Dust flux, Vostok ice core

Dust flux, Vostok ice core
Two dimensional phase space reconstruction of dust flux from the Vostok core over the period 186-4 ka using the time derivative method. Dust flux on the x-axis, rate of change is on the y-axis. From Gipp (2001).

Thursday, December 12, 2013

Gold's decline is doubly painful

Once again we compare gold to the USDX for the last year, and we will see why the last seven months have been especially painful for gold investors. You might also consider its effect on the companies that mine the stuff.

We can divide the chart into roughly half at Mother's Day. Prior to Mother's Day, gold declined as the USDX rose, but since Mother's Day the trend has been for both to fall.

This second trend is doubly painful for gold holders. Not only are you getting fewer US dollars per ounce, but your US dollars are themselves losing value. This is precisely the opposite of what happened from late 2009 to mid 2010. Back in those halcyon days, it was a great thing to be long gold.

On the bright side, the gold/USDX state still lies along the advance line it took a couple of years ago that carried it to $1800+. On the down side, I still own some, so WTFDIK?

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