• 773 days Will The ECB Continue To Hike Rates?
  • 773 days Forbes: Aramco Remains Largest Company In The Middle East
  • 775 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,175 days Could Crypto Overtake Traditional Investment?
  • 1,179 days Americans Still Quitting Jobs At Record Pace
  • 1,181 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,184 days Is The Dollar Too Strong?
  • 1,185 days Big Tech Disappoints Investors on Earnings Calls
  • 1,186 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,187 days China Is Quietly Trying To Distance Itself From Russia
  • 1,188 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,192 days Crypto Investors Won Big In 2021
  • 1,192 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,193 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,195 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,195 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,199 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,199 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,199 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,202 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  1. Home
  2. Markets
  3. Other

Don't Short This Dog

This week, the prices of the metals mostly moved sideways. There was a rise on Thursday but it corrected back to basically unchanged on Friday.

This will again be a brief Report, as yesterday was a holiday in the US.

Below, we will show the only true picture of the gold and silver supply and demand fundamentals. But first, the price and ratio charts.

The Prices of Gold and Silver

Prices of Gold and Silver

Next, this is a graph of the gold price measured in silver, otherwise known as the gold to silver ratio. It moved sideways this week.

The Ratio of the Gold Price to the Silver Price

Ratio of the Gold Price to the Silver Price

For each metal, we will look at a graph of the basis and cobasis overlaid with the price of the dollar in terms of the respective metal. It will make it easier to provide brief commentary. The dollar will be represented in green, the basis in blue and cobasis in red.

Here is the gold graph.

The Gold Basis and Cobasis and the Dollar Price

Gold Basis and Cobasis and the Dollar Price

The price was unchanged, but the basis is up slightly and cobasis is down (i.e. gold became slightly more abundant). This is not the news dollar shorters (i.e. those betting on the gold price) want to see.

Our calculated fundamental price is all but unchanged around $1,360.

Now let's look at silver.

The Silver Basis and Cobasis and the Dollar Price

Silver Basis and Cobasis and the Dollar Price

In silver, the basis is basically unchanged but the cobasis went up a bit. The silver market got just a bit tighter, and our calculated fundamental price is up more than 30 cents to about a quarter above the market price. Not exactly "bet the farm with leverage territory", but definitely not "short this dog" either.

Watch this space. We have some exciting data science to reveal soon.

 

Back to homepage

Leave a comment

Leave a comment