Gold/Copper Ratio Ticks a New High

The Gold/Copper ratio is hitting a new high in its recovery rally this morning

The Gold/Copper ratio sets a metal with a primary utility of providing long-term monetary value and stability against a metal that is reflective of industrial/cyclical progress.

As the economy oh so slowly weakens, gold would be expected to continue to out-perform. I felt at the time that the plunge in the Gold/Copper ratio into the May low was a last impulse against the forces of economic contraction and now with the ratio rising again, looking to reestablish its uptrend, the signaling is disinflationary and counter-cyclical. Right now the market is still trying to hang a “Goldilocks” label on the situation. Later, the plan has called for pleasant disinflation to morph to unpleasantly deflationary.

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