Tag Archive: gold price

Gold Leads the Way for Silver

Last week we wrote about the gold to silver ratio. Our points were that it measures the price of one metal against the other, just as we use the dollars per ounce to measure daily metals prices, and just as we use ounces per Corvette to measure purchasing power preservation.

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The Changing Role of Gold

In our post on August 11 titled End of an ERA: The Bretton Woods System and Gold Standard Exchange, we discussed the significance of then-President Nixon’s action of closing the gold window thereby ending the Bretton Woods Monetary system. Under the Bretton Woods monetary system, central banks could exchange their US dollar reserves for gold. This also ended the gold fixed price of US$35 per ounce. This week we explore the two...

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Basel III’s Effect on Gold and Silver

There is sometimes a tendency to confuse ends and means. For example, in traveling through an airport there is extensive inspection of passengers. Before you are allowed to board an airplane, you must go through a process that is intrusive and increasingly invasive.

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Is Gold Still in a Bull Market?

Today Gareth Soloway, Chief Market Strategist of InTheMoneyStocks.com talks about his technical analysis of gold and silver as well as giving us insights in to the recent moves in Bitcoin and the stock markets. Recent comments from the Federal Reserve Chairman Jerome Powell indicated that they may need to raise rates in 2023 (2 years away!). This is primarily due to the continued excessive money printing fueling a surge in inflation. Inflation is...

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Demand for Gold is Expected to Grow Exponentially in 2021

The difference between physical gold investing and ETF investing was stark in the first quarter 2021 according to the World Gold Council’s Gold Demand Trends data released last week. Before focusing in on investment demand below a few notes on overall gold demand in the first quarter.

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Is The Bull Market Over For Gold?

Gold has not made new highs in many months. Gold peaked last year at US$2067 on August 6. The 7 month down leg of more than 18% as been deep enough and long enough that some commentators are now saying that the bull market has now turned to a bear market for gold.  Losing faith is understandable because falling prices feel bad. But this week we want to show that current prices may not reflect reality.

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Gold to $2,300 and Silver to $35 by Year End – 2021, the Year the Barometer Explodes?

The US dollar set for further dramatic declines?Negative interest rate policy spreadingIncreased global liquidity in attempt to ignite a recoveryDemocrats’ win paves way for massive stimulus packagesGold and silver set to rally strongly in a perfect storm.

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“We are expecting a new wave and we’re prepared for it.”

Interview with Robert Hartmann, Co-Owner ProAurum, Over the last couple of months, we’ve witnessed unprecedented changes in the global economy, in the markets and in our societies. The corona crisis and the governmental measures that were introduced had a dramatic and direct effect on all of us, as investors and as citizens. 

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Monetary Metals Gold Brief 2020

We apologize for not posting articles during January. We have been busy, and going forward will publish a separate Market Report every Monday morning plus macroeconomics essays later in the week, as time permits.

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Wealth Consumption vs. Growth – Precious Metals Supply and Demand

GDP – A Poor Measure of “Growth” Last week the prices of the metals rose $35 and $0.82. But, then, the price of a basket of the 500 biggest stocks rose 62. The price of a barrel of oil rose $1.63. Even the euro went up a smidgen. One thing that did not go up was bitcoin. Another was the much-hated asset in the longest bull market. We refer to the US Treasury.

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Open Letter to John Taft, Report 17 Dec

Dear Mr. Taft: I eagerly read your piece Warriors for Opportunity on Wednesday, as I often do about pieces that argue that capitalism is not working today. You begin by saying: “Financial capitalism – free markets powered by a robust financial system – is the dominant economic model in the world today. Yet many who have benefited from the system agree it’s not working the way it ought to.”

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The End of an Epoch, Report 8 Dec

“There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

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Money and Prices Are a Dynamic System, Report 1 Dec

The basic idea behind the Quantity Theory of Money could be stated as: too much money supply is chasing too little goods supply, so prices rise. We have debunked this from several angles. For example, we can use a technique that every first year student in physics is expected to know. Dimensional analysis looks at the units on both sides of an equation.

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Raising Rates to Fight Inflation, Report 24 Nov

Physics students study mechanical systems in which pulleys are massless and frictionless. Economics students study monetary systems in which rising prices are everywhere and always caused by rising quantity of currency. There is a similarity between this pair of assumptions. Both are facile. They oversimplify reality, and if one is not careful they can lead to spectacularly wrong conclusions.

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The Perversity of Negative Interest, Report 17 Nov

Today, we want to say two things about negative interest rates. The first is really simple. Anyone who believes in a theory of interest that says “the savers demand interest to compensate for inflation” needs to ask if this explains negative interest in Switzerland, Europe, and other countries. If not, then we need a new theory (Keith just presented his theory at the Austrian Economics conference at King Juan Carlos University in Madrid—it is...

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What’s the Price of Gold in the Gold Standard, Report 10 Nov

Let’s revisit a point that came up in passing, in the Silver Doctors’ interview of Keith. At around 35:45, he begins a question about weights and measures, and references the Coinage Act of 1792. This raises an interesting set of issues, and we have encountered much confusion (including from one PhD economist whose dissertation committee was headed by Milton Friedman himself).

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Targeting nGDP Targeting, Report 3 Nov

Not too long ago, we wrote about the so called Modern Monetary so called Theory (MMT). It is not modern, and it is not a theory. We called it a cargo cult. You’d think that everyone would know that donning fake headphones made of coconut shells, and waving tiki torches will not summon airplanes loaded with cargo. At least the people who believe in this have the excuse of being illiterate.

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Bitcoin Myths, Report 27 Oct

Keith gave a keynote address—the only speaker with an hour to cover his topic—at the Gold and Alternative Investments Conference in Sydney on Saturday. Said topic was the nature of money. “Money is a matter of functions four: a medium, a measure, a standard, a store.”

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Wealth Accumulation Is Becoming Impossible, Report 20 Oct

We talk a lot about the falling interest rate, the too-low interest rate, the near-zero interest rate, the zero interest rate, and the negative interest rate. Hat Tip to Switzerland, where Credit Suisse is now going to pay depositors -0.85%. That is, if you lend your francs to this bank, they take some of them every year. Almost 1% of them.

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Motte and Bailey Fallacy, Report 13 Oct

This week, we will delve into something really abstract. Not like monetary economics, which is so simple even a caveman can do it. We refer to a clever rhetorical trick. It’s when someone makes a broad and important assertion, in very general terms. But when challenged, the assertion is switched for one that is entirely uncontroversial but also narrow and unimportant.

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