Historical Chart of Dollar vs Gold
We're currently working on our 2008 outlook, The Bespoke Report: Everything Investors Must Know About the Markets in 2008. One of the numerous charts we are using is a historical comparison between the US Dollar and the price of Gold (as shown below). A lot of times, a simple chart is worth more than any amount of commentary that market gurus can write. We think this is one of them. But we want to know what Think B.I.G. readers think about it. Let us know in the comments section below if you have any input.
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In the future, there may be further changes in the trade-weighted dollar index (which includes many Asian currencies) which may not show up as significantly in the US dollar index.
Posted by: RB | December 06, 2007 at 02:17 PM
Hi guys,
First thanks for your daily input on the economy/market! Wonderful Job.
Well, on your graph Dollar/Gold.
Let's look at what's happening right now. The Dollar is gaining back (versus Euro for example) and the gold index (GDX)broke down his support level 49-50, creating a nice bearish channel up pattern.
Your graph could help illustrate a negative correlation of asset, ideal for purpose of diversification of a portfolio (remember that good old Markowitz).
Posted by: X-man | December 06, 2007 at 02:22 PM
See here for example (how the broad index has been falling faster than the major currency index since mid-2006)
https://research.stlouisfed.org/fred2/fredgraph?graph_id=2773&category_id=0
Posted by: RB | December 06, 2007 at 02:25 PM
-1 beta.
Posted by: aa | December 06, 2007 at 03:33 PM
Great example of how gold *really* relates to the dollar. Keep up the good work.
Posted by: Ryan | December 07, 2007 at 01:24 PM
can you run u.s. dollar v. silver for a similar time frame?
Posted by: salvador | December 07, 2007 at 08:55 PM
can you run u.s. dollar v. silver for a similar time frame?
Posted by: salvador | December 07, 2007 at 08:56 PM
can you run u.s. dollar v. silver for a similar time frame?
Posted by: salvador | December 07, 2007 at 08:56 PM
can you run u.s. dollar v. silver for a similar time frame?
Posted by: salvador | December 07, 2007 at 08:57 PM
I am not that worried about the markets now. Most of the bad news are out now. I think that we are in some kind of flat correction.
Posted by: Albert | January 25, 2008 at 02:28 AM
Those who don't get away from the dollarn now will be in the breadlines.
Posted by: Zenter | October 08, 2008 at 01:26 PM
Our system, Is nearing the end of its lifespan. the Dollar has lost 96% of its buying power. and after the recent spending spree and printing of money. It will only get worse over time.
Posted by: william | May 28, 2009 at 07:17 AM