August, 2013

Monetary Metals Supply and Demand Report: August 25, 2013

Silver outperformed gold this week. Is this the big breakout? Or is it a headfake? Read on to see the emerging contango in silver! As we go forward, there is more boilerplate material in this report. This is good for first-time readers or as a refresher. But if you are reading it every week, you […]

Don’t Trade Last Week’s Silver Story!

Since February of this year, there has been at least one silver contract in backwardation. Since May 31, the September contract has been backwardated. But that has now come to an end. Before we get to the graphs, let’s define our terms. Some people look at a graph of (cleared trade) prices. If they find […]

Monetary Metals Supply and Demand Report: August 18, 2013

Silver massively outperformed gold this week. Some people think that the prices have broken out, and that means that silver will begin moving rapidly towards its historic price of 1/16 ounce of gold. Read on to see what the bases say. As we go forward, there is more boilerplate material in this report. This is […]

Selling Low and Buying High: Hedging by the Gold Miners Part II

In Part I, I made several points. First, that in the last gold bear market, miners capitulated after prices were low and falling for a long time. Then they sold massive amounts of their future production forward. Years into the subsequent bull market, they capitulated again, this time buying back the rights to their own […]

Theory of Interest and Prices in Paper Currency Part V (Falling Cycle)

In Part I, we looked at the concepts of nonlinearity, dynamics, multivariate, state, and contiguity. We showed that whatever the relationship may be between prices and the money supply in irredeemable paper currency, it is not a simple matter of rising money supply à rising prices. In Part II, we discussed the mechanics of the […]

Monetary Metals Supply and Demand Report: August 11, 2013

“Gold and silver went up this week.” Do you think of it this way? Do you think this is good news? We encourage you to think of it as an incremental move of our national currency downwards, towards zero. That is definitely not good, not even for those who own gold. The dollar should be […]

Monetary Metals Supply and Demand Report: August 4, 2013

“Gold and silver went down this week,” is how most people would say it. This would be perceived as bad news in the gold community. We looks at it differently. We say, “The dollar rose this week.” Expressing it this way puts it in perspective (and shows that the dollar should be measured in gold […]

A Picture of Gold Availability Update

The December gold future went into backwardation today, July 31. Below, we show the dates when previous gold contracts went into backwardation. As you can see, it is creeping farther and farther out. This is a picture of gold availability to the market drying up. – Apr first backwardated Feb 15, 30 trading days before […]