September, 2013

Monetary Metals Supply and Demand Report: 29 Sep, 2013

The “No Taper” announcement has been long forgotten, another flash in the pan like most Fed announcements and non-announcements before it. Leveraged speculators jump in, based on the Quantity Theory of Money. If the announcement seems to imply more money “printing” (it’s really borrowing), then prices “should” go up. And the speculators aggressively meet their […]

Monetary Metals Supply and Demand Report: 22 Sep, 2013

Heading into Wednesday, the prices of the metals were sagging. Then, the announcement from the Federal Reserve took everyone by surprise. They said they would not “taper” their purchases of bonds. And BAM! All prices rose sharply: stocks, currencies, and our favorite metals. In a minute, the gold price went up $25. Clearly, traders are […]

Theory of Interest and Prices in Paper Currency Part VI (The End)

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 […]

Oscillation, Feedback, and Resonance

I just saw this fascinating video of a bunch of metronomes that begin ticking out of sync with one another, but slowly line up until they all beat in unison. I really love the title slide where it says “NONLINEAR DYNAMICAL SYSTEMS”, how apropos! Watch the video, the outcome is counterintuitive. The metronomes show some principles […]

Monetary Metals Supply and Demand Report: 15 Sep, 2013

Welcome, we have a new name and a new format to reflect that this is fundamentally about looking at supply and demand in the gold and silver markets. For an introduction and guide to the concepts and theory, click here. Last week, we said: “Is the long-awaited, much-discussed silver breakout still on? We don’t think […]

Monetary Metals Supply and Demand Report: 8 Sep, 2013

Welcome, we have a new name and a new format to reflect that this is fundamentally about looking at supply and demand in the gold and silver markets. For an introduction and guide to the concepts and theory, click here. The gold price was flat, and silver was down slightly. Is the long-awaited, much-discussed silver […]

Introduction to the Monetary Metals Supply and Demand Report

The Monetary Metals Supply and Demand Report is the only accurate picture of the fundamentals of the gold and silver markets. We released a video that presents some of these ideas in an engaging format. We provide a weekly letter based on data and analysis of the monetary metals: gold and silver. This article is […]

Gold Confiscation

It is well known that in 1933, President Roosevelt confiscated the gold of U.S. citizens and made possession of gold illegal. He gave gold owners about $20 an ounce and when he was done, he raised the gold price to $35. The common telling of this story portrays it as a simple case of robbery. […]

Monetary Metals Supply and Demand Report: September 1, 2013

Silver continued to outperform gold until a sharp reversal towards the end of the week. Is this the big breakout? Or is it a headfake? Silver Read about the recent 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. […]