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Tag Archives: Precious Metals

The Gold – Money Supply Correlation Report

  A Spot of Irrational Exuberance There were some fireworks last week. Gold went up on Tuesday (it was a shortened week due to Easter Monday), from a low of $1,215 to $1,244 over the day, a move of over 2 percent. Silver moved from $15.02 to $15.44, almost 3 percent. What happened on Tuesday to drive this move down in the dollar? (We always use italics when referring to gold going up or down, because it is really the dollar going down or up).   A bit of verbal...

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Relative Strength in Silver

  Up and Down Gold went down (as the muggles would measure it, in dollars). It dropped almost 40 bucks. Silver fell almost 60 cents. Since silver fell proportionally farther than gold, the gold-silver ratio went up. Why do we keep reiterating that gold goes nowhere, that it’s the dollar which mostly goes down over long periods of time and sometimes up as in 2011-2015? Why do we insist that the dollar be measured in gold, and that gold cannot be measured in dollars the way a steel...

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Gold and Gold Stocks – A Change in Market Character

  Surprising Strength Similar to many others, we have been waiting for some sort of correction in gold and gold stocks, but obviously, not much has happened in this respect so far. We have written quite a lot about gold and gold stocks between August 2015 and February 2016, because we felt a good opportunity was at hand – a short term trading opportunity at the very least, but one with the potential to become more than that.   Inside the fully mechanized South Deep gold...

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Silver Gone Wild

  Supply and Demand Report, 20 Mar, 2016 Early on Monday morning (Arizona time), silver began to rise. From its close on Friday of $15.46, it ran up to $15.82. Then it began to slide, eventually dropping to $15.17 by mid morning on Wednesday.   Photo credit: Ethan Miller / Getty Images   Then… *BAM*   Spot silver over the past week. The release of the FOMC statement sparked a flurry of speculative buying – click to enlarge.   The Fed said not a...

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Precious Metals Supply and Demand Report

  ECB Inspires Large Short Term Moves On the week, the prices of the metals didn’t move all that much. However, the move around 6am (Arizona time) on Thursday is notable. The price of silver spiked up from around $15.12 to $15.64—3.4%—by around 8am. Twelve hours later, the price touched $15.73 before sliding off.   Mr. Draghi, wagging his finger (general advice: always be careful with finger-wagging politicians and high ranking bureaucrats). [PT] Photo credit: AFP   We...

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Gold-Silver Ratio Reversal

  Silver Rockets Higher So the price of silver rocketed up 80 cents, while the price of gold jumped $37. Silver is now more expensive than it was two weeks ago; the price decline of last week was more than overcompensated. This pushed the gold-silver ratio down about two whole points, with virtually the whole move on Friday.     Last week, we said this:   Monetary Metals has been predicting a ratio well over 80 for a long time. And for two months, we have been...

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Interest on Gold Is the New Tempest in a Teapot

  Accustomed to Speculation Zero Hedge published an article on Canadian Bullion Services (CBS) last week. Other sites ran similar articles. The common thread through these articles, and in the user comments section, is that CBS is committing criminal fraud. Or, if not, then it’s a conspiracy by the Canadian government to confiscate gold. Terms like fractional reserve and re-hypothecation were dusted off for the occasion.   3-month t-bill rates: all the way to nada – click to...

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Gold-Silver Ratio Breakout

  A Sharp Move The gold to silver ratio moved up very sharply this week, +4.2%. How did this happen? It was not because of a move in the price of gold, which barely budged this week. It was due entirely to silver being repriced 66 cents lower.   Futures trading pit in Chicago Photo credit: Scott Olson / Getty Images   This ratio is now 83.2. It takes 83.2 ounces of silver to buy an ounce of gold. Conversely, it takes 1/83.2oz (about 0.37 grams) of gold to buy an ounce...

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Gold Costs 80 oz. of Silver

  Soaring Ratio The big news is that the gold-silver ratio closed at 80. This is not only a new high for the move. It’s higher than it has been since 2008. It is also exactly what Monetary Metals has been calling for. Last week, we said the gold fundamental price was $1,450 and the silver fundamental price was $14.90 (i.e. a fundamental value for the ratio over 97 last week). This week, the ratio moved up, and it’s now 1.3 points closer. In other words, silver got cheaper when...

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Gold Gets a Paulson Boost

  This is too Funny… We have nothing against hedge fund manager John Paulson…after all, we don’t know the man. In fact, he is inter alia known for his philanthropy, having gifted $400 million of his not inconsiderable fortune to Harvard’s School of Engineering and Applied Sciences. But ever since hitting the big time by shorting assorted MBS prior to the 2008 crisis, he has frequently served as an excellent contrary indicator.   John Paulson looking at a recent...

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