Basic Reports

Why a Yield on Gold Matters

Why a Yield on Gold Matters

To listen to the audio version of this article click here Picture, if you can, a world in which gold circulates as the medium of exchange. People pay for everything, from groceries to rent, in gold. Employers pay wages in gold. Productive enterprises borrow gold to finance everything from food production to constructing apartment buildings. […]

Why Isn’t Gold Going Up with Inflation?

Why Isn’t Gold Going Up with Inflation?

To listen to the audio version of this article click here Many voices in the gold community are making a simple point. Look at the prices of oil, copper, and other commodities. They are skyrocketing. The mainstream explanation—shared by Keynesians, Monetarists, and many Austrians—is that the cause of this skyrocketing is the increase in the quantity of […]

Transitory Inflation and Useless Ingredients

Transitory Inflation and Useless Ingredients

To listen to the audio version of this article click here Can you remember back to when you were two or three years old? Toddlers often think that there are little people inside the TV (or maybe this was only true when the TV was about as deep as it was wide—and maybe kids today […]

Silver Crash Makes Silver Trash?

Silver Price Crash September 29, 2021

The price of silver dropped a dollar, or over 4% on Wednesday. Some voices in the precious metals press want you to think that there is only one conceivable cause. We should coin a term for this form of logical fallacy: argumentum ad ignorantia. This is an argument of the form: “the cause must be […]

Lower Prices, Stronger Fundamentals

Lower Prices, Stronger Fundamentals

Since last week’s Report, the price action has been downwards. The price of gold dropped about $50, and that of silver $1.35. The gold-silver ratio rose to its highest level since the end of 2020.   Technical chartists are either throwing in the towel, or tearing their hair out. We advise against tearing one’s hair […]

Gold and Silver Price Fundamentals Update

Gold and Silver Price Update

This time, we start with the gold-silver ratio. Let’s revisit something we said on 23 August: “…the supply and demand fundamentals of silver are stronger here than they have been since the Covid crisis. … physical silver is scarcer than gold.” This corresponds to the peak where we have drawn an arrow on the gold-silver […]

How Do They Get Away With It?

How do they get away with it?

Picture, if you will, a government that deliberately inflicts bad policy on the people. I know this sounds crazy, and could never happen, but please bear with me. Suppose the government criminalizes hiring someone who produces less than an arbitrary threshold. Or it forces the closure of all businesses deemed to be non “essential”. Or […]

Where Does Your Profit Come From?

Where does your profit come from

To listen to the audio version of this article click here A few recent articles bring to the public’s awareness that wealthy investors are preferring not to sell their assets, and thereby pay capital gains taxes. Instead, they borrow against them, on margin. This reminds me of an experience I had some years back. I […]

Where do gold and silver prices go from here?

Where do gold prices go from here

One way to look at the price of gold, is that it dropped from its high around $1,900 in early June. Another way is to zoom out, and look at the big picture. Here is a 10-year chart of gold and silver prices. For over four years, after the peak around $1,900 ten years ago […]

What Trick did Tricky Dicky Pull 50 Years Ago Today?

What Trick did Tricky Dicky Pull 50 years ago today?

Sometimes, bad luck can strike. But other times, a catastrophe comes from a series of bad decisions, each the reaction to the consequences of the previous one. On August 15, 1971, President Nixon decreed that the US dollar would no longer be redeemable for the gold owed, even to foreign governments. This bad decision is […]