Sideways Silver Market, Report 16 October, 2016

Not much price action at the metals tables in the casino. Gold -$7, and silver -$0.10. Gold to silver ratio unchanged.

This will be a brief report, due to the rigors of travel this week.

Read on for the only true picture of the fundamentals of the monetary metals. But first, here’s the graph of the metals’ prices.

The Prices of Gold and Silver

Next, this is a graph of the gold price measured in silver, otherwise known as the gold to silver ratio.

The Ratio of the Gold Price to the Silver Price

For each metal, we will look at a graph of the basis and cobasis overlaid with the price of the dollar in terms of the respective metal. It will make it easier to provide brief commentary. The dollar will be represented in green, the basis in blue and cobasis in red.

Here is the gold graph.

The Gold Basis and Cobasis and the Dollar Price

Gold’s scarcity (i.e. red line, cobasis) is up this week, though the price of the dollar (i.e. green line, the inverse of the price of gold) didn’t move much.

Now let’s look at silver.

The Silver Basis and Cobasis and the Dollar Price

The cobasis rose, but not so pronounced as in gold.


© 2016 Monetary Metals

11 replies
  1. tjmmz9843 says:

    If I understand: The physical market got tighter, while prices didn’t go up (much). Implies physical buying and futures selling? about equally? So, Keith’s “fundamental” prices would have risen a little?

  2. tjmmz9843 says:

    Keith: Which silver contract? Please note that the graph says “Sep”. (September contract, should be impossible now in October, right? Last week’s graph said the same.)

  3. TomBlackstone1 says:

    I’m reading that the price of gold ETF shares fell slower than spot contracts did, forcing the ETFs to take delivery of gold. This might explain why the Cobasis rose this past week.

  4. mhabner says:

    You’ve probably been asked this many times before but is there any reasonably simple way that the average man can get this basis and cobasis data for himself, to have a tinker with? The lbma GOFO and SIFO used to be at least a half decent proxy, but since their withdrawal from publication there is zero information available, apart from attempting to calculate it from first principles and raw data.

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