It's been awhile since I looked in detail at the relationship between Dr. Copper and Mr. Gold.
Last time the world broke, we saw the gold-copper ratio rip upwards from about 270 to roughly 600, in only a few short months. It never held that level, instead falling to a Lyapunov-stable area somewhat over 300.
The gold-copper ratio has generally increase since then, but is showing signs of some kind of break. Is this a sign of deflation? A crash of copper, and rising gold? In the last few weeks, copper is looking a little better--or is this just a prelude to PDAC?
Sadly*, I won't be going this year. China won't let me.
*Actually, I'm not that sad.
Last time the world broke, we saw the gold-copper ratio rip upwards from about 270 to roughly 600, in only a few short months. It never held that level, instead falling to a Lyapunov-stable area somewhat over 300.
The gold-copper ratio has generally increase since then, but is showing signs of some kind of break. Is this a sign of deflation? A crash of copper, and rising gold? In the last few weeks, copper is looking a little better--or is this just a prelude to PDAC?
Sadly*, I won't be going this year. China won't let me.
*Actually, I'm not that sad.
What do you mean the world is breaking based on high gold/copper.
ReplyDeleteHigh store wealth with gold/making stuff with copper?
The idea is that the last time the world broke, there was a real collapse in industrial demand, at least relative to the demand for real money. Hence a major collapse in copper. Gold fell also, but not nearly as much, and soon began to climb again.
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