Monetary Metals Supply and Demand Report: 16 Feb, 2014

The dollar dropped a lot more this week than it has in any one week for a long time. Measured conventionally, the gold price spiked $51, and the silver price by $1.47. Gold owners have 4% more dollars, and silver owners have 7.4% more dollars. However, those dollars are worth less. How much less? To [...]



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7 replies
  1. cj says:

    Thanks Kieth
    How might the access to credit dry up as you say in this report..Do you mean interest rates rising. Might that drive people who don’t buy on credit (Indians and Chinese more in to metals)

  2. Greg Jaxon says:

    Hey Keith: When you started publishing this analysis in 2013, temporary backwardation was rampant and various bloggers took positions on what it meant and how to define it properly. Yours is, of course definitive ;-), but would we be wrong in thinking that the bullion banks et al are reading your publications & using the info to better match the physical supply to the foreseeable redemptions of futures contracts? It appears temporary backwardation has subsided – which could partly be due to the beneficial effects of published measurements. Or do you think that the $85B/mo QE that was just being introduced at the peak of the gold market crisis might have tamed the tendency to drift into backwardation earlier and earlier?

  3. Keith Weiner says:

    Thanks for your comments.

    cj: A few defaults could do it.

    Greg: I am sure some are reading, but I don’t think that likely has anything to do with it. I think demand for physical metal–especially silver–has been falling. Don’t worry, backwardation will come back with a vengeance soon enough. No force on earth can stop it, or plate tectonics on the Earth.

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