Monetary Metals Supply and Demand Report: 22 Feb, 2015

The price of gold dropped another 27 bucks, and that of silver fell a buck eleven. Without picking on anyone we saw a headline this weekend, “Can the Bear Get Any Worse?” Regular readers know that we do not regard it as a gold bear market. We regard it as a dollar bull market. Why? [...]

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6 replies
  1. miamonaco says:


    Why do you feel the value of the dollar will accelerate down soon enough as it still seems the cleanest of the dirty shirts with the yen and euro going nowhere but down?



  2. miamonaco says:

    Also, last week the fundamental price of gold was $80 greater than market and this week, with the cobasis changing little, why is the fundamental price only $10 higher?



  3. johnchew says:

    Do you take COT positioning into account. Specs and money manager are long and commercials heavily short against them–is it any wonder why metals should be declining. Expect lower until the specs get short yet again.

  4. Max Myers says:

    Great great lines about the bull market in the elastic dollar. I love when gold is cheaper to buy with dollars if dollars is what I have, and the same when I buy in RMB. I love the reinforcement of these objective value concepts.

  5. Keith Weiner says:

    Thanks for the comments.

    miamonaco: When I say dollar will fall, I mean as measured in gold. I don’t expect it to fall against the paper currencies (though of course there can be corrections). I did not say the fundamental price of gold was ten dollars over market, but tens of dollars.

    johnchew: Yes, but not by trying to incorporate those numbers. The effects of those actors show up in the basis and cobasis spreads.

    Max: thanks!

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