Gold: Bulls vs. Bears

The following charts show how many hours the average production and nonsupervisory employee would have to work to buy one ounce of gold (assuming for the sake of argument that no taxes would be paid on the earnings).


Click to enlarge.

The exponential trend has failed. Working 80+ hours to buy a single ounce of gold is absolutely ridiculous. Just think how many rolls of toilet paper and cans of food that could buy! The gold bubble is popping just like it did in the early 1980s. Table pounding screaming sell!


Click to enlarge.

The exponential trend has not failed. The economy still stinks. Two-year treasuries pay just 0.3%. The economy is clearly not strong enough to support higher real yields. Any talk of rising real yields is therefore absolutely ridiculous! Gold sits at the very bottom of its exponential trend channel. Table pounding screaming buy!

I think I've pretty much summed up what you should do with gold. Invest accordingly, lol. Sigh.

Source Data:
St. Louis Fed: Custom Chart