Ideas and analysis on money, markets and the world around us.
Gold and silver is little changed on the week, having survived attempts to push gold lower through the $1300 level and silver through $21.25 on Tuesday. Precious metals are not the only markets to be waiting for a new…
Read the articleOn Wednesday last the Fed surprised most people by deciding not to taper. What is not generally appreciated is that once a central bank starts to use monetary expansion as a cure-all it is extremely difficult for it to…
Read the articleThe big event for all markets was the Fed’s announcement on Wednesday that there would be no taper. Before that gold and silver had continued their drift downwards making a mockery of chart support levels, with gold…
Read the articleIt was not too surprising that there is going to be no tapering for some very good reasons. The commencement of tapering would have led deliberately to bond yields rising, triggered by an increase in sales of government…
Read the articleNow that there is growing evidence of GDP growth, we must consider a new topic: the likely effect on central bank balance sheets, using the US Fed as an example. Since the banking crisis the Fed has acquired substantial…
Read the articleGold and silver finished a poor week by getting hammered badly on Thursday. The rout started at 07.54AM UK time when a sale of 2,000 contracts was sufficient to force a 20 second trading halt on overnight NANEX futures…
Read the articleRecent statistics are confirming “economic recovery” in the UK and even some of the weaker eurozone states. I put this in parenthesis, because what we are seeing is expanding nominal GDP, which is not the same thing.…
Read the articleThe consolidation from the end-August peaks for gold and silver continued this week. After last Friday’s sell-off, both metals rallied on Monday and Tuesday, before sinking to under $1370 for gold and $23.15 for silver…
Read the articleGold and silver consolidated this week, following an explosive $30 rise for gold ($1.20 for silver) last Friday. In precious metals markets there has been a change in sentiment from extreme bearishness to “don’t know”.…
Read the articleThere is increasing evidence that money is migrating from purely financial into economic activities. Business and retailer surveys all point in this direction. GDP forecasts are cautiously being revised upwards. While…
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