Pop Question! What did the price of Gold just do for the 23rd time in better than eight years since the week ending August 20, 2010?
Answer: For the 23rd time since that date, the price of Gold just posted a weekly settle in the 1220s.
What it means. That one ounce Canadian Maple Leaf coin which you dutifully purchased or perhaps found among Uncle Filbert’s personal effects back in 2010 is still valued today at the same amount of Dollars.
What is not the same amount. Try the supply of Dollars: by the M2 measure, there were $8.66 trillion of them as of August 20, 2010; today they amount to $14.29 trillion, (source: St. Louis FRB). The U.S. national debt on that date was $13.38 trillion; this year-end estimation has it at $21.52 trillion, (source The Balance). How about global derivatives as reported by the Bank for International Settlements: (oh rats, our trusty HP-12C doesn’t offer enough decimal places to deal with the high-end estimate which exceeds a quadrillion).
Heck, even the S&P 500 since that date (at 1072) has been up as much as 174% (to 2941), is presently up 146% (at 2633), and upon completion of our call for a 27% correction (to 2154) will still find it twice as high (+101%) from back then, (the gross domestic product up just 30% en route) … all of that just in case you’re scoring at home, (shrewd thinking given your money manager’s voice-mail box likely being full over this measly correction thus far of just 10%).
But you get the point.
You’ve gotten it year-after-year and yet Gold’s price on balance is still here. Go figure, (no wait, we just did). As for the 23 week’s of 1220s settles, there was that first one in 2010, followed by one in 2013, and then by four in 2014, three in 2015, four in 2016, five in 2017, and again five year-to-date in 2018. Dizzying.
To be sure, Gold’s price throughout has been tradable, reaching as high as we all know to 1923 on September 2, 2011 and then to as low as 1045 on December 3, 2015 … indeed successfully tradable so long as one has known when to follow which trend, when to fade which trend, when to act by the passage of contract volume and by passage of trading range and by the passage of time, when to trade and when never to trade and — as is always paramount — prudently managing one’s cash all along the way.
