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Charting In Gold, ProperlyRicky Williamson Most people reading this already price things in gold in their head. You know the Dow/gold ratio. You've seen the S&P in ounces chart more times than you can count. None of that is news here. What I couldn't find anywhere was a way to actually chart in gold properly. A ratio line on somebody's blog is fine for making a point once. It's no use if you want to work in it. So I built one. Every market denominated in gold, with the tools on top. That's it, that's the whole product. The bit that surprised me I expected the charts to look different. They do, and you already know that. What I didn't expect was that the levels move. The S&P priced in gold has a clear support line on it that isn't on the dollar chart. Not a slightly different angle, a different line. And once you notice that, it follows for everything else. Every trendline, every horizontal, every retracement anybody has ever drawn has been drawn on a chart where one of the two axes was moving underneath them. That's not a philosophical point. If you take technical analysis seriously at all, a good chunk of your levels are artefacts of the denominator. You can't really test that with a ratio chart either. Ratio symbols don't behave properly, indicators go strange on them, you can't set an alert on one. That's why nobody had checked. It isn't that the idea is hard, it's that the tooling didn't exist. Miners This is the one I'd point 321gold readers at first. The honest question about any gold miner is whether it beats the metal it digs out of the ground. Plenty of people say that. Almost nobody charts it, because it's a faff to set up and you can't run anything on top of it once you have. Priced in gold, that question answers itself on sight. A miner that's up in dollars and flat in ounces has been carried by the gold price and hasn't really done anything. A miner climbing in ounces is genuinely getting better at the job. Same for the royalty companies, same for the ETFs. It sorts the sector out fairly quickly, and not always in the direction you'd expect. What else Bitcoin in gold is a more interesting chart than either of the arguments people usually have about it. It's been making higher lows since January even while it made lower lows in dollars. Oil in gold tells you what's happening to energy rather than what's happening to the currency, which over the last few years has been two very different stories. And the whole equity complex, screened in gold terms, throws up a much shorter list of things that are really appreciating than the dollar screen does. Shorter than I expected, anyway. Have a look $SPX, $BTC and $ETH are free with no account, at pricedingoldelite.com. Pull up something you own, or something you've written about. If it says the same thing in ounces as it does in dollars then fine, you knew where you stood. If it doesn't, that's the more useful outcome. I'd rather you went and checked than took my word for any of it. ### Ricky Williamson About the Author: Ricky Williamson built Priced in Gold - Elite, a charting terminal that prices every market in gold. 321gold Ltd |
