By John Overstreet:
Note: In this series, I am attempting to describe the fundamental relationships between and within the yield and price complexes.
Keynes wrote that the old gold standard functioned according to an unwritten set of principles, which he called "the rules of the game." The "rules" primarily referred to gold's role in international trade and finance, but in this article, I am going to refer to them as the broader relationship that gold had with prices and equity and bond yields.
In my previous article, I showed that there appears to have been a revolution in the way that gold relates to these factors. Understanding the nature of that revolution can help investors and citizens understand some of the paradoxes of the modern market.
First, let's review some of what we have learned so far. Or what we think we've learned, at any rate.
1. Real commodity prices have
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