World Gold Council, London Bullion Market Association work together to classify gold as HQLA
https://www.theedgesingapore.com/news/g ... -gold-hqla
You should never hold gold stocks for the long term. These are boom-and-bust assets you have to be willing to part with. But history tells us we shouldn’t assume the overall boom is finished yet.
Instead, history shows the gold-stock rally can last despite the recent pain. And the next year can lead to another big gain for gold stocks.
Once gold makes its next move higher, if the ratio gets through the 200-month moving average, I wouldn’t be surprised if it moves closer to 1.0, which would mean the price of gold would be in line with the S&P 500.
Even if the S&P didn’t budge from current levels, that would suggest a 56% increase in the price of gold. And if the S&P continues to rise, the gain in gold would be even higher.
There are a lot of reasons to like gold right now. Its relationship to stocks is another one.
Supportive factors that will prolong the asset’s bull run include US fiscal concerns, geopolitical and macroeconomic uncertainty, and central banks’ diversification of their reserves into gold.
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