“…holdings in [gold] exchange-traded funds fell to the lowest in over four years…” as this article states. But is this a real relationship? Do holdings at the ETF necessarily fall with a falling gold price and rise with a rising gold price? The same thing has not occurred in SLV–amidst an even larger price drop than that of […]
Homebuilder confidence increased in May. Lumber prices in the last two months? Not so much, down over 20%. When I was a kid, I saw many competing stereo receivers offering higher and higher wattage. It was pretty ridiculous to see these lightweight and flimsy boxes claiming to put out 500 watts or more. Clearly […]
If there really was gold manipulation, articles like this one would do an injustice. The author uses the word “indisputable”. I do not think that word means what he thinks it means. According to this article: “Indian inflation eased to a 41-month low in April, giving the central bank room to extend monetary easing…” I think […]
With all the discussion of the crash of April 12-15, I thought it would be interesting to do a little forensic analysis. Instead of looking at price graphs, let’s look at a graph of the gold basis. Contrary to the currently popular assertion that the gold price crashed due to manipulation, the evidence points to something […]
Today, the European Central Bank announced that it was cutting interest rates. It also said that it was open to negative deposit rates. We are witnessing nothing less than the metastasis of monetary cancer. A falling interest rate causes the destruction of capital. Here is a picture of the rate falling from over 4% to […]
To understand what is going on with COMEX stocks, don’t look at the stock level – it will lead you astray. You need the metric I presented at the Gold Standard Institute’s 2009 seminar; one which Professor Fekete thought was the single most important metric to determine stress in the market. The second thing you need to do […]
I hope this essay provides some food for thought. It is not my intention to insult or belittle anyone, but using humor and cold logic, to help people understand an abstract topic with many counterintuitive principles. The ultimate goal is to protect what you have and make some more (in that order). Gold is money. […]
In the recent Gold Basis Report, we published a graph showing the open interest in gold and silver futures (i.e. the number of contracts held at any given time). At the time of the crash and in subsequent days, the open interest number decreased only modestly in both metals. A number of people asked me […]
Barron’s Big Money Poll Bullish Consensus Reaches a Record High This week’s Barron’s magazine contains the latest Barron’s ‘big money’ poll. Evidently they interviewed a herd – there was once again near unanimity on a number of markets. The bullish consensus on US stocks clocked in at a new all time high for the Barron’s […]
The big picture over the past few months is that markets are experiencing one large adjustment after another, perhaps analogous to the shifting of tectonic plates that create rolling earthquakes and various aftershocks. The first large move was the fall in the yen (rise in dollar/yen), and the change in sentiment towards Apple (AAPL) which […]
