FINEX ’10 Burlington House, London. 28 th October 2010. Equity indices vs gold price. 2. Equity indices vs the gold price (YTD). Value of in-situ gold - selected markets, Jan & Oct 2010. Cost of discovery of gold resources (Jan 2010) vs value (Oct 2010).
28th October 2010
Equity indices vs the gold price (YTD)
Rising gold price environment
Falling gold price environment
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“Like gold, US dollars have value only to the extent that they are strictly limited in supply. But the US government has a technology called a printing press that allows it to print as many dollars as it wishes at essentially no cost"
“But I see inflation as the greater future challenge. If political pressures prevent central banks from reining in their inflated balance sheets in a timely manner, statistical analysis suggests the emergence of inflation by 2012; earlier if markets anticipate a prolonged period of elevated money supply.”
Twin deficits led to… (Jul-Oct)
A weak dollar and rising oil prices, which led to…
Inflation, to which…
The authorities reacted by raising interest rates, which caused…
A financial crisis, which…
Halved the Dow and…
Threatened deflation, to which…
The world’s monetary authorities reacted by adopting an excessively stimulative monetary policy, which…
Led to inflation (albeit on a different timescale).
In both the 1970s and the 2000s….
US CPI, 1965-2008 (Jul-Oct)