I'm reet into my Arctic Monkeys at the moment. Anyway, I have had the lyrics to "Why'd You Only Call Me When You're High?" rattling round my head for days ... when it suddenly struck me that one line summed up the inverse relationship of the gold price and of real interest returns on US treasury bonds ... obviously!
"The mirror's image, tells me it's home time"
The question is ... why have yields on US Treasury bonds gone better?
Because of the recovery?
Because of the end of QE? or
Because of the threat of default?
If the latter, isn't it time the mirror's image started to crack?
Actually, whilst we're here ... the title Why'd You Only Call Me When You're High could be used as an analogy for the way in which some gold investors wait until the price is high before they ring up to buy!!
Friday October 11, 2013 by