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GoldSight

A scenario-based thinking tool for the gold price

References

Every mechanism in GoldSight rests on published academic work and publicly available data. Below you’ll find the main sources behind the model. The coefficients are derived from this literature; they are not curve-fitted.

Academic references
  • Erb, C. B. & Harvey, C. R. (2013). "The Golden Dilemma." Financial Analysts Journal, 69(4), 10–42. — Long-run real value of gold and mean reversion (the golden constant). doi:10.2469/faj.v69.n4.1
  • Erb, C. B. & Harvey, C. R. (2024). "Is There Still a Golden Dilemma?" SSRN Working Paper No. 4807895. — Structural demand effect of the ETF era (post-2005). doi:10.2139/ssrn.4807895
  • Barsky, R. B. & Summers, L. H. (1988). "Gibson’s Paradox and the Gold Standard." Journal of Political Economy, 96(3), 528–550. — The real-rate channel: gold moves inversely to the real interest rate. doi:10.1086/261550
  • Synek, R. (2024). "Cointegration Analysis of US M2 and Gold Price Over the Last Half Century." European Financial and Accounting Journal, 19(1), 1–19. — Long-run cointegration between money supply (M2) and gold (the money-supply channel). doi:10.18267/j.efaj.283
  • Carpantier, J.-F. (2021). "Anything but Gold — The Golden Constant Revisited." Journal of Commodity Markets, 24, 100170. — Mean-reversion behavior of the real gold price. doi:10.1016/j.jcomm.2021.100170
  • Boudoukh, J., Richardson, M. & Whitelaw, R. F. (2008). "The Myth of Long-Horizon Predictability." Review of Financial Studies, 21(4), 1577–1605. — Statistics of overlapping multi-year windows. doi:10.1093/rfs/hhl042
  • Box, G. E. P. (1979). "Robustness in the Strategy of Scientific Model Building." In Robustness in Statistics, pp. 201–236. Academic Press. — The "all models are wrong, but some are useful" principle.
  • Hendershott, P. H. & Peek, J. (1991). "Treasury Bill Rates in the 1970s and 1980s." Boston Fed Working Paper No. 91-6. — Ex-ante real-rate estimates for 1970–80.
  • Kupiec, P. H. (2021). "Treasury Yields, Inflation, and Real Interest Rates." American Enterprise Institute (AEI). — Ex-ante real-rate record for the 1970s–early 1980s.
  • Bobrov, A. & Traina, J. (2023). "The Beginning of the Trend: Interest Rates, Profits, and Markups." arXiv:2307.08968. — Sensitivity of the rate peak to the chosen start year (1980 ↔ 1984).
Data sources
  • FRED (Federal Reserve Economic Data, St. Louis Fed) — real rate (DFII10, 10-year TIPS), money supply (M2), and CPI series. fred.stlouisfed.org
  • U.S. Bureau of Labor Statistics (BLS) — Consumer Price Index (CPI-U), the inflation deflator. bls.gov/cpi
  • World Gold Council (WGC) Gold Demand Trends: central-bank purchases and ETF flows (e.g., 2013 ETF outflow −880.8 t; record CB buying 2022–24). gold.org/goldhub

Some entries are working papers whose published versions may be updated. Data may be revised by the issuing institutions; live prices come from third-party sources.