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Gold goes up, Banking goes down and vice versa

I regularly use Yahoo!
chatrooms to look at what people are saying about different stocks and
industries, so I was intrigued to see a link to Google Finance today.

To me, it appears to be almost the same as Yahoo! Finance, and so where’s the value-add?  Then I started looking at sector analysis and found the Google Finance sector analysis of financial services easier to navigate than the Yahoo! area.

Now
what I was really after is some way to compare two things: Gold prices
and Banking sector stocks.  My idea is a very basic one: Gold goes up
when Banking goes down, and vice versa.  Although this idea has
occurred to me before, and I’m sure someone has tracked this, I cannot
find any proof point. 

Wherever I go – Google, Yahoo and more –
not one seems to have a simple way to marry the two indices together,
and certainly not over a 30-year or more cycle.

So the nearest I got is these two charts from the last five years, with Yahoo! showing banking stock tanking since January 2007 whilst, since January 2007, the price of Gold has doubled.

Any comment or view on the theory or charting welcome. 

About Chris M Skinner

Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here...

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