Ideas and analysis on money, markets and the world around us.
The powerful forces of bank credit contraction are at the heart of a rapidly evolving financial crisis in global derivatives, whose gross value is over $600 trillion; an unimaginable sum. Central banks are on course to…
Read the articleAhead of the Easter break it has been an interesting week for precious metals. Gold rose $55 from last Friday’s close to $1681.8 yesterday, the highest closing level since 2012. Silver rose a dollar on the week to close…
Read the articleCommentators routinely confuse the deflationary effects of a contraction of bank credit with the inflationary effects of central bank policies designed to offset it. Central banks always ensure their stimulus is…
Read the articleThis was a week of continuing confusion for markets in gold and silver futures, being disconnected from indicated physical prices outside the financial system, where there is no stock at current price levels. Gold fell…
Read the articleThe purpose of this article is purely educational. Increasingly, the wider public is turning to gold in a spontaneous reaction to financial and economic problems that have become suddenly apparent, hastened by the…
Read the articleThe Fed seems to have managed to halt the massive dollar squeeze and the associated strength in nominal yields and real-interest rate expectations. This has led to a reversal of the rather peculiar gold sell-off that…
Read the articleIn a dramatic week, gold and silver rose strongly on a decline of open interest on Comex. These conditions signaled an epic bear squeeze on the bullion banks. In early European trading this morning gold was trading at…
Read the articleThis is an open letter to Boris Johnson about the inflationary consequences of the global action against the coronavirus with which his government is conjoined, and the policies he will have to implement to protect the…
Read the articleGold prices moved to $1700/ozt a few weeks ago as the market started to price in rate cuts. However, since then, prices have fallen back to below $1500/ozt despite broad market turmoil. We believe this price fall is…
Read the articleAs the metal with the strongest antibiotic qualities it is ironic that the coronavirus pandemic has affected the silver price so harshly. As our headline chart shows, the silver price has collapsed by fully one third…
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