Tuesday, August 17, 2010

Interesting correlation

I've been puzzling for some time over why gold took off when it did. Looking at this chart:

historic gold price chart

... you can see that gold "turned a corner" in the second half of 2005. This is a well-defined corner, the kind of corner that you see in the charts of the Great Depression or other significant economic events. Yet the global economy did not begin melting down until the last half of 2008, nearly three years down the road from that 2005 corner.

So, I asked myself, what was happening in mid-2005? Were there any significant events that year? It turns out that there was a significant event... the 7/7 London train bombing.

If you accept the hypothesis that the gold market is heavily manipulated and if you accept the hypothesis that 9/11 and 7/7 were likely false-flag events, then it's not a big leap to suggest a correlation between 7/7 and the gold price turning a corner in 2005 at almost exactly the same time.

Just a thought.

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