The Gold Report: Since you last spoke to The Gold Report in March, the price of gold has collapsed. What happened?
Rob Cohen: Gold has collapsed when compared to the U.S. dollar, but not when compared to other hard assets. For instance, since gold was allowed to float in 1971, its average price ratio per ounce to the price of a barrel of oil has been 15:1. Right now, it's about 13:1, so it's not that far from the mean. We remain a little puzzled by what has happened. Going back to 2008, there's been a strong correlation between the expanding balance sheet of the Federal Reserve and the rising price of gold, but that link has been cut, at least for now.
We have also had some positive economic data out of the U.S.
We're expecting space to be tight for this week's upcoming gold webinar. Have you reserved your seat yet? If not, we're extending a last minute invitation to all of our lurkers out there.
Save your seat by registering today and find out what MarketClub co-founder and former floor trader Adam Hewison will be sharing about this ever-popular precious metal. Adam will show you how this market can be traded, what the pros and cons are, and how you can analyze all the ways to trade it with MarketClub's "Trade Triangles."
This is Adam Hewison and I am happy to say that I am back from "down under". I was visiting my daughter who just married a wonderful man from New Zealand and our family had a wonderful time celebrating the event.
Now that I have my market legs back and I'm in the right time zone, I wanted to create a video for you on gold. Before you get to that video you may want to watch this video that I recorded on 9/21 of last year. It proved to be very prophetic.
We are already in the “silly season” and what I mean by that is after December 15 most traders are not serious about the markets and they’re not committed to any large positions for the balance of the year.