Thursday, August 1, 2013

war and gold

How does war effect the gold price let along how would news of a company effect the companies stock good news would bring light into the stock also bad news of other assets would lead others into a particular stock let it be gold if you don't trust everything else people trust gold...





https://wealthcycles.com/features/assets-wealth-cycles-point-to-coming-change

Here’s what we see when looking at the chart below:Here’s what we see when looking at the chart below:
-Civil war pushed gold far higher than farmland, labor
-Hard money era post civil war shows clearest valuations, as gold is money
-Undervaluation in gold relative to factory worker labor from 1940-1970
-It should take at least an acre of farmland to buy an ounce-As shown in hard money era, after 1934 revaluation, and after the 1980 market revaluation
Laborer Hours Gold Farmland Cropland Chart 1850 Civil War to 2013
With worker hours and wages suffering at present, the recent move lower in the blue line was mitigated, and is set to reverse, just as it did in 1976.
Farm land valuations remain elevated, as well, showing a weaker dollar (and thus more dollars per bushel of whatever) is expected ahead.
We won’t be surprised when it takes more worker hours in the future to buy an ounce of gold, just as we won’t be surprised as gold continues to outperform farmland until the ratio is at least 1:1.
It isn’t that bonds, stocks, farmland, and real estate won’t go up at all in dollar prices—it is that they just won’t go up like the metals, because they are not in their WealthCycle. Bonds began their wealth cycle in 1981, stocks ended theirs in 2000, and housing, as we all remember, in 2006. By then the debt super-cycle was teetering, and as Charles Hugh Smith recently asked:
Which do you trust more: the Fed's implicit promise that the stock market will never crash again (because "the Fed has our back"), or that every asset bubble boom is inevitably followed by a bust?
Remaining engaged until the cycle completes is crucial, as one must remember: 80% of the gains are made in the final years.Here’s what we see when looking at the chart below:


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