Tag: yen

Gold, Silver, Yen & S&P Correlation

| April 9, 2015 | Category: Price
Gold, Silver, Yen & S&P Correlation

Over the last 8 years of gold prices rallying and crashing, the statistical correlation has been about 0.74. Since the all-time high in gold prices in August 2011, the yen-gold correlation has been an astonishing 0.96. Similarly, yen and the S&P 500 show an inverse correlation. It is the same story with silver. The correlation between smoothed silver and smoothed yen over 8 years has been about 0.80 and about 0.97 since August 2011. It has almost been a “one-way” trade since then. It is amazing that the yen, gold, silver, and the inverse S&P have been so tightly correlated (over 0.95) for almost four years …

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Safe Havens Since The Great Financial Crisis

Safe Havens Since The Great Financial Crisis

With the distortion created by central planners it is unlikely that a long term rise in any asset is able to hold. The global currency war will undoubtedly result in cracks in the monetary system and in several currencies in particular. Do not exclude the landscape to change with a political decision; in a matter of seconds the world could look different. In the same respect, the probability of a monetary event shocking the landscape of currencies is very high. In case gold is remonetized with the aim to alleviate the world’s debt burden, a sudden spike in the price of gold could realistically be expected.

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Currency Suicide: Japan Experiencing The Ugly Effects Of Its Own Policy

| December 1, 2013 | Category: Money & Currency
Currency Suicide: Japan Experiencing The Ugly Effects Of Its Own Policy

One of the consequences of Japan’s currency debasement is now starting to show its ugly head: the cheaper Yen may be intended to stimulate exports but it simultaneously makes imports more expensive.

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