Tag Archives: gold basis

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Fundamental Developments The prices of the metals shot up last week, by $28 and $0.57. Heavy metals became pricier last week, but we should point out that the stocks of gold and silver miners barely responded to this rally in the metals, which very often (not always, but a very large percentage of the time) is a sign...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Where the Good Things Go Many gold bugs make an implicit assumption. Gold is good, therefore it will go up. This is tempting but wrong (ignoring that gold does not go anywhere, it’s the dollar that goes down). One error is in thinking that now you have discovered a truth, everyone else will see it quickly. And there is a...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Precious Metals Supply and Demand Report The price of gold dropped $24, and that of silver 60 cents this week. This is a far cry from Sep 8, when the price of silver hit $18.21. Since then, it’s been almost all downhill. What happened? Since the beginning of last month, the price of silver had been rising and at the basis...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Back to the Happy Place Amid a Falling Dollar The prices of the metals dropped this week, $24 and $0.38. This could be because the asset markets have returned to their happy, happy place where every day the stock market ticks up relentlessly. Sometimes, happiness is fleeting… - Click to enlarge Dollar Bid Price The...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango.  Fundamental Developments There were big moves in the metals markets this week. The price of gold was up an additional $21 and that of silver $0.30. Will the dollar fall further?As always, we are interested in the fundamentals of supply and demand as measured by the basis. But first, here are the charts of the prices of...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Forking Incentives A month ago, we wrote about the bitcoin fork. We described the fork: Picture a bank, the old-fashioned kind. Call it Acme (sorry, we watched too much Coyote and Road Runner growing up). A group of disgruntled employees leave. They take a copy of the book of accounts. They set up a new bank across the...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango.  Fundamental Developments The price of gold dropped two bucks, and silver two cents. However, it was a pretty wild ride around the time when some information came out from our monetary masters at their annual boondoggle at Jackson Hole. We will show some charts of Friday’s intraday action, below. The overseers of the...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Fundamental Developments Last week he price of gold was up nine bucks, and that of silver 6 cents. These small changes mask the relatively big drop on Tuesday—$13 in gold and $0.48 in silver — and recovery the rest of the week. The gains above previous week occurred on Thursday. Speculators have lately warmed up to...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Bitcoin and Credit Transactions Last week, we said: It is commonly accepted to say the dollar is “printed”, but we can see from this line of thinking it is really borrowed. There is a real borrower on the other side of the transaction, and that borrower has powerful motivations to keep paying to service the debt. Bitcoin...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. A Fork in the Cryptographic Road So bitcoin forked. You did not know this. Well, if you’re saving in gold perhaps not. If you’re betting in the crypto-coin casino, you knew it, bet on it, and now we assume are happily diving into your greater quantity of dollars after the fork. You don’t have a greater quantity of...