Friday , October 18 2019
Home / Tag Archives: Precious Metals

Tag Archives: Precious Metals

Future Object of Speculation? Precious Metals Supply and Demand

    Spillage The price of gold dropped $16, but the price of silver was all but unchanged. Whereas last week we said: “…the consumer goods stockpile stored in Treasury bonds (to extend our half sarcastic, half tongue-in-cheek analogy) increased this week.” The 10-year note takes another peek at the wide spaces below its 50-day moving average. [PT] Last week, it was the opposite. Consumer goods spilled out of the storage tank of...

Read More »

Zugzwang – Precious Metals Supply and Demand

    Respectable and Not so Respectable Assets The price of gold went up 8 bucks, and the price of silver went up a penny last week. These were not among the capital assets that could be liquidated for greater quantities of consumer goods last week. Nor were equities. A respectable, mother-in-law-proof speculation: the 10-year US treasury note. [PT] However, the consumer goods stockpile stored in treasury bonds (to extend our half...

Read More »

The System Scrapes By – Precious Metals Supply and Demand

    An Accident in Waiting The price of gold dropped $20, and silver 43 cents. For reference, $20 was once worth just about an ounce of gold. Dollar was a unit of measure, a weight of gold equal to 1/20.67 ounce of fine gold. A gold certificate from the time when the dollar still represented a fixed weight of gold [PT] Today, it is an irredeemable currency, defined not as a unit of weight but as a unit of central bank liability which...

Read More »

Curious Events in Risk-Free Collateral-Land – Precious Metals Supply and Demand

  Liquidity Shortage Last week the price of gold rose $28, and silver $0.53. But the prices of the metals was not the big news last week. The price of repo — a repurchase agreement, to sell and repurchase a treasuries — skyrocketed. Banks were thirsty for liquidity, and only cash can quench it. Last week’s “oops” moment in repo land as the overnight general collateral rate briefly soared to 10% (we will soon publish a detailed summary...

Read More »

Why Are People Now Selling Their Silver? Precious Metals Supply and Demand

  Big Moves in Silver Last week, the prices of the metals fell further, with gold -$18 and silver -$0.73. On May 28, the price of silver hit its nadir, of $14.30. From the last three days of May through Sep 4, the price rose to $19.65. This was a gain of $5.35, or +37%. Congratulations to everyone who bought silver on May 28 and who sold it on September 4. The recent move in silver [PT] To those who believe gold and silver are money...

Read More »

A Wild Week – Precious Metals Supply and Demand

  Paying a Premium for a Lack of Default Risk The price action got pretty intense last week! The prices of the metals were up Monday, Tuesday, and Wednesday. But Thursday and Friday, there was a sharp reversal and the silver price ended the week below its close of the previous week. The net speculative position in gold futures has become very large recently – the market was more than ripe for a shake-out. [PT] Silver made a round...

Read More »

A Force Impelling People to Buy – Precious Metals Supply and Demand

    Intense Price Action The price action was pretty intense last week, most of it on Friday. The statement by President Trump, not to mention Fed Chairman Powell’s hint of further rate cuts, impelled people to buy gold and silver, whose prices went up $14 and $0.29. 10-year treasury note yield – plumbing new lows for the move… [PT] Oh, and the interest rate on the 10-year Treasury lost over 5% of its juice on Friday. We said last...

Read More »

A Bubble in Complacency – Incrementum Advisory Board Discussion

  Incrementum Advisory Board Meeting of 31 July 2019 At the end of July the Advisory Board of the Incrementum Fund held its quarterly meeting (a full transcript is available for download at the end of this post). The board was joined by special guest Simon Mikhailovich, a financial market veteran who inter alia co-founded the Toqueville Bullion Reserve. The title of the transcript and this post was inspired by his remarks. Special...

Read More »

Tumbling Interest Rates – Precious Metals Supply and Demand

  An Era of Low Time Preference Last week the price of gold moved up another $16, and the price of silver was up $0.14. 10-year treasury note yield since 1999 – it is almost back at the multi-decade low of 2016. The only other time in history when US treasury yields were this low was in 1944-1945, when the Fed was actively suppressing yields in order to provide cheap financing for the war effort. One year later (from mid 1946 to mid...

Read More »

Retail Holders Sell Their Gold – Precious Metals Supply and Demand

  A Myriad of Reasons to Buy Gold – But Small Holders are Selling Big moves occurred in the prices of the metals last week, with that of gold up $57 and silver $0.77. We have now reached a price of gold (if not silver) not seen since 2013, when it was on the way down. What is causing this sudden spike in price and renewed interest in gold? A well-known depiction of investor emotions over a complete market cycle. Interestingly, it...

Read More »