Tuesday, October 5, 2010

S&P 500 Priced in Silver Even Uglier than S&P 500 Priced in Gold

I have thrown the S&P 500 chart, priced in gold (rather than increasingly worthless US dollars) on the website often to show as you "gain" in nominal dollars, one loses in 'real' purchasing power.  But I've never looked in silver which is a hybrid of precious metal and traditional base metal used in industry.

First, you are telling me QE has no effect on asset prices?  Even talking of it (which started aggressively at Jackson Hole August 27th) has set this thing on fire.  Coincidence? Unlikely - unless you believe the global economy suddenly improved within 24 hours of Bernanke's promise to flood the world with little pieces of green paper.  Silver was dead in the water for months on end. (I'm smacking myself in my head as I held silver and gold for a long time, and dumped silver while keeping the gold exposure)

Now, the S&P 500 in silver in the "best September in 7 decades!" (as long as you don't hold the S&P in dollars)


Best read up on 'nominal' vs 'real' right quick folks.

POMO Arigato Mr. Roboto.
POMO Arigato Mr. Roboto.
Thank you very much Mr. Roboto 

Long Powershares DB Double Long Gold in fund; no personal position

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012 FundMyMutualFund.com