While the dollar was struggling overall in 2017, non-dollar countries took full advantage of last year´s dollar weakness. According to the Bank of International Settlements (BIS), the total amount of credit to foreign (nonbank) borrowers increased dramatically as a result of the weaker dollar. By the way, feel free to interpret “nonbank borrowers” as emerging market economies. In the second half of 2017, a staggering 22% was issued in dollar-denominated debt. Issuing dollar-denominated

The gold price broke earlier this year convincingly through the $1,300 per troy ounce barrier. In January, the gold price reached a level of $1,365/oz. The last time that gold prices reached this level was in March 2014. It has been four long years. Many thought that gold was on the onset of a renewed rally, that it would finally truly break through the point at which every single gold rally hesitated over the past years. Nonetheless, gold prices are gradually falling back to that cursed

This week I stumbled upon an interesting chart. In this chart, the Goldman Sachs Commodity Index (GSCI), an index tracking the prices of a basket of commodities, is contrasted with the S&P 500 index. This gives us the GSCI/S&P 500 ratio. Whenever the GSCI/S&P 500 ratio is high, we are paying relatively little for stocks in terms of commodities. Conversely, if the ratio is low, we are paying relatively much for stocks relative to commodities. What does the ratio imply right now? Is this the moment to invest in precious metals?