Author Archives: Keith Weiner

     

 

 

One Cannot Trade Based on the Endgame

The prices of the  metals were down again this week, -$15 in gold and more substantially -$0.57 in silver.

Stories continued to circulate this week, hitting even the mainstream media. Apparently gold is going to be priced at $10,000. Jump on the bandwagon now, while it’s still cheap and a bargain at a mere $1,322!

 

atlas-launch-muos-1920All aboard… or maybe not? It all depends on what one wants to achieve – there’s many a slip ‘twixt the cup and the lip…

Photo credit: National Geographic Channel

 

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Doubts About Debt

This was a shortened week, due to the American holiday of July 4, celebrating the start of the war that lead to “Amerexit”, 240 years ago.

 

Amerexit and BrexitAmerexit and Brexit…

 

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Going Parabolic

From Wednesday through Friday, the price of silver spiked massively. It ended the week about $2 higher than the previous week. The last time we recall silver price action like this was about 3 years ago, in August 2013.

 

Launch of Atlas V Juno from Cape Canaveral AFSA hi-ho silver moment…

Photo credit: Pat Corkery, United Launch Alliance

 

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Markets Blindsided by Brexit

The big news this week was that the British voted to exit the European Union. This was not the outcome expected by pundits, or the polls.

 

ADAMS20160120_3553331bHe should have known… (the cartoon shows a list of polls of “Dewey wins by landslide” or “Trump will never win the primaries” quality…)

 

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Loose Monetary Policy Remains in Place

Last week, we asked where then will silver go. Well, the price moved around this week, dipping on Thursday but then rebounding sharply on Friday. It closed up 13 cents from last week. The price of gold rose $24.

This week, the Federal Reserve announced that it will not hike rates. Most economists (and traders) have long been expecting a hike (not us).

 Fed_tightening_cartoon_09.09.2015_largeIt was just a thought….

Cartoon by Bob Rich

 

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Precious Metals Surge

The price of gold bumped up thirty bucks, and that of silver about one buck. Is this liftoff — when the dollar falls sharply, and the price of each metal in dollar terms skyrockets?

 

the-lord-of-the-rings-sarumanSilver gets the Saruman question…(see further below)

Photo credit: New Line Cinema

 

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Surging Contango

There are two views of the markets for the monetary metals. One, as we have discussed many times in this Report, holds that gold and silver will eventually go up so high that those who own the metals will be rich.

 

Silver and VIPs PhilipsburgPhilipsburg, Montana, 1890: evidently, these gentlemen did not suffer from a silver shortage.

Photo via mininghistoryassociation.org

 

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The Dollar Increases in Value

The dollar moved up, though most people would say gold fell about $40, and silver 32 cents. In the mainstream view, the value of the dollar is 1/N (N is the quantity). So how could the dollar go up? Certainly, the quantity keeps on increasing.

 

1 buckThe buck.

 

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A Wake-Up Call

The price of gold moved down about twenty Federal Reserve Notes, and the price of silver dropped $0.57. The big news is that the gold-silver ratio moved up about 1.5. We hate to say “we told you so,” well, OK. Actually… sometimes there’s a certain je ne said quoi about gloating. *Achem*

In all seriousness, the dollar is going up. We measure it in gold, or alternatively in silver. In gold, the dollar rose 0.4mg gold to 24.84. In silver, it was up 60mg to 1.88g silver. We do not think that the dollar can be measured in terms of its derivatives such as euro, pound, etc. for the many of the same reason that the gold can’t be measured in terms of its derivative, the dollar.

 

Paper airplane made out of money with clouds in the backgroundIllustration via irs.com

 

Why is the dollar going up? It’s the debtors that give value to a debt-based currency (not the quantity). Right now, debtors are feeling the pressure. Meanwhile, most mainstream speculators are looking at price charts and they want all-in on the dollar (most would look at this as avoiding gold exposure).

 

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Confidence Not Lost Yet

The price of gold moved down about sixteen bucks, while that of silver dropped about three dimes. In other words, the dollar gained 0.3 milligrams of gold and 0.04 grams of silver.

We continue to read stories of the “loss of confidence in central banks.” We may not know the last detail of what that will look like—when it occurs one day.

 

fedFederal Reserve – still managing to maintain enough confidence

Photo credit: Adam Fagen / Flickr

 

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The Euthanasia of Widows and Orphans

In my testimony in support of the gold legal tender bill this year, I discussed failing pension funds. Retirees who count on their pension checks are being told that their monthly check will be reduced by up to 60%.

 

2012-W-50-Proof-American-Gold-Eagle-CoinSound money also looks better than the government’s scrip!

 

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A Loss of Momentum

The price of gold moved down slightly this week, while that of silver dropped more substantially—1.9%. We don’t see much decrease in the enthusiasm yet from this minor setback.

This was a shortened week due to the May Day holiday outside the US.

 

liquid gold 2Photo credit: R.P. Visual

 

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