Precious Metals
Putting the World on a Paper Standard
Half a century ago one of the most disastrous monetary policy decisions in US history was committed by Richard Nixon. In a television address, the president declared that the nation would no longer redeem internationally dollars for gold. Since the dollar was the world’s reserve currency, Nixon’s closing of the “Gold Window” put the world on an irredeemable paper monetary standard.
Richard Nixon during his televised speech on the “temporary” closing of the gold window (effectively a debt default). [PT]
Silver Yo-Yo
The price of silver is going up and down like a yo-yo. On Sunday and into the first part of Monday, the price skyrocketed on news that Reddit was touting the metal. But as the data clearly showed, the price was not driven up by retail buying of physical metal.
Silver, March futures from Jan 27, 30 minute chart: a lot of volatility, but silver seems to have established a higher low after coming down from the initial spike. [PT]
Sticking it to the Man
A certain Reddit group has recently become very popular. For many people, the group has emerged as the savior of humanity. With their collective might, this group has brought a few hedge-funds close to bankruptcy.
GME daily, log and linear view – a brief surge, but quite a painful one for hedge funds that were short the stock in size. [PT]
The Sage Does a 180
The big news in the monetary metals is that Warren Buffett — famed disliker of gold — sold bank stocks to buy gold mining shares. What is interesting to us is not that we think he has any special powers to predict the gold price. After all, he famously bet on silver, and lost.
GOLD, daily, over the past two years. The Sage is a bit late to the party, but his entry confirms that the sector is now entering the “recognition phase” – the stage at which the investoriat-at-large realizes something is afoot. [PT]
Explosive Days in Silver
The silver market witnessed another explosive day!
At midnight (in London), the price of the metal was $26.90. By 9pm, it had rocketed up to $28.95, a gain of 7.6%. This is not normal.
But then, we are not in a normal world.
After several years of going nowhere and a downside fake-out in March this year, silver has come to life rather dramatically… [PT]
On Monday, Silver got Scarcer – and Simpler
On 23 July, we said:
The action on 27 July was not.
Silver spot price vs. September basis
Gold’s Little Brother
Today I want to put a popular precious metal under the magnifying glass for you: silver.
Silver, often referred to as the “little brother” of gold, has a particularly interesting seasonal pattern I would like to share with you.
Shiny large good delivery door stops made of silver – about to enter interesting seasonal phase. [PT]
The New In Gold We Trust Report is Here!
The In Gold We Trust 2020 report by our good friends Ronald Stoeferle and Mark Valek was released last week. It is the biggest and most comprehensive gold research report in the world. As always it contains a wealth of new material, as well as the traditional wide-ranging collection of charts and data that makes it such a valuable reference work for everything of interest to gold investors or indeed for anyone interested in precious metals (a download link to the report is provided below).
Left: casting gold bars. Right: using gold as a shield against assorted slings and arrows.
Incrementum Advisory Board Discussion of April 8, 2020 with Special Guest Rick Rule
The Incrementum Fund’s Advisory Board held its quarterly meeting on April 8. This time renowned resource stock investor Rick Rule, the President and CEO of Sprott US Holdings Inc., joined the discussion as a special guest. As always, there is a download link to a transcript of the conference call in PDF format at the end of this post.
Rick Rule, CEO of Sprott US Holdings Inc., and renowned investor in the commodities sector.
Gold Sector Outperforms Broad Market
The gold sector is in an uptrend since September 2018. The initially rather labored move accelerated after a secondary low was established in May 2019 and the 50-day and 200-day moving averages were breached for the second time. Last week the two moving averages were once again overcome in the course of the post-crash rebound. Here is a chart showing the entire move since 2018:
After a rather harrowing decline in sympathy with the February-March stock market crash, the HUI has swiftly moved back to its previous high for the move and is now trading above its 50- and 200-day moving averages again.
Big Moves, Widening Spreads
The big news this week was the drop in the prices of the metals (though we believe that it is the dollar which is going up), $57 and $1.81 respectively.
Despair at the Unjustly Injured Gold Bugs Anonymous meeting… [PT]
Bonanza Season
In the 18 December 2019 issue of Seasonal Insights I discussed the strong seasonal advance in precious metals around the turn of the year. In silver it begins in mid December and continues until the end of February. A roughly similar pattern can be observed in platinum and palladium, while seasonal buoyancy is at least to some degree evident in gold as well.
Long-term silver and platinum seasonal charts from the late 2019 issue of Seasonal Insights : the seasonally strongest phase lasts from mid December until late February. [PT]
Austrian Theory and Investment
Realtime Charts
Gold in USD:
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
Gold in EUR:
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_euoz_2.gif)
Silver in USD:
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
Platinum in USD:
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/platinum/t24_pt_en_usoz_2.gif)
USD - Index:
![[Most Recent USD from www.kitco.com]](http://www.weblinks247.com/indexes/idx24_usd_en_2.gif)
