The dollar fell this week. Most people would say gold went up 10 bucks and silver 66 cents. As always, the question is what happened in supply and demand in the metals? Was this speculation? Fundamentals? Did the market dynamics change? Read on… Here is the graph of the metals’ prices. The Prices of Gold […]
There are two reasons why people buy gold and silver. The first is that they’re the monetary metals. Many people don’t want more than a certain exposure to the risks of the banking system. They hold dollars for liquidity and beyond that trade them for metallic money. This money is not for trading. The second […]
The dollar made a multiyear high, closing on Thursday at over 26mg gold! Not even the Fed’s propaganda squad would trumpet this as good news and not in this way. And, of course, the gold bugs regard it as bad news. Though they say that the dollar is going to zero, they measure the value […]
The gold and silver prices recovered about half their drop the previous week, ten bucks in gold and 21 cents in silver. Is this the blastoff of the metals, long heralded in song and hoped-for by goldbug blogs? Read on, and we promise no Obi Wan Kenobe imitations this time… Here is the graph of […]
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I originally wrote this in September 2013. It is just as relevant now in December. The big news in America is that the rate on the 10-year Treasury bond has risen dramatically from around 1.6% to over 2.9%. This is 130 basis points from a starting point of 160, or an increase of more than […]
The gold and silver prices dropped this week, 22 bucks and 46 cents respectively. Is this the bottom? Will the dollar begin to resume its fall this week? We would not be short gold here, for sure. Read on… Here is the graph of the metals’ prices. The Prices of Gold and Silver We are […]
Let’s consider speculation and arbitrage, and look at what it really means when the cobasis is deeply negative, in that light. This is the case in silver. Per the definition of cobasis = Spot(bid) – Future(ask), it means either that physical metal is being dumped on the bid, pressing it down, or that people are […]