Entries by Keith Weiner

The Curious Case of Falling Gold and Silver Prices

  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. […]

Gold Leaps Into Backwardation!

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.  […]

Is this the Beginning of the End?

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.

Blowing Bubbles

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 […]

Oil or Wheat as Money????

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. […]