Thursday, September 1, 2011

YTD and Multi Year Performance of Metals and other Assets

Observing the YTD performance of various asset classes around the world - The performance difference between Gold/ Silver and rest of the popular assets like SP500/ Currencies is very stark. The reason is the basis difference between a structural bull market and a cyclical one. And now for western and european stock markets that may turn bear any week now.

No matter how hard & severe the corrections are (which usualy are in precious metals), you never should get shaken out of your core positions in a bull market. Its always a buy on dips rather than short it at any moment. And larger picture anyways is Gold friendly... Primarily if I may succintly put it - a new monetary system possibly would have a partial Gold/ Silver backing along with other tangibles.

Silver stays true to its volatile nature. But it has a long way to go in this bull market. Refer to a graph elsewhere citing 650 years Silver prices.

Platinum is consolidating in a range since quite some time now. There was a news article few days back about Japanese buyers warming up to the metal. We will have to see if the trend catches on.

Copper again is consolidating but has made lower highs. Lets see what direction does it want to take. Notice primary difference between the price behavior of Copper and Gold. Thats the difference between the Monetary instrument and an industrial commodity.

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