Serious precious metal investors, who are driven by the desire to generate and protect wealth and not by a certain ideology, consistently find that it pays to take an objective look at charts.
At The Arora Report we do a 360 degree analysis and analyze charts in many different ways. Here is a chart that is most relevant to the precious metal action so far in 2014.
Click here to see an enlarged chart.
The chart compares gold shown in orange represented by the ETF GLD, silver shown in grey represented by ETF SLV, stocks shown in yellow represented by ETF DIA, inverse of stocks in cyan represented by ETF DOG, bonds in neon green represented by ETF TLT, and Japanese yen in red represented by EFT FXY.
The scale on the right hand side is a percentage scale. The chart shows a vertical line at the beginning of the New Year 2014; to properly analyze, the chart is structured for all asset classes to converge at the zero point at the beginning of 2014. This is represented by the white horizontal line, you will notice from the scale on the right hand side that the white horizontal line is at zero percent and forms the reference point. The chart also shows the same asset classes leading into Christmas and then between Christmas and the New Year. It is important is to take a look at where we came from into the New Year.
Here are the simple observations that stand out from this chart...….Read more at KITCO