ARK CEO questions strength of economy based on metals-gold ratio
Cathie Wood said the divergence of base metal prices from gold could be pointing to signs of extreme economic weakness.
Cathie Wood, CEO and CIO of ARK Investment Management, recently raised concerns about the state of the global economy as gold prices climb while other metals struggle to keep up. In a recent statement, Wood noted a unique divergence between gold and other metal prices, which on average are falling in comparison to gold.
“You’ll notice the gold price has broken out recently, so we’ve been forced to ask the question, ‘Is the gold price pointing to higher inflation ahead?’”
Wood said if that is the main reason behind gold’s move, it’s likely that base metals will begin moving in a similar direction to the yellow metal.
However, she noted that at current, that is not the case, and the current metals-to-gold ratio is below levels leading into the 2008 and 2009 financial crisis.
“It’s approaching COVID-level lows and what that usually means is a very weak economy,” Wood said. “I do think China is very weak and I think the cyclical part of the economy is very weak.”
Historically, where is the ratio now?
At the tail end of 2008, the metals-gold ratio reached about 0.43. Heading into the COVID-19 pandemic, it briefly went under 0.4 and it is currently at about 0.42. The ratio has been as high as 0.7 during the economic comeback post-COVID in late 2021 and 2022, but has been in steady decline ever since.
Augusta Precious Metals(Full Review) $0 (10 Years) $50,000 "Best Overall" by Money Magazine, Award-Winning for 6 Years, Thousands of 5-Star Rankings Goldco (Full Review) Vary $25,000 Industry leader with over $2 Billion in gold and silver. Top rated precious metals company with buy back guarantee American Hartford Gold (Full Review) Vary $10,000 American Hartford Gold, ranked #1 Gold Company on Inc. 5000, boasts thousands of A+ BBB ratings and 5-star reviews, endorsed by Bill O'Reilly and Rick Harrison..Expand Details
Renowned for its exceptional customer service and commitment to transparency, Augusta Precious Metals has garnered numerous accolades, including "Best Overall" from Money magazine and "Most Transparent" from Investopedia. The company's dedication to educating and supporting its clients has earned it top ratings from organizations such as A+ from BBB and AAA from BCA.Expand Details
From precious metals iras to direct purchases of gold and silver, goldco have helped thousands of americans place over $2 billion in gold and silver. Top-rated precious metals company rated A+ by the better business bureau rated triple a by business consumer alliance earned over 6,000+ 5-star customer ratings Money.Com 2024 best customer service 2024 inc. 5000 regionals: pacific ranked #17 2024 gold stevie award, fastest growing company inc. 5000 award recipient, 8+ yearsExpand Details
With over $2 billion in precious metals sold, American Hartford Gold helps individuals and families diversify and protect their wealth. Their expert team provides investors with the latest market insights and a historical perspective, ensuring informed decisions. Trusted by public figures and praised for exceptional customer service, the company offers competitive pricing on top-tier gold and silver coins, backed by a 100% customer satisfaction guarantee
Jerusalem Post Store
`; document.getElementById("linkPremium").innerHTML = cont; var divWithLink = document.getElementById("premium-link"); if (divWithLink !== null && divWithLink !== 'undefined') { divWithLink.style.border = "solid 1px #cb0f3e"; divWithLink.style.textAlign = "center"; divWithLink.style.marginBottom = "15px"; divWithLink.style.marginTop = "15px"; divWithLink.style.width = "100%"; divWithLink.style.backgroundColor = "#122952"; divWithLink.style.color = "#ffffff"; divWithLink.style.lineHeight = "1.5"; } } (function (v, i) { });