Entries by Keith Weiner

Selling Low and Buying High: Hedging by the Gold Miners

Hedging is a controversial topic, probably as controversial as any I have written about. Nevertheless, I want to share my thoughts and hopefully add something new to the topic. It is general knowledge that the gold miners had adopted hedging during the long years when the gold price was moving sideways to downwards, culminating in […]

Why is Gold Draining out of COMEX Warehouses?

Gold conspiracy theorists have a new bogeyman. Inventories of gold bars held in the COMEX warehouses are falling. This fact is offered to support the stale allegations of “fractional gold” and “manipulation”. They have been predicting a “signal failure” that is coming any day now, like the Great Pumpkin in the Charlie Brown Halloween special. […]

Interest Rate Roadkill

Yield Curve Arbitrage Does a steepening yield curve help bank profits? It depends on whether a bank has already bought long bonds before the steepening curve makes them cheaper. If the banks already own those bonds, then the more the curve steepens, the more it inflicts losses and then the banks have to sell, which steepens the […]

Would Gold Bugs Make Sense?

It Wouldn’t Make Sense Not to A gold bug argues it would not make sense for the Fed not to manipulate the gold price: If gold isn’t suppressed, then the Fed would be leaving it to trade in an open and transparent market Banks can short-sell with impunity because if they take losses they can […]