Ideas and analysis on money, markets and the world around us.
From 2006 the Bank of England’s Annual Report has declared the quantity of gold in its custody, including the UK’s own 310 tonnes. Prior to that date a diminishing quantity of on-balance sheet gold (sight accounts) was…
Read the articleThis week gold moved firmly above the $1,300 level, which with expiring $1,300 call options had been a line in the sand. The weakness on Wednesday and Thursday probably owed something to this option expiration, when the…
Read the articleThe purpose of this article is to explain how derivatives have distorted gold prices with particular reference to the US futures markets. This will enable us to anticipate the price effect when the distortion is…
Read the articlePrecious metal prices continue to build a base, with increasing evidence of a shortage of physical metal. In London gold forward rates (GOFO) continue to be negative, which means that the market will pay you more…
Read the article“Bernanke stays course on Fed buying” is the FT website headline this afternoon – with the Fed chairman confirming what we’ve been saying all along: that, in his words, “a highly accommodative monetary policy will…
Read the articleIn a recent article I introduced the concept of allowing for the increased quantity of aboveground gold and the expansion of the quantity of dollar currency over time when trying to value gold. The purpose of this…
Read the articleThis week bullion prices began to rise in quiet conditions, with gold rising over 6% and silver by slightly more. Trading patterns have changed, with much of the rise coming during US trading hours, confirming that the…
Read the articleCrowd psychology and the flow of hot money into and out of asset classes are what make markets tick. Statistical indicators often give a good record of what has just happened, but – as discussed in last week’s piece in…
Read the articleWestern economists have taken a gamble that gold is no longer money, just another commodity. In disparaging gold, we in the West are massively outnumbered and outgunned by China, India, the Middle East and even Russia,…
Read the articleIt is seems to be universally agreed that regulation is a good thing, ensuring that people are treated fairly by unscrupulous businesses. Regulation is a vindication of state intervention and control. The alternative is…
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