Price changes because value flows!

A very interesting article below for all those who monitor or trade the gold markets.

The article exemplifies how I trade. I believe all the the global financial markets (FX, Bonds, Equities, etc) are inter-related and I believe the major pendulum/pivot/anchor around which the global financial markets revolve is linked to interest rates and inflation, best observed in the behaviour of the bullion and US bond markets, and traders should bear this in mind at all times. I like this article because it shows very clearly just how strong the concept of value flow trading is.

What I am yet to do is to come up with exact mathematical models that input the variables in different markets to determine what the price of an asset should be per time based on its ever shifting value relative to those same variables. This will require significant mathematical ability and sadly, I lack that, at  least for now. And I have found a non-mathematical (and consequently, less accurate) way to determine  a fair price for value, and it delivers consistent profit. But I will pursue it much later, maybe as a thesis in subsequent academic pursuits.



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