22 November 2015

Five Metals

Those who frequent the precious metal forum www.silverstackers.com will know the name goldpelican, who is the forum administrator as well as one of the guys behind http://www.goldstackers.com.au/store. Well he has just started a blog called Five Metals and his first post is on a favourite topic of mine - excessive coin premiums. Worth adding to your blog reading list.

The chart below from WSJ via Zero Hedge shows a complete lack of consensus amongst banks as to gold's future direction. That may translate into a sideways market as participants compete on their view.

Thankfully there doesn't seem to be many forecasting prices below $1000.

Steven Saville made a good point about gold futures and arbitrage in this blog post, noting that:

Strangely, many gold ‘experts’ assert that gold is different due to its dominant monetary and store-of-value roles, but then insist on applying a traditional commodity-style method of supply-demand analysis.

Yep, it doesn't make sense to treat gold the same as a commodity like orange juice futures.

No comments:

Post a Comment