Monetary Metals Supply and Demand Report: 12 Jan, 2014

On Friday morning, the Non-Farm Payroll report was released. Instantly, the euro spiked 90 cents, silver spiked 44 cents, and every other asset class reacted. Was this buying of gold and silver by hoarders, who decided to raise their bid by 2%? Or was it speculators using leverage to trade their tired Quantity Theory of [...]

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4 replies
  1. GeneMcm says:

    I suggest that, for gold, you look at the gold to oil ratio. Over 100 years, it’s pretty steady (plus or minus 20%) at 14. The price of oil is directly related to demand. The hypothesis is that the suppliers of oil are indifferent between holding gold or holding oil, at the ratio.

    Check it out.

    Gene, PhD economic

  2. crissman says:


    Thanks so much for your patient and persisntent efforts to educade the ‘great unwashed’, myself included, on the significance of the basis and co-basis metrics with regard to the gold and silver markets.

    If I take the time to read, and re-read, your posts, I can end up thinking that I have understood what you are saying.

    Then, the next time I tune in on you, I sem to need to begin the process all over again. This is NOT your fault, but mine.

    I attended Prof. Fekete’s sessions in Canberra back in 2011 (I think it was) and thought at the time that I understood what he was getting at with the ‘basis’ in futures prices. However, you go beyond what he was trying to get across at that time.

    I will perserver. Keep trying, and I just may really ‘get it’ at some point.

    L. Crissman

  3. bleubelle says:

    “. Could there be more such moves, especially if the charts begin to show momentum? Sure. Would we bet on it? Not with real money, nor even with Federal Reserve notes.”

    The last sentence is brilliant. :))

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