GLDI - Has An Age-Old Relationship Changed?
2024-07-24 05:30:00 ET
Summary
- The age-old relationship hasn’t changed and it can’t change because it is firmly rooted in economic reality.
- The nature of gold hasn’t changed over the past two years, so the commodity/gold ratio still should be positively correlated with the risk-free interest rate.
- Trends in the T-Bond yield no longer reflect trends in the risk-free interest rate due to an expanding risk premium in the T-Bond yield associated with an increasingly profligate government.
Editor's note: Originally published at tsi-blog.com on July 24, 2024
[This blog post is an excerpt from a recent commentary at www.speculative-investor.com ] ...
Has An Age-Old Relationship Changed?