Three ways of looking at gold's current bull market...
YOU MIGHT know this chart already. If not, expect to see
more of it soon.
It shows gold priced in Dollars per ounce across what the TV anchors would
call the "very" long term...
As the gold story goes mainstream
(the BBC news apparently quoted gold prices alongside its cursory glance at
the FTSE and Dow last night), that long-term shape in Dollar-gold is due for
ever-more comment.
To get a little perspective, you might also want to look at gold from another
angle. Such as this one...
Seen from the Euro-end of the telescope, gold's
current bull market didn't really get started until 2005, rather than its 2001
start in Dollars.
All told, in fact, gold priced in Euros didn't really go anywhere - net-net - for
15 years starting 1990. You can see that Dollar prices were little changed
across that period, too. Whereas, over the last half-decade, the Euro-gold
price hasn't shot up quite so high as Dollar-gold. Because, to date at least,
the European Central Bank hasn't set about destroying its own currency with
quite the same verve as the Fed.
Then again, that apparent "spike" in gold prices measured in both Dollars
and Euros during 2010 is worth squinting at, too. Because those recent moves
might give you vertigo when viewed across 36 years.
But unlike the 1980 spike, they're both somewhat less than vertical when viewed
on a logarithmic scale.
Better showing the rate-of-change, this third and final chart puts the current "record-high
gold!" headlines in context, at least on a numerical basis.
Gold's ascent in the Dollar clearly began earlier than it did in the Euro.
But the bull market in gold (or
bear market in money, depending on how you see it) has been much steadier against
both than the present "frenzy" might suggest.
Formerly City correspondent for The Daily Reckoning in London and head of
editorial at the UK's leading financial advisory for private investors, Adrian
Ash is the head of research at BullionVault,
where you can buy gold today vaulted
in Zurich on $3 spreads and 0.8% dealing fees.
About BullionVault
BullionVault is the secure, low-cost
gold and silver exchange for private investors. It enables you to buy and sell
professional-grade bullion at live prices online, storing your physical property
in market-accredited, non-bank vaults in London, New York and Zurich.
By February 2011, less than six years after launch, more than 21,000 people
from 97 countries used BullionVault,
owning well over 21 tonnes of physical gold (US$940m) and 140 tonnes of physical
silver (US$129m) as their outright property. There is no minimum investment
and users can deal as little as one gram at a time. Each user's unique holding
is proven, each day, by the public reconciliation of client property with formal
bullion-market bar lists.
BullionVault is a full member of
professional trade body the London Bullion Market Association (LBMA). Its innovative
online platform was recognized in 2009 by the UK's prestigious Queen's Awards
for Enterprise. In June 2010, the gold industry's key market-development body
the World Gold Council (www.gold.org) joined
with the internet and technology fund Augmentum Capital, which is backed by
the London listed Rothschild Investment Trust (RIT Capital Partners), in making
an $18.8 million (£12.5m) investment in the business.
Please Note: This article is to inform your thinking, not lead it.
Only you can decide the best place for your money, and any decision you make
will put your money at risk. Information or data included here may have already
been overtaken by events - and must be verified elsewhere - should you choose
to act on it.
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