Blog

August 30, 1999 – There are two sides to the Gold market. One is the paper side, which encompasses all transactions denominated in terms of Gold for which the metal never changes hands. The other is the physical side, meaning that a transaction actually involves a change in ownership of Gold bullion, i.e., physical metal.Read more

August 17, 1999 – When I began email subscriptions a couple of years ago, I told subscribers that they would eventually receive more than just speedy delivery. Periodic interim bulletins would also be part of the new email service. I envisioned that these bulletins would be of two types. First, if there were important marketRead more

August 16, 1999 – In 1869, Jim Fisk and Jay Gould tried to corner the gold market, and for a time, this notorious duo succeeded. It is a fascinating story that is relevant to what is happening in the gold market today. At the time, the dollar was on the Gold Standard and still definedRead more

August 16, 1999 – If I’ve learned anything over the years, it is to not underestimate the power of central banks and their willingness to play ‘hard ball’ to enable them to keep their hands on that power. Witness the gold sale by the Bank of England as evidence of my proposition. So if aRead more

July 26, 1999 – In Letter No. 246, ‘Is Gold Cheap and therefore Good Value?’, I presented a detailed case that Gold is cheap and good value, and that it should therefore be accumulated. My analysis and conclusions resulted in many questions and comments from readers, which I would like to address. In doing so,Read more

July 12, 1999 – One of the most basic axioms of trading and investing is that every market has a story to tell. Traders, generally speaking, need to know what that story is telling us about the short-term prospects for a market. In contrast, investors are more concerned by the longer-term implications of that story.Read more

June 28, 1999 – The price of Gold ended Friday at $260.40. One year ago the price was $293.80, so over the past twelve months Gold has lost $33.40, or 11.4% of its purchasing power. However, this simple calculation tells only part of the story about the change in Gold’s purchasing power. During the pastRead more

June 7, 1999 – Many things in finance and economics are counter-intuitive. In fact, many things in life are counter-intuitive. For example, when standing on a beach and looking out over the ocean toward the horizon, the earth really does seem to be flat. It takes a discerning individual to ferret out the truth aboutRead more

May 17, 1999 – For months it has been my contention that central banks are manipulating the Gold price. More proof came on May 7th. The British government, through the Bank of England, announced that it intends to dishoard 415 tonnes of its 715 tonne Gold reserve. In contrast to the other governments(e.g., Belgians, Dutch,Read more

April 26, 1999 – In the last letter I laid out the case that Gold in recent years was being increasingly mobilized. It is being borrowed today in weights never before imaginable, and by implication, it is also being loaned today more frequently than ever before. The desire by mining companies to sell today aRead more