The Grasberg-Saville Gold Rating is unique. In order to calculate the rating, several fundamental drivers are first measured and filtered:
1.) Treasury Inflation-Protected Securities (TIPS)
2.) KBW Bank Index Inverse Change Ratio
3.) Bond(30-Year)/Dollar Ratio
4.) 30s/5s Yield Curve Change Ratio
Readings above 50 are bullish for Gold. Readings below 50 are bearish for Gold.
Special thanks to long-time speculator Steven Saville, without whose keen insights into the fundamental mechanics of the markets this math mightn’t have been pursued.