The price of gold jumped a little from Friday to Tuesday (Monday was a holiday in the US) and then went sideways. The price of silver continued to rise through Thursday, up about half a buck. This means that the ratio of gold to silver fell substantially this week. As everyone knows, a falling ratio [...]
In all the data you are going through do you have any analysis / document that would describe the action of “normal joe” facing evolution of the price of Gold in different countries .
Let’s say to illustrate my question : when price of gold go down then people sell the real stuff in Occident but not the case somewhere else.
Physical buyers/hoarders are just able to put a floor on the gold/silver prices but the price has been done by the western speculators (COMEX especially) for decades. Nothing new here…
Rueffallais: It’s a constantly-evolving dynamic. There are times when the marginal seller is group X and they behave a certain way when the price goes up or down. And then at other times, it changes.
This is the problem with the static stories: “the Chinese/Indians/whomever are buying when the price dips.”
Think marginal seller or marginal buyer. Price is moved by action at the margin. Also, the marginal actor is a role, not a particular person or group. who holds that role changes over time.
This is the basis (pun intended) of the basis theory. 🙂
Keith,
In all the data you are going through do you have any analysis / document that would describe the action of “normal joe” facing evolution of the price of Gold in different countries .
Let’s say to illustrate my question : when price of gold go down then people sell the real stuff in Occident but not the case somewhere else.
Thanks a lot for your help and your great job
Physical buyers/hoarders are just able to put a floor on the gold/silver prices but the price has been done by the western speculators (COMEX especially) for decades. Nothing new here…
Rueffallais: It’s a constantly-evolving dynamic. There are times when the marginal seller is group X and they behave a certain way when the price goes up or down. And then at other times, it changes.
This is the problem with the static stories: “the Chinese/Indians/whomever are buying when the price dips.”
Think marginal seller or marginal buyer. Price is moved by action at the margin. Also, the marginal actor is a role, not a particular person or group. who holds that role changes over time.
This is the basis (pun intended) of the basis theory. 🙂