March, 2014

Monetary Metals Supply and Demand Report: 30 Mar, 2014

The gold price fell about forty bucks, and the silver price fell about fifty cents. There are many ongoing rumors about what could be happening in supply and demand for the metals. Mostly, these are about how the world is gobbling up physical metal and the prices will soon skyrocket. A well-known commentator this week […]

Gold Arbitrage and Backwardation Part III (Gold as a Commodity)

In Part I, we discussed the concept of arbitrage. We showed why defining it as a risk-free investment that earns more than the risk-free rate of interest is invalid. There is no such thing as a risk-free investment, and in any case economics must be focused on the acting man rather than theoretical constructs. We […]

Monetary Metals Supply and Demand Report: 23 Mar, 2014

The gold price fell about fifty bucks, and the silver price fell about a buck twenty, which is even more as a percentage. It’s interesting to see what happened to the fundamentals of supply and demand along with these moves. Here is the graph of the metals’ prices. The Prices of Gold and Silver We […]

Monetary Metals Supply and Demand Report: 16 Mar, 2014

The gold price went up this week, and the silver price went up a bit less. Several analysts said that speculators such as hedge funds were buying futures contracts this week and this is the harbinger of further increases in the price. Read on to see if this is true, and if so what it […]

Monetary Metals Supply and Demand Report: 9 Mar, 2014

Gold went up and silver went down this week. It’s natural for most people to say, “gold went up”, but it’s the most unnatural phenomenon. The dollar is paper scrip issued by the Fed. The fine print tells you that it’s irredeemable, which is like a promise to give you a kilo of sugar that […]

Monetary Metals Supply and Demand Report: 2 Mar, 2014

The gold price didn’t move much this week, but the silver price dropped 68 cents. The fundamentals of supply and demand show something clearly that price charts cannot. Read on… Here is the graph of the metals’ prices. The Prices of Gold and Silver We are interested in the changing equilibrium created when some market […]