Ideas and analysis on money, markets and the world around us.
Yesterday, the FOMC released its June statement which only served to remind us that its members are powerless in the face of inflationary conditions. They refuse to accept the price consequences of monetary inflation,…
Read the articleLooking at our introductory chart, it seems bizarre that in a year when the US dollar M1 money supply is growing at 15% annualised (since 1 January), with interest rates still supressed at the zero bound and with the…
Read the articleThis article examines the relevance of technical analysis to today’s financial markets. Its genesis springs from two branches, Dow theory and the Elliott wave principal. Originally, Dow theory sprang from an attempt to…
Read the articleAll was going swimmingly for gold and silver until yesterday (Thursday), when gold took a $37 hit and silver was thumped by 70 cents. Consequently, by morning trade in Europe today gold had lost $32 to $1870, and silver…
Read the articleGold and silver continued to rally this week, with gold challenging the $1900 level and silver $28. From last Friday’s close, gold rose a net $12 to trade at $1892 in European trading this morning, and silver by 16…
Read the articleThere is an established theoretical relationship between bonds and equities which provides a framework for the future performance of financial assets. It would be a mistake to ignore it, ahead of the forthcoming rise in…
Read the articleGold and silver had a better week, with an exceptionally strong Monday. Gold continued with a daily incremental improvement, but silver fell back from an enthusiastic spike to $28.75 on Tuesday to drift lower…
Read the articleThis article looks at the likely consequences of the Bank for International Settlements’ introduction of the net stable funding requirement (NSFR) for bank balance sheets, insofar as they apply to their positions in…
Read the articleIn last week’s report it was suggested that a test of recent support levels of $1800 for gold and $27 for silver could not be ruled out. A small pull-back did materialise, with gold falling $22 at one point, before…
Read the articleBasel 3 is on course to regulate the LBMA out of existence. And with it will go all the associated arbitrage business and position-taking on Comex, because most bullion bank trading desks will cease to exist. The only…
Read the article