Tag Archives: 6a) Gold & Monetary Metals

When will precious metals markets finally make their move? It’s a question that has frustrated many investors in 2021. Gold and silver prices have remained stubbornly rangebound for the past several months. There is no way to know exactly when this consolidation period will end. Long-term investors would be wise to hold their core positions regardless of market conditions (and grow them when feasible). However, there are signs both technical and fundamental that...

Gold and silver price actions have been the opposite of dramatic for months now, they have been boring. In the last 100 days, gold has moved sideways in the US$100 range between $1725 and $1825. Silver had a similar experience moving in a US$5 range between $21.50 and $26.50. These ranges are quite small when compared to exciting moves in Tesla shares and cryptocurrencies such as Shiba! Some people think that being boring this year means we should not own the...

Picture, if you can, a world in which gold circulates as the medium of exchange. People pay for everything, from groceries to rent, in gold. Employers pay wages in gold. Productive enterprises borrow gold to finance everything from food production to constructing apartment buildings. In other words, picture a world where there’s abundant opportunities to earn a yield on gold and finance productive businesses in gold. What Happened to Gold After the Gold Standard? It...

Many voices in the gold community are making a simple point. Look at the prices of oil, copper, and other commodities. They are skyrocketing. The mainstream explanation—shared by Keynesians, Monetarists, and many Austrians—is that the cause of this skyrocketing is the increase in the quantity of what is called “money”.  The price of gold has not been going up. The inference is that it should be going up (note the word “should” is very dangerous in trading). The...

Why do Central Banks want higher inflation? The debt ceiling debate in U.S. Congress and related political nonsense brings even more to light the exponential growth in US federal government debt. US government debt has doubled in the 10 years since the last major debacle Congress created over raising the debt ceiling back 2011. The debate and Congress’s unwillingness to increase the limit back in August 2011 resulted in declining equity markets. It also resulted in...

Yield. It’s on the tip of every investor’s tongue, but it’s much harder to find than it used to be. A long time ago, in a galaxy far, far away (like the early 1980’s) one could simply open a savings account, purchase a CD or US 10-year notes, and earn between 7% to 14%. The idea of earning 14% on treasurys seems the stuff dreams are made of. And you must be dreaming if you think you can find that kind of yield today. Interest rates are at zero, near zero, or negative...

Ray Dalio made waves earlier this year when he acknowledged that Bridgewater bought an undisclosed amount of bitcoin. In a recent interview, however, Dalio made it clear that his love for gold is still greater. “If you put a gun to my head, and you said, ‘I can only have one,’” says Dalio. “I would choose gold.” (Source of Quote) We agree with Dalio’s decision to choose gold over bitcoin, but we think it’s high time that he explores some better ways of owning gold....

This week’s episode of the Gold Exchange Podcast explores the idea of profits, and why it matters how you get them. Much of the financial world has confused the idea of profit with price appreciation. Or as we like to say, they confuse investment with speculation. Investment is deploying capital productively in a business for a yield. Speculation is betting one’s capital on an asset price rising. There’s a reason why this confusion exists. Central Banks have...

Monetary Metals CEO Keith Weiner was back on the Palisades Gold Radio podcast being interviewed by Tom Bodrovics. Keith revealed one key feature that gold has, which bitcoin does not. [embedded content] First, Keith discusses how economists and experts tend to say the strangest things and most of their statements don’t pass basic scrutiny, what Keith calls the “sniff test”. Gold has been accumulated for the last 5000 years. As a result physical scarcity is not...

In our post on January 28, 2021 “Gold, The Tried-and-True Inflation Hedge for What’s Coming!” we outlined four reasons that we expect higher inflation over the next several years. The brief bullet points are: Money Supplies have risen dramatically Commodity Prices are rising again Reduced Globalization as ‘Made at Home’ policies are proliferating Pent up demand Headlines such as this one last week from Bloomberg “Inflation gauge Hits Highest Since 1991 as Americans...