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.