Tag Archives: Gold co-basis

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Input Data Errors Dear Readers, I owe you an apology. I made a mistake. I am writing this letter in the first person, because I made the mistake. Let me explain what happened. I wrote software to calculate the gold basis and co-basis (and of course silver too). The app does not just calculate the near contract. It...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Orders of Preference Last week, we discussed the growing stress in the credit markets. We noted this is a reason to buy gold, and likely the reason why gold buying has ticked up since just before Christmas. Many people live in countries where another paper scrip is declared to be money — to picture the absurdity, just...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Careening from Crisis to Crisis Back in the old days, homes had fuse boxes. Today, of course, any new house is built with a circuit breaker panel and many older homes have been upgraded at one time or another. However, the fuse is a much more interesting analogy for the monetary system. When a fuse burned out, it was...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Probabilistic Technical Analysis vs. the Mechanics of Arbitrage We talk about the supply and demand fundamentals every week. We were surprised to see an article about us this week. The writer thought that our technical analysis cannot see what is going on in the market. We don’t want to fight with people, we prefer to...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango.  Bitcoin Mania The price of gold has been rising, but perhaps not enough to suit the hot money. Meanwhile, the price of Bitcoin has shot up even faster. From $412, one year ago, to $1290 on Friday, it has gained over 200% (and, unlike gold, we can say that Bitcoin went up — it’s a speculative asset that goes up and down...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Gold Scarcity Intensifies Further Last week (a holiday-shortened week, as Monday was President’s Day in the US), the price of the dollar fell. In gold, it fell almost half a milligram to 24.75mg, and prices in silver it dropped 30mg, to 1.7 grams of the white monetary metal. Looks good… and since last week, costs...

  See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Fundamental Developments Last week, the prices of the metals mostly moved sideways. There was a rise on Thursday but it corrected back to basically unchanged on Friday. This will again be a brief Report, as Monday was a holiday in the US. Below, we will show the only true picture of the gold and silver supply and demand...

 See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Silver Is Pushed Up Again This week, the prices of the metals moved up on Monday. Then the gold price went sideways for the rest of the week, but the silver price jumped on Friday. Is this the rocket ship to $50? Will Trump’s stimulus plan push up the price of silver? Or just push silver speculators to push up the price,...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Gold and Silver Divergence – Precious Metals Supply and Demand Last week, the prices of the metals went up, with the gold price rising every day and the silver price stalling out after rising 42 cents on Tuesday. The gold-silver ratio went up a bit this week, an unusual occurrence when prices are rising. Everyone knows...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Silver Gets Frisky Last week, the prices of the metals had been up Sunday night but were slowly sliding all week — until Friday at 7:00am Arizona time (14:00 in London). Then the price of silver took off like a silver-speculator-fueled-rocket. It went from $16.68 to $17.25, or 3.4% in two hours. What does it mean? We...