Growing Fundamentals For Gold And Silver

Summary

  • In our monetary system, there are several schools of thought whose theories attempt to describe, if not predict, the next price move. However, none of these schools describes the fundamentals of the gold and silver markets, much less predicts the price moves.
  • To look at the fundamentals, one must look at the gold and silver bases. The basis, to oversimplify slightly, is futures price - spot price. This shows the fundamentals, because a market in scarcity has a lower price for future delivery than for immediate delivery.
  • There’s no such thing as scarcity or abundance per se in the monetary metals - there’s scarcity or abundance of the metals to the market. Scarcity or abundance to the market is what we are measuring with the basis.

 

Gold and silver

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Prices move up and down in the restless churn of our irredeemable monetary system. There are several schools of thought whose theories attempt to describe, if not predict, the next price move.

The Different Theories

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