Gold has surpassed $1,300/0z. Naturally, the question is whether this means a rally or will the usual suspect knock it down.
Here is a graphic representation of gold markets:
The graph indicates that we had entered a new bull market for gold. What is the reason why some analysts feel that gold prices will go much higher? That belief is based on the ratio of commodity prices (including gold) to the Stock Market:
This ratio has fallen to an almost all time low. While Americans had been persuaded to not buy gold, China has vacuumed up all it could. Here is the purchase of several nations in 2016:
And in 2017, this trend continued with a 55% drop in US purchases. American bought stocks and bitcoin, the Chinese and Indians bought gold:
If there is a reset in gold price (and some experts insist that it is coming), China, India, Germany and Thailand will be the chief beneficiaries.
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