Sep 26, 2023·Alasdair MacleodFOMC on pause
The FOMC and the Bank of England surprised markets by not raising interest rates this week as expected. Following the FOMC’s decision, gold and silver fell on the back of its hawkish statement before recovering slightly. In Europe this morning, gold was $1926 up a net $2 from last Friday’s...
Read MoreSep 25, 2023·Alasdair MacleodThere’s a herd of elephants in the room
Among the many problems currencies and markets face, there is one which is undocumented: the eurodollar market, which is yet another very large elephant in the room. This article quantifies eurodollars and eurodollar bonds, which are additional to US money supply and credit.Research by the Bank...
Read MoreSep 19, 2023·Alasdair MacleodGold hits record highs in CNY, JPY
Gold and silver drifted lower this week, before a modest recovery this morning which can be put down to bear closing. In European trading this morning, gold was $1918, unchanged from last Friday’s close after testing the $1900 level yesterday. Silver was $23.05, down 3 cents, after testing...
Read MoreSep 18, 2023·Alasdair MacleodCurrency wars versus gold standards
Russia and the Saudis are driving up oil and diesel prices. But these moves are likely to undermine the rouble more than they undermine the dollar, euro, and other major currencies. Therefore, higher energy prices will rebound on the Russians this winter: if they shiver in Germany, they will...
Read MoreSep 12, 2023·Alasdair MacleodSilver whipsawed
Gold and silver prices fell this week in light trade, with US markets closed on Monday for Labor Day. In European trade this morning, gold was at $1925, down $15 from last Friday’s close, and silver was at $23.05, down $1.10.Holidays are the speculators’ enemy. Holding trading positions over...
Read MoreSep 11, 2023·Alasdair MacleodSay’s Law says it all
As the world descends into a much-heralded recession, the surprise will be that interest rates will continue to rise as economic activity contracts. This is not what the economic establishment expects.This article puts the outlook in the context of classical economic theory, when it was...
Read MoreSep 5, 2023·Alasdair MacleodHealthy consolidation
In the last few days, gold and silver have paused their earlier rises. In the case of silver, these have been substantial, as shown in our headline chart. In gold, less so; but it does appear that silver is leading both metals higher. In European trade this morning, gold was $1944, up $39 on...
Read MoreSep 4, 2023·Alasdair MacleodA brief history of the gold standard
As evidence mounts that the major western economies are heading into a banking and monetary crisis due to contracting credit, we face the consequences of unsound money. The era of fiat is drawing to a close and its death will be painful for the highly indebted advanced economies in North...
Read MoreAug 29, 2023·Alasdair MacleodJackson Hole looms
Gold and silver rallied from the lows of last week in quiet Comex trade for gold, but more active trade in silver. In Europe this morning, gold was at $1916, up $27 from last Friday’s close, and silver was up $1.30 at $24.14.Gold has been remarkably quiet in all August, as the snapshot from...
Read MoreAug 28, 2023·Alasdair MacleodHedging the end of fiat
It is slowly coming clear that the fiat dollar’s hegemony is drawing to a close. That’s what the BRICS summit in Johannesburg is all about — rats, if you like, deserting the dollar’s ship. With the dollar’s backing being no more than a precarious faith in it, it is bound to be sold down by...
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