Follow the Money In Gold, Silver and Equities

Remember the steady stream of headlines suggesting the stage was set for another big decline in silver and gold this spring? Let’s not forget that the headlines also repeated “sell in May and go away” trading heuristic for nervous equity investors over the same period. Watch the approaching cycle dates in September.

Gold, London P.M. Fixed (Gold) and Z Scores of Secular Trend


Silver, London P.M. Fixed (Silver) and Z Scores of Secular Trend


Large Cap Stocks Total Return Index (LCSTRI) and Z Scores of Secular Trends


Headline: Gold Rallies to Record in Best Run Since 1980

Gold rose to a record above $1,600 an ounce as debt concerns in Europe and the U.S. boosted demand for the metal as a protection of wealth. Bullion in euros and pounds rose to all-time highs and silver topped $40 an ounce.

President Barack Obama is pressing congressional leaders for a multitrillion-dollar agreement in deficit-cutting talks as negotiators near an Aug. 2 deadline for raising the debt limit. A default would cause more panic than the collapse of Lehman Brothers Holdings Inc. in 2008, former Treasury Secretary Larry Summers told CNN in an interview broadcast yesterday. The euro fell versus the dollar after European Central Bank President Jean-Claude Trichet reiterated his opposition to any restructuring of Greek debt.

Source: finance.yahoo.com