Thursday With the US$ (and other currencies) gaining in strength in the last 36hrs, I’ve been busy answering my phone and emails. “What’s happening to the ‘price of Gold’?” I’ve almost given up trying to explain that Gold is a store of stable value and that it is the currencies that are going up and down as measured by Gold. It is because they cannot grasp that … [Read more...]
On the Dollar Price of Gold
Friday This article was in the Financial Review a few days ago. I was asked to comment. Going straight past Jim Rickards’ falling interest rates are the solution bit (no they're not, they're the problem), his prediction for the fiat price of gold is an estimation based on a false premise. There will be a long continuance of price deflation before we hit … [Read more...]
Dollar Bid Price
Sunday Graph from Monetary Metals The new step down in the dollar is causing much excitement with the Gold bugs who persist in viewing the graph upside-down. Good news – at last! The graph above is the right way up and shows what is really happening. It is so obvious that it should not still need to be stated, but it does. It is not the fictitious … [Read more...]
Economic Collapse
Saturday I’ve just been reading how central banks, already huge stock owners, will inject another US$3.5 trillion into stock-markets this year. The thrust of the article was that it would be a major problem if they ever sold those stocks. That is obviously true, which is why they won’t sell them. Economic collapse will not come from a deliberate collapse of the stock … [Read more...]
Case Closed
Monday A couple of recent incidents have given me pause for thought. I lent a book with an interesting and well-reasoned speculation to a friend. She didn’t read the book and returned it with the comment that the theory had been discredited – and proceeded to quote (without acknowledging it) from Wikipedia. I sent another guy a link to an interesting article; he … [Read more...]