As many of you know, I was a hardcore deflationist way back when. Hardcore. But after getting slapped upside the head last year I spent a lot of time reassessing my thesis (and part of me died inside when I did, but Nietzsche says that’s good for us and it’s best not to disagree with him, lol). And $GSG is among the things that gave me a clue as to the strange places we may be headed.
First, let me show you the long-term trend line. You’ll notice is agrees nicely with oil’s. Difference is, oil is still trying to nose through, this one already has. Next chart, let’s move in.