Tag Archives: silver ratio

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. The Cost of Carry The prices of both metals were down this holiday-shortened (Labor Day in the US) week, especially on Friday. The decline corresponded to a spike in interest rates. Of course everyone watched the action of the stock market on Friday. Whatever the proximate cause, the root is credit. When borrowing to...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. The Lighthouse Problem Measured in gold, the price of the dollar hardly budged this week. It fell less than one tenth of a milligram, from 23.29 to 23.20mg. However, in silver terms, it’s a different story. The dollar became more valuable, rising from 1.58 to 1.61 grams. Most people would say that gold went up $6 and...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. The Famous Buffett Quote The prices of the metals didn’t change much this week. We thought we would take this opportunity to quote Warren Buffet. A comment he made at Harvard in 1998 earned him the scorn of the gold community. “Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Bubble Conditions The price of gold was down about fifteen Federal Reserve Notes this week. The price of silver was down sixty-two copper-plated zinc pennies. Is the Federal Reserve Note a suitable instrument with which to measure gold? Can one really use debased pennies – which aren’t even made of the base metal copper...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. An image from the future: the US dollar, which one of these days is going to sink. Alas, there is many a slip ‘twixt the cup and the lip… Image via pinterest.com The Long Term vs. Trading Ideas The price of gold was up about thirty bucks this week. The price of silver was up almost seventy cents.  Last week, a reader...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango One Cannot Trade Based on the Endgame The prices of the  metals were down again this week, -$15 in gold and more substantially -$0.57 in silver. Stories continued to circulate this week, hitting even the mainstream media. Apparently gold is going to be priced at $10,000. Jump on the bandwagon now, while it’s still cheap...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Amerexit and Brexit… Doubts About Debt This was a shortened week, due to the American holiday of July 4, celebrating the start of the war that lead to “Amerexit”, 240 years ago. The prices of the metals were up this week, +$25 in gold and +$0.48 in silver. The gold to silver ratio dropped a fraction of a point, showing...

He should have known… (the cartoon shows a list of polls of “Dewey wins by landslide” or “Trump will never win the primaries” quality…) Markets Blindsided by Brexit The big news this week was that the British voted to exit the European Union. This was not the outcome expected by pundits, or the polls. “Risk on” assets were relentlessly bid up prior to the vote. For example, S&P 500 index futures had closed the...

It was just a thought…. Cartoon by Bob Rich Loose Monetary Policy Remains in Place Last week, we asked where then will silver go. Well, the price moved around this week, dipping on Thursday but then rebounding sharply on Friday. It closed up 13 cents from last week. The price of gold rose $24. This week, the Federal Reserve announced that it will not hike rates. Most economists (and traders) have long been expecting a...

Silver gets the Saruman question…(see further below) Photo credit: New Line Cinema Precious Metals Surge The price of gold bumped up thirty bucks, and that of silver about one buck. Is this liftoff — when the dollar falls sharply, and the price of each metal in dollar terms skyrockets? Is this the denoument when the gold bug does not get rich, because although his net worth measured in dollar is massively up, the...