Monetary Metals Supply and Demand Report 26 July, 2015

For those who are speculating on the dollar—i.e. most people—there was good news this week. The dollar rose almost a milligram, to 28.3mg gold. That’s a big gain, and welcome news for those who keep all of their eggs in the one dollar basket, perhaps because they don’t want to risk any of it on […]

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Why Are We Here?

I don’t mean the meaning of life, the universe and everything. I mean why are we in the gold market? This week and especially today, I have seen so many emails, messages, and articles with the same theme. “Woe is me.” Seriously? The price of gold dropped $100 in a couple of months, and it’s like […]

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Lions, Tigers, and Gold Bears, Oh My!

We can’t count how many articles we saw today, bemoaning gold going down. The price action is bad for gold (whatever that means). China underreported their gold holdings. No, China doesn’t care about gold. No they want the price to go down so they can buy it cheap. No, they want to convince the IMF […]

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Monetary Metals Supply and Demand Report 19 July, 2015

The prices of the monetary metals cascaded downward this week, and the ratio of the gold price to the silver price rose accordingly. Many analysts and speculators are puzzled. With everything going on in the world, gold should go up. After all, China released its new gold holdings and the banking system in parts of […]

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Monetary Metals Supply and Demand Report 12 July, 2015

Last week, we concluded with this: “So now, for the first time in about two years, the fundamental price of silver is above the market price, about $0.35 over. … Unless you really like to trade the bleeding edge of a signal change, you may not want to jump in here. Silver’s newfound scarcity could […]

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There’s Your Hyperinflation

Hyperinflation is commonly defined as rapidly rising prices which get out of control. For example, the Wikipedia entry begins, “In economics, hyperinflation occurs when a country experiences very high and usually accelerating rates of inflation, rapidly eroding the real value of the local currency…” Let’s restate this in terms of purchasing power. In hyperinflation, the […]

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Silver Market Change Report 5 July, 2015

The prices of the metals drooped further this shortened week (Friday was a holiday in the US, as the Fourth of July, Independence Day, occurred on Saturday). The S&P 500 index also fell this week, as did crude oil. Markets all over the world are beginning to feel shocks from Greece. As we write this, […]

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June 26 Silver Flash Crash: A Forensic Analysis

On Friday morning, at around midnight (Arizona time), the price of silver had a little crash. It dropped 30 cents in 11 minutes. More importantly, it dropped more than 10 cents in a single second. Then, the price rose above its level before the event. Here is a graph of the event, with each tick […]

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Interest – Inflation = #REF

I have to admit that I derive some pleasure in taking on hoary old myths. For example, some economists assert that the interest rate you see on the Treasury bond is not real. You see, it’s only nominal. To calculate the real rate, they say you must adjust the nominal rate by inflation. Real Interest […]

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They’re Coming to Take Away Your Cash

The stories are all over the Internet. Governments are forcing us into a cashless society. Supposedly the pretext is terrorism, and the real reason is to take more control. No doubt more power appeals to politicians, and banning cash seems like the next step after mandatory reporting of cash transactions. However, I think there is […]

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