Hi Drilly
Gold often tracks the same way as Equities...it just hasn't happened for a wee while ....Often we fall into false thinking when 2 market behave in an opposite manner for a lengthy time,,, we then assume and think it is normal behaviour and then explain why it happens that way (false logic).....Of Course the media always have explanations why it happens which reinforces our belief... rightly or wrongly.
Drilly..You know like me that many people are adverse to charts...but....they are vital to investors as a reference to past history....we have such poor memories of past market performances that we need charts to make us remember what really happened.
Below is the long term chart DOW with Gold...I can't see any inverse correlation between Equities and Gold.
Safe haven and a flight to safety?..didn't show up on the chart in 1998 with the Asian banking Crisis. You would assume something would've happened here especially with the Indian's love affair with Gold ..No real similar behaviour between the 2001 and 2008 bear crashes either.
However..its possible that the flight to gold's safe haven may have happened but as Gold is measured in US$ perhaps the US$$ masked the true behaviour of Gold because the US$ is also seen as a safe haven asset.
There is something I personally noticed and haven't seen it mentioned in the media anywhere .. that is.. the last time Gold went mad it was also during the later stages of a DOW's secular bear cycle. Unfortunately due to the Gold market intervention (setting of the gold standard) which creates confused market signals I have not got enough history to prove this DOW / Gold relationship.
http://i458.photobucket.com/albums/q...LDLongterm.png