Gold on Friday gained by $27.90 or 1.47% to $1,926.20 per oz - its biggest up day in six weeks - surpassing its short-term key breakout point of $1,908 per oz in a very convincing manner to officially end the downtrend that began on August 7th after gold reached a short-term peak at its all-time nominal high of $2,089.20 per oz!
NIA's #1 favorite commodity corn had an even BIGGER day on Friday with the front month contract gaining by $0.08 or 2.07% to $3.95 per bushel - its highest weekly settlement price since approximately one full year ago! When corn last hit $3.95 per bushel after spending approximately one full year below $3.95 per bushel, in May 2019, it rallied an additional 17.53% within one month to reach a 2019 high of $4.6425 per bushel.
The corn/gold ratio has now increased for nine consecutive weeks from an all-time low of 0.14922 to a current level of 0.20507 for a nine week increase of 37.43%! We believe the corn/gold ratio is on its way back to its trailing four-year median of 0.2789, which would currently value corn at $5.372 per bushel!
The Teucrium Corn Fund ETF (CORN) finished last week at $13.50 per share, its highest closing price since NIA suggested the January 2021 CORN $13 call option on August 25th when CORN was trading for $12.53 per share. NIA suggested the January 2021 CORN $13 call option at a price of $0.70. It finished last week at $0.83 for a gain of 18.57% and hit an intraday high on Friday of $0.90 for a gain of 28.57%.
Corn in China based on the Dalian futures exchange November 2020 contract gained by $0.41 or 4.54% on Friday to settle at a new 5-year high of $9.45 per bushel. Chinese corn has increased by 44.27% from one year ago, its largest one year gain in history, and is approaching its all-time high of $10.44 per bushel. It is now $5.50 per bushel higher than U.S. corn prices!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 737 CORN January 2021 $13 call options and may either buy more contracts or sell his contracts owned at any time. This message is meant for informational and educational purposes only and does not provide investment advice.