Category: Currency Currents

Gold: Time for a little dirt nap?

Real recovery may mean gold is due for a little dirt nap:

1) Other real (physical) asset investments in the real economy (land, plant, equipment, etc.), that appear relatively cheap at the beginning of recovery thanks to the impact of recession, compete with gold as an investment class once again.

2) If we run on the assumption that silver is more an industrial metal than gold, during recovery the relative price/demand for silver rises, thus the gold/silver ratio declines.

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