How to grow your wealth during the coming collapse?

150 THE BiG DROP

Throughout 2014 the gold price closely tracked the commodity

index as might be expected. The price trend of both was down-

ward, which reflected the strong deflationary trends that be-

gan to prevail last year. But in November, this correlation broke

down and gold began to diverge sharply from the overall index.

That was not the only significant development in gold late

last year. As this chart shows, the pace of gold shipments out

of the Federal Reserve Bank of New York increased sharply in

October and November. Over 90 tons of gold were shipped

out of the Fed to their rightful owners abroad in those two

months alone. That was more than half the total amount of

gold shipped out for the entire year. Bear in mind that prior

to 2012 almost no gold had been shipped from the Federal

Reserve Bank of New York since the 1970s.

It’s a mistake to read too much into short-time series of

data such as the Gold/GCC correlation or the gold shipments

from the Fed. Every analyst knows that correlation of factors

does not prove causation. But these two charts do suggest that

suddenly late last year, gold stop trading like an investment

In Tonnes FRBNY Total Foreign Gold Deposits Change

Jan-14 6195.60 0.00

Feb-14 6185.29 -10.31

Mar-14 6175.71 -9.58

Apr-14 6175.71 -5.16

Jun-14 6165.39 -5.16

Jul-14 6141.08 -24.31

Aug-14 6125.61 -15.47

Sep-14 6118.25 -7.37

Oct-14 6076.25 -41.99

Nov-14 6029.11 -47.15

Dec-14 6018.79 -10.31

Total: -176.81

Source: Bullion Star