Wednesday 2010-10-06

Since the beginning of 2010, the SGD has gained 7% against the dollar, which implies that 7% of gold (or any dollar-denominated asset)'s appreciation this year has been due to a weaker dollar. Or when the S&P500 has returned 2.4%, that makes for a negative return of about -5%. yay.

SGDUSD=X as proxy for dollar vs world
>>> 76.38 / 71.39

IAU as proxy for gold price
>>> 13.12 / 11.091

S&P500 as proxy for the market
>>> 1160.75 / 1132.99

Several people in my workplace have gold holdings; I don't. I keep asking them when they're going to sell. They don't have an answer for me. Ken Rogoff says watch out when rates go higher. Fortunately for my friends, that doesn't appear to be any time soon. ;)

What are the odds this will implode quickly like last time?