Chart of the Day: Correlation Between the Price of Gold & Chinese/ Indian Incomes

August 29, 2012 By 4 Comments

Using IMF data, Bloomberg has discovered a striking correlation between rising incomes in China and India and the gold price from 2000 to 2011.

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Source- Bloomberg

 

Extrapolated out this might make one question how gold will perform as China slows or perhaps even falls into a recession, but we believe gold will do just fine from save haven currency flow during the next stage of the global fiat debt collapse.


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Comments

  1. Avatar of LastStraw LastStraw says:
    August 29, 2012 at 4:55 PM

    Very simple explanation.  Both China and India are cultures that understand the value of gold and silver to protect their wealth.  If you increase their income the will invest the additional funds into gold and silver, driving prices up.  

  2. Avatar of Silverholic Silverholic says:
    August 29, 2012 at 6:57 PM

    Recently articles have imageshack images that do not load, one at the top the other on the bottom. Doc, can you fix it?

    • Avatar of Flying Wombat Flying Wombat says:
      August 29, 2012 at 10:03 PM

      Looking at the data on the above pic, it’s hosted at silverdoctors.com.  The next time you see a specific example of what you’re talking about, post a quick note on the thread so others can check.  What you’re describing sounds like it might have something to do with things on your end, but post when you have a fresh example.

  3. Avatar of Sumkid Sumkid says:
    August 30, 2012 at 10:51 PM

    China and India will sure take the league at beating the USA if they continue that way. Too bad that most of the American people’s incomes doesn’t go up with inflation. Even if they do, most people will waste a big part of it on latest fashions, gadgets, etc. instead of buying gold and silver.

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