Correlation Economics Backup

The R-Star from the New York Fed gives a measure of the natural real interest rate. For example: On May 2023, the R-Star was 1.14% while the real 10 year bond yield was -1.5%. This means that the 10 year bond yield should rise further OR the CPI inflation rate should come down.  

Michael Pento shares his secret model. 

In Gold We Trust Report 2023: https://ingoldwetrust.report/wp-content/uploads/2023/05/In-Gold-We-Trust-report-2023-english.pdf 

When banks fail, gold soars.  

OPEC oil cuts are good for gold.  DUBAI, April 2, 2023 (Reuters) - Saudi Arabia and other OPEC+ oil producers on Sunday announced further oil output cuts of around 1.16 million OPEC+ to cut oil production by 2 million barrels per day to shore up prices, defying U.S. pressure. PUBLISHED WED, OCT 5 2022 OPEC reaches agreement to cut oil production to 32.5 million barrels a day: Oil ministers PUBLISHED WED, NOV 30 2016 OPEC+ reaches deal to cut oil production by 9.7 million barrels per day Updated 10:01 AM EDT, Mon April 13, 2020 OPEC will cut another 1 million bpd in July 2023.

Sprott Holdings update : Buys: Triple Flag Precious Metals, Equinox Gold. Sells: Maverix Metals, Sibanye, Mag Silver, SSR Mining.  

Gold has a long way to go.

Oil should be moving higher.  Update: Update:

Gas rig counts are correlated to gas production.

Comparison of gold miners Vs. Soma Gold. 

 The  near term forward spread  is a predictor of a recession. Also works with gold.

 Oil production will start dropping. But this will happen around 500 rig counts. When oil production starts to drop, oil will bottom out.

 Oil production will start dropping. But this will happen around 500 rig counts. When oil production starts to drop, oil will bottom out.

Gold should head higher.

Lower copper grades means higher copper prices.  However, mining costs are manageable.