SH - The Investment Seesaw

• A point we’ve made many times in the past is that gold and the world’s most important equity index (the S&P500 Index - SPX) are at opposite ends of a virtual investment seesaw.
• With regard to the gold market, the aforementioned attempts failed first and foremost because the underlying premise is wrong, in that, there is no good reason for the gold price to track the US money supply.
• If we are right to think that an economic bust (a 1-3-year period of declining confidence) has begun, then this suggests that there is a lot of scope for the gold price to increase over the next couple of years even if the pace of money-supply growth is slow.

For further details see: