Our first report will be released on Gold, Guns & War which illustrates how gold has historically reacted to different types of war events, both internationally as well as domestically, as in civil unrest and revolution. Illustrated here, we can see the historical volatility in gold over decades of interacting with the global economy and war. This chart shows how volatile the instrument is now in relation to a historical all time correlation.
We are witnessing the gradual rise in volatility since the 1999 lows. We are still nowhere near the sharp rise in volatility sparked by the collapse of Bretton Woods. Nevertheless, the timing is setting up on our volatility models for the future. Everything is lining up and we will be reviewing this at the Hong Kong WEC at the end of the month.