• Gold: 1,308.54 -1.71
  • Silver: 17.14 -0.01
  • Euro: 1.184 -0.001
  • USDX: 92.752 0.104
  • Oil: 51.98 -0.11

See no evil, speak no evil…

Let us return to the real issue at hand, the questions that went begging about monetary policy. More confident central bankers in control of their brief might have said something about it, if only in passing. But with Ms Yellen we have a problem. If, as she claims, the Fed has cured America of financial crises, why hasn’t the Fed normalised interest rates already? Even on the US Government’s heavily-sedated consumer price index, inflation is at the Fed’s target, as are its highly-questionable unemployment numbers. Interest rates should already be normalised, which means they ought to be considerably higher than they are today.

The Amount Of Dollars In Existence Relative To...

Silver is currently trading around $17 an ounce. This is around 34% of its 1980 all-time high of $50. However, this is an incomplete representation of what silver is really trading at, relative to US dollars. When you look at the silver price, relative to US currency (the amount of actual US dollars) in existence, then it is at its lowest value it has ever been.

Silver Market Morning: August-25-2017: Gold and...

We cannot remember seeing prices in the precious metals this calm for a few days. As we have said before Shanghai has had a calming effect on global gold markets, but even its calmness is remarkable. It is not that we expect anything dramatic from Jackson Hole but in such a calm market, any news at all, will have an impact.

Silver Market Morning: August-24-2017: Gold and...

The currency and precious metal prices are remarkably quiet again, today. Once again there are no purchases or sales into or from the SPDR gold ETF and the Gold Trust. While we do recognize that the Shanghai market has reduced volatility in the London and New York, currency and precious metal prices remain in calm waters. The Jackson’s Hole meeting of central bankers on Friday is headline news with Draghi, of the E.C.B. may now give a speech.

Silver Market Morning: August-23-2017: Gold and...

The currency and precious metal prices are remarkably quiet today. With no purchases and only very small sales the SPDR gold ETF and the Gold Trust are giving no input to prices. While we do recognize that the Shanghai market has reduced volatility in the west, currency and precious metal prices are in calm waters. While the Jackson Hole meeting of central bankers on Friday is being touted as the next event to impact precious metal prices, we see this as having a positive, if any, effect on precious metal prices.

Silver Market Morning: August-21-2017: Gold and...

With Shanghai leading the way today, we see gold prices persistently attacking the $1,300 overhead resistance this week. Please note that the way the gold price keeps rising in Shanghai is quietly steady with no spiking activities. The U.S. is more volatile, but comes into line with Shanghai. London always tries to lower the gold price from the trading level seen in Shanghai, but does not resist the overall rise in Shanghai’s price.

The fiscal benefits of free trade

Western governments have an overriding problem, and that is they have reached or exceeded the bounds of taxation, at a time when legally mandated welfare costs are accelerating. Treasury departments in all the welfare nations are acutely aware of this problem, to which there’s no apparent solution. The economic recovery, so consistently forecast since the great financial crisis, has hardly materialised and has added to the problem.

Silver Cycles and War Cycles

Wars are usually financed with debt – borrowed currency. The extra currency in circulation creates price inflation. Silver prices, along with most other commodities, rise due to currency devaluation. Silver is used in war materials and war production, so demand rises, which also causes prices to rise. Conclusion: We expect silver prices to rise at the beginning of new wars or the escalation of major and costly wars. There is little doubt that both World Wars and the Vietnam War were costly and important to the U.S. economy.

Silver Market Morning: August-18-2017: Gold and...

The dollar is falling once more, but not precipitously. It will lead to higher gold prices if it continues. This is being reflected in today’s prices. There is strength to the rise in gold price that we had not seen before in the previous attacks on $1,300. The causes are solid too. These are; an overvaluation of the dollar, a resuscitation of U.S. demand for physical gold, a dearth of sellers of gold, Shanghai’s demand for gold remains strong as it does in London!

Silver Market Morning: August-17-2017: Gold and...

All three global gold centers are reacting to the falling dollar today. What is of great interest is that the concept of Shanghai having a “premium” over London is just about dead. We are seeing a truly global gold price now, both ways. We have no doubt now that global gold prices are here to stay and that the impact of COMEX ‘paper’ gold prices has almost been removed as the significance of New York’s gold prices has diminished, in favour of the global gold price. This is a significant point in the evolution of the gold price!