Mark McHugh

The Disconnect Between Supply and Demand in Gold & Silver Markets

Of course, this theory is a 'why' it was done, not a 'how'.

The Disconnect Between Supply and Demand in Gold & Silver Markets

Here's a slightly different theory (and let's all recognize that's all it is).

Let's assume that all the vaults have done their job and nothing shady is going on there. The problem is - Supply is very tight and higher prices don't seem to be shaking out enough physical sales. Much higher precious metals prices might trigger a run on the dollar. What to do?

The sudden drop in gold and silver surely freed up some supply. Why? Because leveraged traders couldn't meet margin calls and got wiped out. I spoked to a silver dealer Monday who was "about to go jump off the roof" because he spent last few days sending margin calls and closing accounts. Tragic indeed, but that bullion was now back on the market (and at a bargain price!). Hopefully, no one here is thinking about leveraging in metals.

American Eagles directly from the US mint are selling for $1119.95 for gold (37% above spot) and $25.95 for silver (95% above spot). C'mon folks, that a huge disconnect, and no, that doesn't include the pretty blue gift box or shipping and handling. I visit the mint site often enough to tell you it's never been anywhere near this big before.

Goodbye Mr. Stagflation, Hello Mr. Recession

In case you haven't heard - There's a new 'flation' in town, MANIPUflation. He seems pretty cool, just watch out for his crazy cousin, Hyperin.

The Disconnect Between Supply and Demand in Gold & Silver Markets

breethedeep,

"bizzare behavior of the markets right before 9-11"?

elaborate please.

A Personal Thank You to Momentum Investors

I remembered this article when I saw that Citi is screaming that the selling is overdone.

Just in case no one else says so:

Brilliant call! You're the man!

The Disconnect Between Supply and Demand in Gold & Silver Markets

Who's the new kid? (244350)

If you're not publishing somewhere, you should be. Or do you prefer the cloak of anonymity for this discussion?

Gold, Silver and the Great Unwind: No Conspiracies Here

I got five bucks that says he'll be back.

The Disconnect Between Supply and Demand in Gold & Silver Markets

Thank you for a great article James.

Will anyone who doubts James claims leave a number or website that will allow me to take physical delivery of a futures contract of silver. If need be, I'll go pick it up in the family truckster. I'm still waiting for the silver eagles I paid for.

Maybe someone could explain to me why the US Mint, who manages to get nickels, dimes and quarters to 80,000 bank branches, only supplies silver eagles to 13 dealers. Maybe they don't trust the banks either.

Ya know, if the US had only 13 gas stations, I bet the price of oil would drop a lot. Of course, most of us would then be riding bicycles.

Kudos to you James, for at least trying to explain this bizzaro world. I can only imagine the effort this took.

Gold, Silver and the Great Unwind: No Conspiracies Here

When physical delivery of something is virtually non-existent (1% of futures contracts), Mr. Market is calling from never-never land. It's not a question of conspiracy; the question is, "who the hell can call this price discovery with a straight face?".

Gold Stocks vs. Bank Stocks

Good article Peter, right to the point.

I know the tape says different right now, but I don't think the macro story has changed. Time will tell eventually, but the waiting game is no fun.

Gold and Silver Turn Bearish: No Conspiracy Here

What Bill is really trying to tell you is that there's no conspiracy, but everyone is out to get you.

Long Term, Gold Is On Its Way Down

Timothy,

Very good analysis. No one long any investment, likes to think about it going down, but you ignore the signs of the market at your own peril. Gold bugs should understand this as well as tech investors.

I'm glad to see a largely uninterested party write about price action, because both gold bugs and anti-gold bugs get too emotionally involved. I am a long-term gold bull, but that doesn't mean every day is "buy, buy, buy" day.

When Is Safety Worse Than Risk?

I think you've really hit the nail, Felix. There is no such thing as a zero risk investment, and here's another heretical idea: What if the next bubble to burst is US Treasuries (I think you implied that).

Crazy, huh? They are backed by the full faith (?), credit (uh-oh) and unlimited printing power of Helicopter Ben. And that's still considered the safest investment on the planet. Wow

The Stealth Depression

Grim news indeed. How many more people are "faking it" right now, going ever deeper in debt. What happens when the credit well runs dry?

Holding Positions Over the Weekend: Debunking the Monday Myth?

This is an interesting and discussion-worthy topic. I always like to have a precious metals position over the weekend "just in case" something bad happens. It has not been a fruitful strategy so far, but I'm not comfortable abandoning it either. Holding a position is one thing, but closing and re-opening every weekend doesn't seem to make much sense.

It also seems that a lot of price action takes place when the market is closed to normal people, so by the time you and I can get in on something - it's over.

Hedging with puts can be an expensive habit, too. I almost wish somebody sold "weekend insurance."