In Part I , we presented the data for gold and silver price, open interest, and basis. They form a curious combination, which we discuss in this Part II. If open interest is rising, then it means one of two things. Contracts are being created by fresh buyers taking the ask, in which case we […]
About Keith Weiner
PhD, CEO & Founder
Keith Weiner is a leading authority in the areas of gold, money, and credit and has made important contributions to the development of trading techniques founded upon the analysis of bid-ask spreads. He is the founder of DiamondWare, a software company sold to Nortel in 2008, and he currently serves as President of the Gold Standard Institute USA. He earned his PhD from the New Austrian School of Economics.*
Entries by Keith Weiner
A curious thing happened last week. The prices of both monetary metals have been falling for a week and a half through February 15. No, that’s not the curious part. There is no law of nature that says the prices have to go up, but if they go down it must be artificial somehow. […]
Keith Weiner discusses why interest rates prior to 1933 was set by the marginal saver and how the saver was removed from this process post 1933.
Since late January, the February gold contract has been in backwardation. This means that one could make a profit by simultaneously selling a gold bar and buying a February contract. One would still have one’s gold plus a little extra. I coined the term “temporary backwardation” (http://monetary-metals.com/temporary-backwardation-the-path-forward-from-2008-3/), to describe this curious and very recent phenomenon. […]
The World Gold Council asserts that gold demand fell 4% in 2012. Can you spot the fallacy? See: The Business Insider
The rate of interest on the 10-year Treasury has been ticking up. Some prognosticators are calling for rising rates, trouble at the Treasury (when they roll lower-interest bonds at a higher rate), and the Beginning of The End. Here is a graph to put it in perspective.
Investor attitudes have become quite bullish again. Few want corporations to improve their balance sheets. And near-record numbers of them want corporations to spend money on capital projects. Congratulations Dr. Bernanke. You have reflated the credit bubble. Bets that when it bursts this time, the ensuing crisis will be even worse than the one in […]
The title of the following video clip is Would Returning to Gold Standard End Currency Wars? Obviously, countries which use gold as money would have to accept the fact that gold cannot be devalued. This would be a huge improvement over today. Michael Woolfolk from Bank of New York Mellon takes the anti-gold position, and Komal […]
Why wouldn’t oil or wheat or land or bonds work as money? To understand why, think of simpler example: manufacturers money-off coupons. To anyone buying the product, the coupon is worth its face value. So why don’t coupons circulate as a kind of currency. Let’s say you were planning on buying Charmin bath tissue today. […]
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