SB's Comments

Gold: Risk / Reward Ratio Favors Long Side

Thu, 02 Apr 2009 06:52:55 -0400

Maybe not in USD but the price in the rest of the world is at multiyear highs in their local currencies.

Gold Against Stocks Over the Decades: Not as Impressive

Mon, 23 Mar 2009 08:37:40 -0400

I see a rounding bottom - expect approx 5x appreciation in 2 years

Gold: War of Attrition

Fri, 31 Oct 2008 06:15:51 -0400

**In creating such huge short positions in the futures market, and driving the price down**

Does this mean the Gold Bugs are an unconvinced lot and do not want to call the bluff of the bears. I don't beleive US bullion banks can get the cooperation of big players (govt.) of China or Russia to play ball. For every short there has to be a long and the longs are just not strong enough to stem the shorts.

Gold Futures' Dirty Secret (Part I)

Sat, 06 Sep 2008 04:16:36 -0400

Think-About-It - What I meant was the premium people are paying, which is alot more than the justifiable time-price difference. So one can buy the near month contract very close to epiry and take delivery (this will only work if there is compulsory delivery on all open positions on expiry - I don't know whether US Exchanges enforce compulsory deliveries)

Gold Futures' Dirty Secret (Part I)

Thu, 04 Sep 2008 07:38:14 -0400

Theoretically can't one go to the futures market and buy Gold and wait till the expiry of the contract to get delivery. You'll get physical Gold at the price of Paper Gold. Can someone tell me why is that not happening for if it were then the price difference would not exist

The Disconnect Between Supply and Demand in Gold and Silver Markets, Part II

Wed, 27 Aug 2008 07:29:56 -0400

According to the WGC, “net investment demand in Vietnam in the first half of 2008 totaled 56.8 tons, already outstripping the 56.1 tons recorded for the whole of 2007.”

Does that have anything to do with the fact that Vietnam has double digit inflation and the Vietnamese govt. have put restrictions on the ownership of gold.

The Disconnect Between Supply and Demand in Gold and Silver Markets, Part II

Wed, 27 Aug 2008 06:46:21 -0400

Conrad - you say - Meanwhile, the COMEX fantasy price, supposedly, dropped into the $800s and even, temporarily, into high $700s, during that time period. Now, a lot a market participants feel that they have the right to buy at that price, because that’s the “spot” price. But, can they? A lot of people are paying premiums above so called “spot”

You can go long on any of these "Fantasy" exchanges and if you keep your position till the expiry of the contract usually every alternate month, you will be alloted the metal at the price you booked it at. The Comex contract is 100 oz. but there are alternatives the DGCX (UAE) is 32 Oz. In India they have contracts for a 8 gram coin on the MCX apart from the regular 1 Kg and 100 Gram bars. If your position is open you have to take the delivery or face stiff fines on default. So this is actually a reality market which unfortunately maybe manipulated by a few big banks.

Is the Gold Rally Really Over?

Fri, 28 Mar 2008 04:52:05 -0400

I don't think Ben Bernake is dumb, I think he is being forced into it by an even dumber boss.

The COT Report and an Emerging Uptrend

Sat, 17 Nov 2007 02:10:57 -0500

The chart is a month old, the latest is 11/13/07