Gold and T-Bills "ZERO CORRELATION" Graph
Depending on the length of time you have been watching markets, you will find that you have a bias towards thinking that gold and interest rates (as measured by US Gov't T-Bill Rates) have some kind of a pattern.
But the longer term chart reveals that there is almost zero correlation. I wont even run the "correlation indicator" because you can very easily see that they have nothing in common.
What can we see here instead? That Gold went up a tremendous amount and is consolidating that gain. AND we can see that rates rise into the range of the previous advance and then turn back down. That's about it.
My next chart will be T-Bill Rates adjusted for inflation and tax rates, but it isn't an easy graph to make.
What does it show now? That rates are still very low and you earn nothing on an inflation-adjusted basis. If you want to earn a return, you have to take some calculated risks and invest in something.
Think - Research - Analyze - Invest
Tim West
10:45AM EST 10/26/2018
But the longer term chart reveals that there is almost zero correlation. I wont even run the "correlation indicator" because you can very easily see that they have nothing in common.
What can we see here instead? That Gold went up a tremendous amount and is consolidating that gain. AND we can see that rates rise into the range of the previous advance and then turn back down. That's about it.
My next chart will be T-Bill Rates adjusted for inflation and tax rates, but it isn't an easy graph to make.
What does it show now? That rates are still very low and you earn nothing on an inflation-adjusted basis. If you want to earn a return, you have to take some calculated risks and invest in something.
Think - Research - Analyze - Invest
Tim West
10:45AM EST 10/26/2018
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