Tag Archives: gold basis

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Ballistically Yours One nearly-famous gold salesman blasted subscribers this week with, “Gold Is Going to Go Ballistic!” A numerologist shouted out the number $10,000. At the county fair this weekend, we ran out of pocket change, so we did not have a chance to see the Tarot Card reader to get a confirmation. Even if you...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Object of Speculation The prices of the metals fell last week, $22 and $0.24 respectively. It’s an odd thing, isn’t it? Each group of traders knows how gold “should” react to a particular type of news. But they all want the same thing — they want gold to go up. And when it doesn’t, many hesitate to buy. Or even sell. This...

Short and Long Term Forecasts Predicting the likely path of the prices of the metals in the near term is easy. Just look at the fundamentals. We have invested many man-years in developing the theory, model, and software to calculate it. Every week we publish charts and our calculated fundamental prices. However, predicting the outlook for a longer period of time is much harder. The fundamental shows the relative...

Beginning of Post: See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Questions and Answers A reader emailed us, to ask a few pointed questions. Paraphrasing, they are: Who cares if dollars are calculated in gold or gold is calculated in dollars? People care only if their purchasing power has grown. What is the basis good for? Is it just mathematical play for gold...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Grain of Salt Required The price of gold fell $7, and that of silver 24 cents. This was a holiday shortened week, due to Thanksgiving on Thursday in the US (and likely thin trading and poor liquidity on Wednesday and Friday). So take the numbers this week, including the basis, with a grain of that once-monetary commodity,...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contang Reasons to Buy Gold The price of gold went up $19, and the price of silver 42 cents. The price action occurred on Monday, Wednesday and Friday though so far, only the first two price jumps reversed. We promise to take a look at the intraday action on Friday. File under “reasons to buy gold”: A famous photograph by Henri...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. A Different Vantage Point The prices of the metals were up slightly this week. But in between, there was some exciting price action. Monday morning (as reckoned in Arizona), the prices of the metals spiked up, taking silver from under $16.90 to over $17.25. Then, in a series of waves, the price came back down to within...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. New Chief Monetary Bureaucrat Goes from Good to Bad for Silver The prices of the metals ended all but unchanged last week, though they hit spike highs on Thursday. Particularly silver his $17.24 before falling back 43 cents, to close at $16.82. Never drop silver carelessly, since it might land on your toes. If you are at...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Rumors Driving Short Term Price Swings The prices of the metals dropped a bit more this week, -$7 and -$0.16. We all know the dollar is going down, that it is the stated policy of the Federal Reserve to make it go down. We all know that gold has been valued for thousands of years. So why do we measure the timeless metal...

Claim-Less Delirium Yesterday, the Department of Labor announced that initial jobless claims dropped. Quite a lot. So naturally, markets reacted. The stock market began to rise. The euro rose, at least for a while. Unemployment Claims Index, Aug 1998 - Oct 2017Initial weekly unenjoyment claims over the past 20 years. Can you say “contrary indicator”? - Click to enlarge The most recent palpitations in this measure...