Monetary Metals Supply and Demand Report: 25 Jan, 2015

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 [...]



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3 replies
  1. Rueffallais says:

    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

    • RD says:

      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…

    • Keith Weiner says:

      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. 🙂

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