Thursday , August 13 2020
Home / Tag Archives: Chart Update

Tag Archives: Chart Update

US Money Supply – The Pandemic Moonshot

    Printing Until the Cows Come Home… It started out with Jay Powell planting a happy little money tree in 2019 to keep the repo market from suffering a terminal seizure. This essentially led to a restoration of the status quo ante “QT” (the mythical beast known as “quantitative tightening” that was briefly glimpsed in 2018/19). Thus the roach motel theory of QE was confirmed: once a central bank resorts to QE, a return to “standard...

Read More »

Gold Stocks – A Show of Strength

  Gold Sector Outperforms Broad Market The gold sector is in an uptrend since September 2018. The initially rather labored move accelerated after a secondary low was established in May 2019 and the 50-day and 200-day moving averages were breached for the second time. Last week the two moving averages were once again overcome in the course of the post-crash rebound. Here is a chart showing the entire move since 2018: After a rather...

Read More »

Credit Markets – The Waiting Game

    Everything and the Kitchen Sink After the first inter-meeting rate cut in early March, we opined that further rate cuts were a near certainty and that “not-QE” would swiftly morph into “QE, next iteration” (see Rate Cutters Unanimous for the details). As it turned out, the monetary mandarins did not even wait for the official FOMC meeting before deciding to throw everything and the kitchen sink at the markets. Not only were rates...

Read More »

Silver Backwardation Returns – Precious Metals Supply and Demand

  Big Moves, Widening Spreads The big news this week was the drop in the prices of the metals (though we believe that it is the dollar which is going up), $57 and $1.81 respectively. Despair at the Unjustly Injured Gold Bugs Anonymous meeting… [PT] Of course, when the price drops the injured goldbugs come out. We have written the authoritative debunking of the gold and silver price suppression conspiracy here. We provide both the...

Read More »

US Stock Market  – Sentiment and Positioning

  Market Drivers The recent outbreak of a dangerous respiratory illness caused by a new Corona virus in China was widely blamed for the stock market sell-off on Monday last week. It is undoubtedly true that the epidemic has the potential to severely disrupt economic activity, although it is too early to come to a definitive conclusion about that. Be that as it may, the event actually serves as an excellent example illustrating that the...

Read More »

Opportunities in the Gold Exploration Sector

    An Unloved Sector We rarely discuss individual stocks in these pages, but we make an exception now and then when we spot exceptional opportunities. This time the reason is actually more mundane: the vast majority of gold exploration stocks failed to benefit from the rally in precious metals prices last year. As a result many of them came under even greater pressure in the tax loss selling season at the end of the year. We made a list...

Read More »

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. BofA Merrill Lynch high yield master II option-adjusted spread: on Dec. 23...

Read More »

The Strongest Seasonal Advance in Precious Metals Begins Now

  Plans and Consequences You are probably already getting into the holiday spirit, perhaps you are even under a little stress. But the turn of the year will soon be here – an occasion to review the past year and make plans for the new one. Many people are doing just that – and their behavior is creating the strongest seasonal rally in the precious metals markets. Anonymous industrial stackers showing off their freshly purchased silver...

Read More »

Eulogies for a Central Planner Reviewed – Precious Metals Supply and Demand

  A Critical Appraisal of a Hero of Central Monetary Planning We apologize for publishing this Report late. We have been very busy developing the business. Last week the price of gold moved up $16, and that of silver $0.39. Almost two groceries leaked out of that store of value par excellence, bitcoin. But hey, stocks are up! We admit to having a soft spot for the politically incorrect Paul Volcker. He frequently expressed bemusement...

Read More »

Steam Punk Animals – Precious Metals Supply and Demand

  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...

Read More »