Gold the best performer of 1H 2014

Posted | 07/07/2014 / Views | 2048
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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…

Gold the best performer of 1H 2014