Monetary Metals Supply and Demand Report: 15 Feb, 2015

The price of gold dropped another $5 to $1,229, but the price of silver bounced back over 60 cents to $17.34. What gives? How could this be? The conventional wisdom is that silver does whatever gold does, only more. Here is a graph of the open interest in the futures markets for both metals. As [...]

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5 replies
  1. mongoose33 says:

    Keith, assuming I’m reading this right, you have a fundamental price in dollars for gold at roughly $1200; you have a fundamental price in dollars for silver at roughly $15.

    Using those numbers, that places a “fundamental” number on the gold/silver ratio of about 80. Would you agree? Is there something I’m not seeing here?

    Is this the kind of analysis you use to forecast/predict/guess what the future gold/silver ratio might be?

      • mongoose33 says:

        Yes, a typo, but the point still held, I hope. 🙂

        If I can actually figure out what you’re going to say before you say it, I won’t have to read what you say! J/K.

        I appreciate your weekly message, and you remind me, in style, of Robert Prechter back in the old days. He always seemed to me to let his numbers do the talking rather than proselytizing. That always made him more credible in my eyes, though I wasn’t always in agreement with either his conclusions or his theory.

  2. johnchew says:

    Do you every factor COT into your analysis.?For example, three weeks ago, Spec were heavily long while commercials were short–as lopsided as at previous spike tops. Now we see the price move the other way as specs sell.

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