Basic Reports

Why Is Gold Becoming Scarcer, 16 Aug 2015

For quite a while, we have been talking about scarcity in gold. The cobasis for both October and December is positive. These contracts are backwardated. The cobasis for the February 2016 contract is not far from backwardation. The gold market is tight. Why? Let’s explore. Part of the matter is that the price has fallen. […]

Monetary Metals Supply and Demand Report 9 August, 2015

Last week, we left off with this. “Something is happening with gold…” It began in Dec 2008. To understand it, it is necessary to understand two principles. The first is that gold is money and the dollar is credit, which currently has nontrivial value. A dollar is worth 28.4mg gold. To understand the second, let’s […]

Monetary Metals Supply and Demand Report 2 August, 2015

You cannot understand gold if you think it goes up and down, that the dollar is money and therefore the measure of all things, including gold. This is a very bold statement, so let’s look a little closer. Mainstream articles often ask the question if gold is a good inflation hedge, which means: does gold […]

Monetary Metals Supply and Demand Report 26 July, 2015

For those who are speculating on the dollar—i.e. most people—there was good news this week. The dollar rose almost a milligram, to 28.3mg gold. That’s a big gain, and welcome news for those who keep all of their eggs in the one dollar basket, perhaps because they don’t want to risk any of it on […]

Monetary Metals Supply and Demand Report 19 July, 2015

The prices of the monetary metals cascaded downward this week, and the ratio of the gold price to the silver price rose accordingly. Many analysts and speculators are puzzled. With everything going on in the world, gold should go up. After all, China released its new gold holdings and the banking system in parts of […]

Monetary Metals Supply and Demand Report 12 July, 2015

Last week, we concluded with this: “So now, for the first time in about two years, the fundamental price of silver is above the market price, about $0.35 over. … Unless you really like to trade the bleeding edge of a signal change, you may not want to jump in here. Silver’s newfound scarcity could […]

Silver Market Change Report 5 July, 2015

The prices of the metals drooped further this shortened week (Friday was a holiday in the US, as the Fourth of July, Independence Day, occurred on Saturday). The S&P 500 index also fell this week, as did crude oil. Markets all over the world are beginning to feel shocks from Greece. As we write this, […]

Monetary Metals Gold to Hit $64,000 Report: 24 May, 2015

The Bloomberg headline thunders, “Chinese Gold Standard Would Need a Rate 50 Times Bullion’s Price”! The text of the article follows up on this assertion with a price of $64,000 an ounce. Since it’s common Internet Knowledge that China is moving to a gold standard, it’s a fact that gold is going to $64,000. Everyone […]

Monetary Metals Supply and Demand Report: 15 Mar, 2015

Last week, we talked about currencies. This week, let’s look at what the dollar is worth. No, we don’t mean purchasing power, which is just the inverse of consumer prices. Every day, every business that wants to remain alive is busy cutting costs. Real prices are in free fall, and some dollar prices too. For […]

Monetary Metals Supply and Demand Report: 8 Mar, 2015

Last week, we borrowed a phrase from Gandalf in the Lord of the Rings.  We said it felt like, “the deep breath before the plunge”. We added, “We don’t necessarily mean a plunge in the price of gold measured in dollars. It could be a plunge in the price of the dollar. And there are […]