GoldNuggets — Gold Drivers, Miners, GDP
The GoldNuggest Digest: Chinese gold price vs bond yields, US$ Gold vs TIPS, gold miner valuations, and global gold market cap to GDP ratio...
The GoldNuggets Digest is our free publication at the . It contains "nuggets" of Charts & Research that come across our desk on gold/macro which we think might be interesting and useful for investors.
Please feel welcome to share this with friends and colleagues :-)
China Gold
I noticed a couple of things last week: first the gold price in CNY made a new all-time high; second — the gold price in China has been moving in lockstep with Chinese government bonds.
This stands in contrast to the breakdown in the US real yield vs gold price relationship, and gives further nod to the point that China/EM have been in the driver’s seat of the gold price (both in terms of the geopolitics and reserves diversification aspect, but also on the macro/markets side of things).
Gold vs TIPS
As noted, the past link between gold and TIPS real yields broke down in 2022. Warren Pies of 3Fourteen Research comments: “two broad conclusions: 1) Central banks driving the run, 2) This is secular bull market behavior.“ (source)
Of course, with the first chart you might argue gold still moves with the bond market, just a different bond market than in the past!
Gold Miners’ Deep Value
Brandon Beylo of
remarks: ”Gold Equities are the cheapest they’ve been in over 40 years. Record gold prices, record cash flows. Who’s ready for the Golden Age?” (source)also re: Gold Miners, please see survey below…
Gold Market Cap to GDP Ratio
Last but not least, here’s an interesting chart from Econovis showing the path of the Global Gold Market capitalization to GDP ratio. (source)
Market commentators often point to this ratio in reference to the stockmarket as a valuation indicator, some might conclude on that lens that the gold price is expensive/overvalued.
SURVEYS — Can I get your view please?
As I develop this service, I’ll be looking to improve and enhance the Monthly Chartbook over time, to that end, can you let me know which of the following would be of interest to you to be included in the monthly pack? (or might make you more likely to take up a paid subscription to get access to the Monthly Pack! :-)
How interested would you be in material on Silver?
How interested would you be in material on Gold Miners?
How interested would you be in material on other Precious Metals? (such as platinum, palladium, etc)
Thanks, I appreciate your input.
Other than that, please be sure to share this note with friends & colleagues :-)
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ICYMI: Previous edition GoldNuggets — Breakout, Silver, Miners
GoldNuggets — Breakout, Silver, Miners
GoldNuggets is our free publication at the Monthly Gold Market Chartbook. It contains "nuggets" of Charts & Research that come across our desk on gold/macro which we think might be interesting and useful for investors.
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