A very, very interesting correlation on silver and gold - Thanks to Craig Hemke

in silver •  8 years ago 

daily silver report logo.jpg
Craig Hemke is probably one of the smartest men that I have come to know (virtually of course) and I have immense respect for his points of view on financial matters especially precious metals such as gold and silver. I definitely recommend following his work through various channels.

Anyway, a couple of months back he mentioned that the stock markets gets triggered in a direct correlation to USD to Japanese Yen ratio (USDJPY) and Volatility (VIX). He mentioned that when USDJPY is up and VIX is down, the market goes up and vice versa.

Just yesterday, by chance I found a sound bite from him, where he mentioned that if you invert the USDJPY then it is in direct correlation with gold prices. In other words look at JPYUSD (instead of USDJPY) to see where the price of gold will be for the day!! I got the data (two different set - currency and gold) and tried to superimpose one on another and I sure was star-struck! Have a look at the correlation yourself in the picture below.
jpytousd mapping with gold.jpg
Now, I am more of a silver person, simply because silver is going to get more interesting very soon and besides gold is for countries whereas silver is for people for storing wealth. So I found the charts and superimposed the two. Once you see it (see below), you will probably have the same breath-stopping feeling that I did.
jpytousd mapping with silver.jpg
Can there be any better way than this to trade silver?!

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Very nice, I also follow Craig's work

Hmmmm....something to ponder.

Thanks!