Gold News

Fun with Numbers & Gold

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, writes Adrian Ash at BullionVault.

It shows gold priced in Dollars per ounce across what the TV anchors would call the "very" long term...

As the Gold Investment story goes mainstream (the BBC news apparently quoted gold prices alongside its cursory glance at the FTSE and Dow last week), 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, the current bull market in Gold Investment 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 Investment (or bear market in money, depending on how you see it) has been much steadier against both than the present "frenzy" might suggest.

Start your own Gold Investing with a free gram of pure physical gold right now at BullionVault...

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

Please Note: All articles published here are 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. Please review our Terms & Conditions for accessing Gold News.

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