Monday, January 28, 2013

Startling Relationship Between Gold Price & U.S. Gov’t Debt Suggests What Price for Gold in 2017?

"Here is the scatterplot with the relationship: (The most recent datapoint, 9/30/12, is the one farthest to the right on the chart.)

To see this a little better, I multiplied the gold price by 7 so the scale would be about the same, and charted both together over time. See below:

[Below is another look.]

[While]…it would seem like a no-brainer investment thesis to buy gold at today’s price as a proxy for the not-otherwise-investable thesis that US total government debt will increase in the future, one must consider the possibility, however, that the gold price has already anticipated the future increase in US government debt..."

at http://www.munknee.com/2013/01/startling-relationship-between-gold-price-u-s-govt-debt-suggests-what-price-for-gold-in-2017/

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