Financial Post - Posthaste: You Might Not Have Heard of This Recession Indicator - But it's Getting Louder
Article by Pamela Heaven in Financial Post
Here’s a recession warning you might not have heard of — and it’s getting louder.
Oil prices have plunged this year by almost 21 percent while gold has gained about 26 percent, widening the gap between the two to almost 50 percent.
“Rapidly rising gold and plunging oil aren’t good signs for the global economy and this year to May 5 is among the most extreme examples,” writes Mike McGlone, senior commodity strategist for Bloomberg Intelligence.
“A global reset signaled by gold’s outperformance appears to be happening with implications for deflation that could be as steep as the inflation of the past few years.”
The disparity is the fourth biggest in the years between 1925 and 2025, he said, and the closest parallels are 1934 and 2007, the years preceding the Great Depression and the Global Financial Crisis. In 1933, there was a .....