Gold Getting That Old Shiny Look Again

Nothing really has gone wrong with the fundamental gold story since it reached its current price in the summer of 2011.  This period was, as we remember, one of feigned panic amongst the media that the United States would actually default on its Treasury obligations.  The more fundamental story was that a few domestic and [...]


Open Letter To Ted Butler Of Butler Research

Keith WeinerPresident, Gold Standard Institute USA Oct 2, 2012

 Dear Mr. Butler:

 I read your article about silver manipulation at

 I am responding as someone who wants free markets.  I want to make one thing clear before I proceed.  We have no free markets anywhere today.  Without constant government intrusions into the markets, the paper [...]


The Arbitrageur: Gold Sea Change

The gold:silver ratio is the price of gold divided by the price of silver. It may be thought of as the price of gold in silver terms. Today, this ratio is around 58; it takes about 58 ounces of silver to buy one ounce of gold.

I think this ratio is likely to move higher. [...]


Today’s Macroeconomic Problems, The Expedient Solution And Its Consequences

Messrs. Quaintance and Brodsky of QB Asset Management have been advocating a revaluation (monetization) of gold by the Fed and other central banks as a solution to their unsolvable current situation. As they point out, there is never a good ending to monetary expansion and debts which governments cannot ever repay. Gold [...]


Backwardation In Gold And Silver

On Monday, May 14, something happened that hasn’t happened since Dec of 2008. Two successive near-month precious metals futures contracts were in backwardation at the same time. To oversimplify, backwardation is when the price of a futures contract is lower than the price in the spot market. It should not be possible for it to [...]


Jim Rogers: Buy A Tractor

This is a great interview of Jim Rogers by Maria Bartiromo. Lots of give and take. He is a canny investor and has been mostly right. You should listen to the man.

His best line: finance has had a great thirty years, but there are too many MBAs and not enough farmers. Buy tractors and [...]


Gold Market $1.24 Bn ‘Fat Finger’ Trade

The Wall Street Journal is reporting what is believed to have been a mistaken trade on the Comex that roiled markets for a while, but then settled down:

The CME Group Inc.’s Comex division recorded an unusually large transaction of 7,500 gold futures during one minute of trading at 8:31 a.m. EDT. The sale took [...]


The Arbitrageur: Takedown in Gold!

I thought today would be a good opportunity to do some forensic analysis on the big drop in the gold price. The anti-trust conspiracy crowd is out in force beating their drum on this one. But do they make any sense?

Here is a little table of the market action:

Prices listed [...]


The Arbitrageur: Temporary Backwardation—The Path Forward from 2008

The March silver futures contract first entered backwardation on Mar 9 and with a few zigs and zags has not only remained there but has gone deeper and deeper in.  The April gold future just entered backwardation today.  See the graph (backwardation is when (Spot (bid) – Future (offer) > 0).

We shall see [...]


Gold: Why You Should Read The Daily Capitalist

 Those of you who heeded the Daily Capitalist’s DoctoRx on the 19th were no doubt happy that they lightened up on gold as he advised. If you didn’t or if you are new to this site, then I urge you to read his last post, “Short-Term Caution on Gold Bullion: Still Preferring the Miners.”

Silver has [...]


Whither Gold? Part III

This is an interview with Jason Toussaint of the World Gold Council which sponsors GLD. He discusses what he feels are the important market indicators for gold.