On the week, the gold price went up about $30. Silver was up $0.11. The gold bugs may be wondering if it’s safe to come out now. One recurrent theme of ours is that it is exceedingly difficult to trade gold against the US dollar. Without leverage, it’s not possible to make a profit in […]
Meanwhile, the spread between the interest rate and the dividend yield or earnings yield makes an attractive arbitrage. If you are the CFO of a public company and your shares pay a 4% dividend and you can borrow at 2%, it is practically a “no brainer”. The problem is that incurring debt for no productive […]
The dollar gained 1.4g gold this week, which means gold price in dollars went down $88. This is another big move that will give a false sense of confidence to the Keynesians and Monetarists (one of the business news sites was crowing this week that “Keynes has won”). They are wrong. The strengthening […]
The dollar gained this week about 0.3g, which means gold “went down” $22. The gold bugs may be feeling cheated again. We are more interest in the basis than the price. First, here is the graph showing the prices of the metals in dollar terms. There was a little motion upwards, but mostly sideways and […]
Sometimes not a lot happens. The dollar fell this week about 0.1g, which means gold “went up” $8. The gold bugs may be feeling somewhat better, but what is the basis saying? First, here is the graph showing the prices of the metals in dollar terms. As with last week, there was some up and down […]
