S&P 500 priced in gold...this is what the stock market looks like in real money (looks like a big head and shoulders pattern...)
As highlighted by Quoth the Raven on X, "If we go back to 0.5x, that puts gold at $12,000, or the S&P at 1850 or they meet in middle at $9000/4500 which would be gold 2.5x and S&P -30%ish"
The hedge factor
Gold is the "everything hedge", but if you are looking for global equity hedges, then VIX looks relatively more interesting compared to chasing gold here. Source: TME, LSEG
Gold miners are making record profits:
Production margins are at an all-time high as gold prices surge while costs rise much slower. Miners are now earning more per ounce than ever in the past 10 years. Meanwhile, gold miners ETF, $GDX, has skyrocketed 103% year-to-date. Source: Global Markets Investor
The YTD performance of gold is the best since 1979
Source: Augur Infinity
Interesting theory...
The Shanghai Gold Exchange (SGE) has activated two overseas vaults—one in Saudi Arabia, the other in Hong Kong—marking a direct expansion of RMB-denominated gold trading beyond mainland borders. This move represents a strategic move to enhance China’s gold trading infrastructure and strengthen the SGE’s role in global gold price discovery. These aren’t symbolic moves. They’re operational. They’re live. Source: Alasdair Macleod @MacleodFinance
A golden year so far...
Source: GoldSilver HQ
Gold stocks have crushed every sector of the S&P 500 this year
Source: Tavi Costa, Bloomberg
"The Ukraine war and the weaponization of the dollar was the straw that broke the camel's back"
Source: zerohedge
