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Back To The GoldBugs Ratio

Published 03/01/2022, 11:59 PM
Updated 07/09/2023, 06:31 AM

As you debate whether to take funds from your underperforming altcoins and place them in gold miners or ETFs, you take a look at the latest Bitcoin chart and decide against it. So you freeze. What to do?

Do you finally realize that 60% portfolio loss in your tech stocks and re-allocate it to energy, metals, or cryptos? The chart below shows how gold is generally inversely correlated with gold/miners, aka the GoldBugs ratio. How can it help you?

XAU/USD Weekly Chart

As gold rises along gold stocks (metals and miners), the latter tends to rise faster relative to bullion. I've shown in a previous YouTube video how to use the relationship (specifically at 6:47 mins of this video).

With the Gold/GoldBugs ratio in the lower panel suggesting further declines towards the 6.0 trendline support, it could argue for $2000 as early as this quarter. And it so appears that we're well on our way of getting rid of that 2013/14 fractal of horror as affirmed last week. Let's see what Biden/Powell have to say before buying any gold dips.

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