The Fear Index is useful to measure gold’s true value. The Index’s average over the near-century covered in the above chart is 7.09 percent, compared to 2.27 percent in late 2013, which indicates that gold is undervalued. To return to the ‘norm’ – perhaps not the right word since most of the data measures an era of fiat currency – that this histori

If a bank in Conshohocken is a few million dollars short of meeting their reserve requirement, they might borrow excess funds from a bank in Pittsburgh or Poughkeepsie at the fed funds rate. The fed funds rate is the interest rate that banks charge other banks for overnight loans. The rate fluctuates daily and is considered an indicator of interest

At the quarterly to annual scale however, the factors to price moves become more obvious.

The key factors are:

• GDP growth differentials;

• Interest rate differentials; and

• Capital flows