April, 2014

Monetary Metals Supply and Demand Report: 27 Apr, 2014

This was also a shortened week due to Easter Monday, not in the US but in the UK. This week, the prices of the metals were sagging until Thursday morning. Then I believe it was rumors of war in Ukraine sent the prices shooting up. Was this fundamentals suddenly shifting? Read on… First, here is […]

Monetary Metals Supply and Demand Report: 20 Apr, 2014

We have data only for Mon-Thu, as this was a shortened week due to Good Friday. On Monday, the price of gold bumped up $9 but there was no move in the silver price. On Tuesday, the prices of both metals dropped. The gold price ended the week down $24 from last Friday. The dollar […]

Monetary Metals Supply and Demand Report: 13 Apr, 2014

On Wednesday, the Federal Open Market Committee released the minutes of their last meeting. This news helped make a good week for gold speculators. An ounce of gold now exchanges for 16 bucks more than it did at the close last Friday. That’s about 1.5% more of our favorite green paper, for those who count […]

Gold and Silver Speculation

There is a stark difference between the states of the markets for the monetary metals. The number of open futures contracts in gold is low, while in silver it’s high. First, let’s look at the data and then we’ll discuss what it means. Here is the graph showing the open interest. The picture is clear […]

Monetary Metals Supply and Demand Report: 6 Apr, 2014

Are you supposed to buy gold when a bad jobs report is released? On Friday, someone did. Jobs creation fell short of 200K and unemployment ticked up. Silver was bought even more than gold. Someone either bought metal on the disappointing news, or speculated that others will be buying it. Hoarders or speculators? Read on… […]

Why Was China Carrying Gold?

Zero Hedge has run an excellent article explaining the use of commodities, beginning with copper, to work around the Chinese government’s imposed capital controls[1]. Capital controls are intended to prevent arbitrage between the dollar interest rate and the yuan interest rate, which is much higher. To keep this gap open, and prevent the arbitrage—aka hot […]