Simit Patel

Here is an original InformedTrades infographic that outlines the case for a mania in gold. We have more infographics coming, so stay tuned.


Or, for those who prefer video, try below.


Sources:

FDIC: Failed Bank List
Real Interest Rates - Gresham's Law
How big is our big deficit? - Global debt-to-GDP ratios (4) - CNNMoney
Does Central-Bank Gold-Buying Signal the Top Is Near? - Casey Research
Is the Table Set for a Mania in Precious Metals? - Casey Research

Other Links

IT Precious Metals Dealer Matrix
Casey Research Guide to Crisis Investing
Precious Metals Section of InformedTrades University

Sites That Have Embedded This Infographic

Infographic: The Case for a Coming Mania in Gold
Casey Research: China, Metals, and Your Money

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Tekmnd

That's really cool! Did you make that graphic?
Where can you place it?

Like what?

Cheers
Tek

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Simit Patel

i did make it! took me a while, but i really enjoy it. i plan to "amortize" it by taking the image components and adding a video where i can talk through it too, to add to the explanation.

there are sites like visual.ly -- InformedTrades | Visual.ly -- that allow folks to upload their infographic collections (and even some tools for automating infographics though those don't work that well). but i can also submit it around the web and notify various blogs and other publications to invite them to republish it. infographics are popular and so i think it can be a good way to promote informedtrades. and while i personally am all about reading and text, i know many people will find it easier to learn through infographics.

here is a short list of topics i had in mind for future infographics:

hyperinflation
oil production
japan
the global demographics situation
comparing the major types of energy production (oil, natural gas, hydro, solar, wind, nuclear)
uranium supply/demand
china

any requests? ideas for ones that would be popular?

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Tekmnd

Pretty cool!

For a suggestion- maybe a budget breakdown since it is an election year.
I will think of more I am sure

Cheers
Tek

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Tekmnd

2 More-

Brazil
Total Money Supply

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Simit Patel

good call -- country-specific ones like brazil should give lots of opportunities and might be really useful to forex traders here.

for those who prefer video, i've added the video to the initial post.

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Luke Myers

The coming Mania in Gold. This are all nice ideas but at the end of the day we need to see a full blown breakdown in the USD index and that is only going up which makes Gold under pressure as a result.

With No QE3 I see more downside risk to gold in the near term. The Fiscal cliff should be a death nail to gold as well because it will be both deflationary and good for the long term reduction if US Dept, which is what the US needs. So I am bearish Gold and Silver and see no Global Mass Mania starting anytime soon in my mind.

I still own some gold and silver anyway but only as a small part of my asset base. If you look at the Dow Gold Ratio as a final example it is totally screaming sell your gold and buy stocks. It could keep going as I do not think US stocks have bottomed by any means of the imagination but on a historic basis the Gold Dow Ratio does not lie or deceive unlike human emotion.

Gold is pure and is a great measurement of true value. The Gold housing ratio bottomed earlier in the year and is now turning up so based on this data the us housing market has also bottomed signaling a great time period to buy a house.

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The price is the smartest one out there.

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Simit Patel

here is the dow/gold ratio chart.....i think it could go back to 2:1 or lower, as it did during the great depression and the gold bull market of the 70s. based on today's prices, a dow/gold ratio of 2:1 would put gold at $6400. during the 70s gold bull market, the price went from $35 to $880 -- about 25X. if we take the start of this bull market at $250 around the turn of the century, a 25X move would put us at $6250.


technically i think gold bulls will need to defend $1520. there is a descending triangle there which is a bit ominous for bulls, and if that breaks, i think a move to 1340 is in the cards. i am expecting 1520 to hold, though. i also think gold and usd can rise together, as they did in early 2010 when we were in the first part of the euro crisis.

here is a chart highlighting the descending triangles on gold.

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