Tag Archives: Gold

A Companion Update to this Year’s “In Gold We Trust” Report Our good friends Ronnie Stoeferle and Mark Valek of Incrementum AG have just published a new chart book, which recaps and updates charts originally shown in this year’s 10th anniversary edition of the “In Gold We Trust” report and provides an overview of recent developments relevant to the gold market. The chart book can be downloaded in PDF form via the...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Purveyors of Economic Stability It’s almost like magic. The Fed can say something, or in the case of this Wednesday it can say nothing, and gold and especially silver get a boost of rocket fuel. Actually, the Fed said both yes to rate hikes—in the future—and no to a rate hike now. This was good, if not for people, at...

While gold prices may not fall back to their end-2015 levels, there are few compelling reasons for a fresh acceleration in the near term. After a strong performance in the first half of this year, gold has been moving within a range of USD1300- USD1375 per troy ounce. While physical supply and demand favour a gradual rise in gold prices over time, some of the main drivers of investment demand (financial stress, inflation, real interest rates, the USD) do not suggest significant upside...

It’s been a good year for gold. Gold spot prices hit $1,360 per ounce in early August, up 28% percent since the beginning of the year, buoyed by low interest rates and more recently, demand from investors seeking a safe haven from Brexit-related economic uncertainty. But for equities-minded investors, it’s worth considering the miners behind the metal. Gains by gold mining stocks have outpaced those of gold prices, with the NYSE Arca Gold Miners Index up more than 125% percent...

  A Glorious Day What a glorious day for Britain and anyone among you who continues to believe in the ideas of liberty, freedom, and sovereign democratic rule. The British people have cast their vote and I have never ever felt so relieved about having been wrong. Against all expectations, the leave camp somehow managed to push the referendum across the center line, with 51.9% of voters counted electing to leave the...

Many investors still think about gold as if it were money.  Economists identify three functions of money: store of value, means of exchange, and a unit of account. It can be a store of value, but the price fluctuates compared with other forms of money, or other commodities, like oil or silver.  Some argue that it is a store of value because of the limited supply, but that argument applies to many other goods, including commodities and real estate (which Mark Twain said you have to...

A Loss of Momentum Photo credit: R.P. Visual The price of gold moved down slightly this week, while that of silver dropped more substantially—1.9%. We don’t see much decrease in the enthusiasm yet from this minor setback. This was a shortened week due to the May Day holiday outside the US. Let’s look at the only true picture of supply and demand fundamentals. Gold and silver prices. First, here’s the graph of the metals’ prices. Gold and silver prices – click to enlarge....

  The Metals Take Off Photo via sprottmoney.com The price of gold shot up over $60 this week. The price of silver moved up proportionally, gaining over $0.85. The mood is now palpable. The feeling in the air is that of long suffering suddenly turned to optimism. Big gains, if not the collapse of the price-suppression cartel, are now inevitable. The headlines and articles, screaming for gold to hit $10,000 to $50,000, are pervasive. Today we won’t dwell on our favorite point that if the...

The Swiss National Bank has achieved a profit of 5.7 billion CHF in Q1/2016. The total yield on assets per annum was 3.4%.The main contribution comes from gold with price change of 10% in this quarter, hence a total yield of 48%.The total yield on debt was positive with +0.2% thanks to negative interest rates.The deflationary environment let to rising bond prices. Bonds, make up 74% of the SNB portfolio. Here the details of our calculation: Position Total Positionin bn CHF % of Total...

Macroview After hitting a low point at the end of 2015, fundamentals point to a rise in gold prices--but market conditions suggest the upside potential remains limited Read the full report here After the hefty gains made by gold this year, the attached Flash Note examines what might lie ahead for the precious metal by analysing the five key underlying drivers of gold prices: financial stress, inflation, real interest rates, the US dollar and supply and demand. Our conclusions are as...