Chart of the Day

Gold Vs. Bonds: Which is the safe haven?

Today’s Chart of the Day is one shared by Rafa Marulanda which I reproduced for clarity reasons. It’s a ratio chart of Gold vs. 20+ year US Treasury Bonds (TLT). Ratio charts are great because they help to simplify opportunity cost for investors. When the line in the chart below is rising it means Gold is outperforming Treasuries and vice versa. Both of these assets are perceived as safe-havens.

As you can see, this ratio is breaking out of a multi-year base in favor of Gold. What is the saying bases? – “the bigger the base, the higher in space.” Also, January has historically been the best month of the year for Gold. As Rafa points out, Gold looks like the more attractive ‘safe haven’ at the moment.

Our Wheaton Precious Minerals position broke higher on Monday into a profit position. The Silver and Gold sector are a top sector on our priority buy list.




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