I don't understand the gold fever. I never care to invest what I don't comprehend. Business Insider has a good "model" up today that explains some idiosyncrasies. Basically, <2% short term rates means gold goes higher, >2% short term rates means gold goes lower.
According to my backtest, tor every one percentage point real rates differ from 2%, gold moves by eight times that amount per year. So if the real rates are at 1%, gold will move up at an 8% annualized rate. If real rates are at 0%, then gold will move up at a 16% rate (that’s been about the story for the past decade). Conversely, if the real rate jumps to 3%, then gold will drop at an 8% rate.
I will be watching so I can finally pull the trigger on DZZ.
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