"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Wednesday, November 30, 2011

Monthly Gold Chart - Closing Price Only

I still marvel when looking at these charts at those who continue to denigrate gold and particularly those who deny it is a safe haven.

While we all know that the official government CPI numbers are a fantasy, it is still rather interesting to see where gold has run into overhead resistance based on this inflation adjusted chart.


  1. Scary charts for sure. In early 1980, Volcker raised short term interest rates near 20% and you could buy 10 year bonds at 15%. This time, Bernanke has promised to keep rates at 0% until at least mid-2013. Things seem a little different this time.

  2. It would be nice to see (sum of world paper money) / (gold price), (sum of all dollars) / (usd gold price) or (sum of all treasuries, notes, etc.) / (gold price). CPI/Gold doesn't say anything....

  3. Filip - we will now all eagerly await for you to provide us with such a visual chart as you suggest. Please make certain you spend a considerable sum of your time creating one. Then we can all tell you how utterly worthless it is to the rest of us.

    Thank you for your comments which say nothing.

  4. Comex is deteriorating and is nothing more then zombie speculators. Look abroad to other exchanges where real interest is rising. Asia ain't playing that rigged Comex game when they see what happened with MF Global.

    SHFE IO http://i41.tinypic.com/2hyj4ao.png
    SHFE Vol. http://i40.tinypic.com/am6qh1.png

    MCX India http://i40.tinypic.com/6yhymq.png

    America is falling behind. They're broke...

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  5. Those charts might not be so scarey if they were logarithmic ...

  6. Dan does us a great service by covering where the interacting trends and real world influences converge. No point in dancing around issues like overspeculation, overleverage, overindebtedness and credit overissuance when you can meet them solidly and directly.

  7. Dan in your opinion does a new round of QE need to happen before the next move? Or does this chart suggest that since the money supply has increased so much since then, that gold is currently undervalued?

  8. @zenith191

    Point is trend is slowly shifting now that futures traders realize their funds are uninsured. MF Global calamity is just getting started—watch for volume decline in coming months.

    PM market is heading east where the buyers are.

  9. ROFL good one Trader Dan! You tell Filip. Thx for the chart!

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