{"id":6595,"date":"2013-01-28T15:31:04","date_gmt":"2013-01-28T20:31:04","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=6595"},"modified":"2013-01-28T15:31:04","modified_gmt":"2013-01-28T20:31:04","slug":"is-gold-really-undervalued","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2013\/01\/28\/is-gold-really-undervalued\/","title":{"rendered":"Is gold really undervalued?"},"content":{"rendered":"<p>I agree with <a title=\"James Turk: GoldMoney.com\" href=\"http:\/\/www.peakprosperity.com\/podcast\/80609\/james-turk\" target=\"_blank\">James Turk<\/a> that gold is a currency. It does not generate income and is simply a store of value. Demand for gold will rise in times of uncertainty and when fiat currencies, against which it is traded, are being debased by central bank balance sheet expansion. Now central banks have been printing money since the global financial crisis in 2008, so why is gold not soaring into the stratosphere as Turk predicts?<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" alt=\"Spot Gold\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-01-24-gold.png?w=525&#038;ssl=1\" \/><\/p>\n<p>The answer lies with global deleveraging. Central banks are attempting to counter the strong deflationary effect of private sector debt repayment. The inflationary effect of their activities is largely offset by deflationary forces emanating from the GFC. If we compare the performance of gold to the CRB and DJ-UBS Commodity Indices it is clear that most commodities have not risen in tandem with gold and there is little evidence of inflation.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" alt=\"US Dollar Index\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-01-28-gold-crb-dubs.png?w=525&#038;ssl=1\" \/><\/p>\n<p>Copper recovered after the GFC but also seems to have hit a ceiling.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" alt=\"US Dollar Index\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-01-28-gold-copper.png?w=525&#038;ssl=1\" \/><\/p>\n<p>Only Brent Crude shows similar price escalation to gold. Nymex WTI Crude is far more subdued.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" alt=\"US Dollar Index\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-01-28-gold-crude.png?w=525&#038;ssl=1\" \/><\/p>\n<p>Without strong inflation, gold is unlikely to continue its meteoric rise. More so if there is a down-turn in crude oil and copper. Watch closely.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I agree with James Turk that gold is a currency. It does not generate income and is simply a store of value. Demand for gold will rise in times of uncertainty and when fiat currencies, against which it is traded, are being debased by central bank balance sheet expansion. Now central banks have been printing &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2013\/01\/28\/is-gold-really-undervalued\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Is gold really undervalued?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8],"tags":[815,861,1064,3204],"class_list":["post-6595","post","type-post","status-publish","format-standard","hentry","category-gold-commodities","tag-copper","tag-crb-commodities-index","tag-dj-ubs-commodity-index","tag-spot-gold"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Is gold really undervalued? - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is gold really undervalued? - the patient investor\" \/>\n<meta property=\"og:description\" content=\"I agree with James Turk that gold is a currency. 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He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters. Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis. Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008\/2009 and 2020 bear markets well ahead of actual events. He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.","sameAs":["https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/","https:\/\/www.instagram.com\/colin_thepatientinvestor","https:\/\/au.linkedin.com\/in\/colintwiggs"],"url":"https:\/\/thepatientinvestor.com\/index.php\/author\/investor\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9tQ4n-1In","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":5676,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/10\/04\/gold-tips-and-inflation\/","url_meta":{"origin":6595,"position":0},"title":"Gold, TIPS and inflation","author":"Colin Twiggs","date":"October 4, 2012","format":false,"excerpt":"The Dollar Index rally to test resistance at 81.00\/81.50 appears to be faltering. Respect of resistance would confirm the primary down-trend. Reversal of 63-day Twiggs Momentum below zero earlier indicated a trend change; a peak below zero would strengthen the signal. * Target calculation: 81 - ( 84 - 81\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5673,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/10\/04\/rj-crb-commodities-index-delisted\/","url_meta":{"origin":6595,"position":1},"title":"RJ-CRB Commodities Index delisted","author":"Colin Twiggs","date":"October 4, 2012","format":false,"excerpt":"Intercontinental Exchange announced that ICE Futures US (formerly NYBOT) will cease listing any new expiration months in the RJ-CRB Index and Continuous Commodity Index (\u201cCCI\u201d) Futures Contracts, and is delisting all expiration months in RJ-CRB Index Futures Contracts as of the open of business on September 26, 2012. Reasons given\u2026","rel":"","context":"In &quot;Gold &amp; Commodities&quot;","block_context":{"text":"Gold &amp; Commodities","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5739,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/10\/11\/gold-and-commodities-wait-on-the-dollar\/","url_meta":{"origin":6595,"position":2},"title":"Gold and commodities wait on the dollar","author":"Colin Twiggs","date":"October 11, 2012","format":false,"excerpt":"The Dollar Index rally recovered and is headed for a test of resistance at 81.00\/81.50. Respect of resistance would confirm the primary down-trend. Reversal of 63-day Twiggs Momentum below zero also signals a\u00a0primary down-trend; a peak below zero would strengthen the signal. * Target calculation: 81 - ( 84 -\u2026","rel":"","context":"In &quot;Gold &amp; Commodities&quot;","block_context":{"text":"Gold &amp; Commodities","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6961,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/03\/14\/gold-finds-support-while-the-dollar-rises\/","url_meta":{"origin":6595,"position":3},"title":"Gold finds support while the Dollar rises","author":"Colin Twiggs","date":"March 14, 2013","format":false,"excerpt":"Spot gold is testing primary support at $1500 to $1550. Reversal of 13-week Twiggs Momentum warns of a reversal and failure of support at $1500 would confirm. A Twiggs Momentum peak below zero would strengthen the signal. On the weekly chart we can see respect of support at $1550 is\u2026","rel":"","context":"In &quot;Gold &amp; Commodities&quot;","block_context":{"text":"Gold &amp; Commodities","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7729,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/05\/09\/gold-rally-falters-while-bond-yields-rise\/","url_meta":{"origin":6595,"position":4},"title":"Gold rally falters, while bond yields rise","author":"ColinTwiggs","date":"May 9, 2013","format":false,"excerpt":"Gold's bear rally has run out of steam, with continued tests of support at $1440\/$1450. Breach would penetrate the rising trendline, indicating another test of primary support at $1320. Target for the decline would be $1200*. Breakout above $1500 is unlikely, but would test $1550.* Target calculation: 1350 - (\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15236,"url":"https:\/\/thepatientinvestor.com\/index.php\/2017\/05\/05\/gold-falls-despite-weak-dollar\/","url_meta":{"origin":6595,"position":5},"title":"Gold falls despite weak Dollar","author":"ColinTwiggs","date":"May 5, 2017","format":false,"excerpt":"Commodities are falling, with the DJ-UBS Commodity Index testing support at 82. Despite the Dollar Index breaking support at 100. Spot Gold followed, breaking medium-term support at $1240\/$1250. A test of primary support at $1200\/ounce is now likely. Breach of $1200 would signal a primary down-trend. Respect would confirm the\u2026","rel":"","context":"In &quot;Commodities&quot;","block_context":{"text":"Commodities","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/commodities-gold-commodities\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/6595","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=6595"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/6595\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=6595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=6595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=6595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}