The Morgan Report Blog

Gold Dow/Gold Ratio Trend Change

It is interesting to see gold rising while the global sharemarkets decline.
http://www.sharelynx.com/chartstemp/InternationalIndices.php

We can measure these moves with the Dow/Gold Ratio.
Looking at the short term we see a trend reversal with a breaking of the wedge formation.

Click on the image to view larger size.

Looking at the larger picture it appears that we are at the same place as the trend reversal in 1975.

Perhaps now we will see a new market where gold doesn’t get sold off on market declines but rather Gresham’s Law comes into effect as the world’s investors seek gold’s safe haven status.

Click on the image to view larger size.

 
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David Morgan is a precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems, and the key reasons for investing in precious metals.

As publisher of The Morgan Report, he has appeared on CNBC, Fox Business, and BNN in Canada. He has been interviewed by The Wall Street Journal, Futures Magazine, The Gold Report and numerous other publications. If there is only one thing to teach you about this silver bull market it is this… 90% of the move comes in the last 10% of the time! Where will you be when this happens?

 

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