Gold the best performer of 1H 2014

USAGOLD produced the chart below showing gold has outperformed every other investment class in the first half of this year.  They then talked to 3 fundamental reasons in their eyes as to what could project it further.  1. A possible stockmarket meltdown – they quote famed Jon Hussman who predicted the last 2 crashes when most didn’t and who thinks we are on the brink of a 38-50% US stocks bust; 2. Gold / oil price ratio correction – Gold has tracked oil relatively closely until the April 2013 take down of gold.  

At a time of conflicts around major oil fields it is unlikely will to come down to meet gold thus the opposite is over due.; and 3. Gold has underperformed its historic correlation to inflation and this too is over due a correction.  Markets always revert to their mean trend and these are 3 classic examples of markets looking over due to do so.  The chart also nicely debunks the gold bears dire predictions…