Sideways Silver Market

Fundamental Developments – Scarcity of Precious Metals Increases Slightly

Not much price action at the metals tables in the casino. Gold -$7, and silver -$0.10. Gold to silver ratio unchanged.

This will be a brief report, due to the rigors of travel this week.

Gold and silver prices

Read on for the only true picture of the fundamentals of the monetary metals. But first, here’s the graph of the metals’ prices.

Gold-silver ratio

Next, this is a graph of the gold price measured in silver, otherwise known as the gold to silver ratio.

For each metal, we will look at a graph of the basis and co-basis overlaid with the price of the dollar in terms of the respective metal. It will make it easier to provide brief commentary. The dollar will be represented in green, the basis in blue and co-basis in red.

Gold basis and co-cobasis an the dollar price

Here is the gold graph.

Gold’s scarcity (i.e., the red line, co-basis) is up this week, though the price of the dollar (i.e. green line, the inverse of the price of gold) didn’t move much.

Silver basis and co-basis and the dollar price

Now let’s look at silver.

The silver co-basis rose as well, but not as pronounced as in gold.