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Gold Follows Stocks Vertically
Because if stocks like the prospect of imminent printing, or at least the latest daily rumor thereof, until Germany once again opens its mouth and refutes everything, gold should love it. Sure enough, the yellow metal has opened $20 higher and is back over $1700 again.
Incidentally for anyone still clamoring about a bubble in gold, the following often recycled chart by Don Coxe should put things into perspective.
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What a horrible chart. First, I can fit any two lines to look like they correlate when they are on arbitrary scales. The currency starts around 450B and rises to 1.1T, or a factor of 2.4. Gold on the other hand rises from 300 to 1,900, a factor of 6.3. If anything this chart would support gold being a bubble. Please put up a correct chart starting from 1971 when they abandoned the gold standard that compares the price per oz of gold to M1&M2.