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Steam Punk Animals – Precious Metals Supply and Demand

Summary:
Re-Purposing of Tractor Parts in South Dakota   The price of gold was all but unchanged, but the price of silver dropped another 46 copper pennies last week. We came across an article showing pictures of something we have previously described: sculptures made from parts taken from farm tractors. Here is a picture I took: The good old Predator made of tractor parts – looks almost like the real thing! Here is background information on the artist and more pictures of his work. [PT] How much of this is capital destruction, and how much is up-cycling parts from tractors that are used up, we will never know. Fundamental Developments Let us look at the only true picture of the supply and demand fundamentals of gold and silver. But, first,

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Re-Purposing of Tractor Parts in South Dakota

 

The price of gold was all but unchanged, but the price of silver dropped another 46 copper pennies last week.

We came across an article showing pictures of something we have previously described: sculptures made from parts taken from farm tractors.

Here is a picture I took:

Steam Punk Animals – Precious Metals Supply and DemandThe good old Predator made of tractor parts – looks almost like the real thing! Here is background information on the artist and more pictures of his work. [PT]

How much of this is capital destruction, and how much is up-cycling parts from tractors that are used up, we will never know.

Fundamental Developments

Let us look at the only true picture of the supply and demand fundamentals of gold and silver. But, first, here is the chart of the prices of gold and silver.

Steam Punk Animals – Precious Metals Supply and DemandGold and silver priced in USD

Next, this is a graph of the gold price measured in silver, otherwise known as the gold to silver ratio (see here for an explanation of bid and offer prices for the ratio). The ratio went up.

Steam Punk Animals – Precious Metals Supply and DemandGold-silver ratio, bid and offer

Here is the gold graph showing gold basis, co-basis and the price of the dollar in terms of gold price.

Steam Punk Animals – Precious Metals Supply and DemandGold basis, co-basis and the USD priced in milligrams of gold

There’s that rising scarcity (i.e., the co-basis) moving up again. The Monetary Metals Gold Fundamental Price was up $13 this week, to $1,467.

Now let us look at silver.

Steam Punk Animals – Precious Metals Supply and DemandSilver basis, co-basis and the USD priced in grams of silver

We see the same thing in silver.

Except, in silver the market price dropped while scarcity increased. The Monetary Metals Silver Fundamental Price stayed level at $16.71.

 

© 2019 Monetary Metals

Charts by Monetary Metals

Chart and image captions by PT

Dr. Keith Weiner is the president of the Gold Standard Institute USA, and CEO of Monetary Metals. Keith is a leading authority in the areas of gold, money, and credit and has made important contributions to the development of trading techniques founded upon the analysis of bid-ask spreads. Keith is a sought after speaker and regularly writes on economics. He is an Objectivist, and has his PhD from the New Austrian School of Economics. He lives with his wife near Phoenix, Arizona.

 

 

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Steam Punk Animals – Precious Metals Supply and Demand 
 

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Keith Weiner
Keith Weiner is president of the Gold Standard Institute USA in Phoenix, Arizona, and CEO of the precious metals fund manager Monetary Metals. He created DiamondWare, a technology company that he sold to Nortel Networks in 2008. He writes about money, credit and gold. In March 2015 he moved his column from Forbes to SNBCHF.com.

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