The Grasberg-Saville Gold Rating is unique. In order to calculate the rating, several fundamental drivers are measured weekly:
- Treasury Inflation-Protected Securities (TIPS)
- KBW Bank Index Inverse Change Ratio
- 30-Year/Dollar Ratio
- 30s/5s Yield Curve Change Ratio
As we are of the opinion that the price of a security is not in and of itself a representation of value, the rating does not reference gold. Rather, the Grasberg-Saville Gold Rating is designed to challenge price: Is the price-action supported by the fundamental picture? Is there a positive or negative divergence from the fundamentals? Etc.
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.