Precious Metals

We most recently discussed the long-term performance of the gold/silver ratio only two months ago, but the subject is sufficiently important to warrant some repetition.

The correction in the gold price continued this week, falling another $40 to a low of $1290 yesterday.

The story that commodities are at the centre of China’s shadow banking system has gained prominence in recent weeks.

Briefly: In our opinion short speculative positions in gold (half), silver (half) and mining stocks (full) are justified from the risk/reward perspective.

Briefly: In our opinion short speculative positions in silver (half) and mining stocks
(full) are justified from the risk/reward perspective.

This week gold fell from a high of $1390, achieved late on Sunday night European time, to a low of $1322 last night before rallying $15 on London’s opening this morning.

There is a fascinating story from Robert Peston, the BBC’s business editor about his interview with Hank Paulson, who was the US treasury secretary at the time of the Lehman crisis.

Can the gold price be fundamentally related to some other economic variables?

March 16, 2014Inflationbanks, business lending, carry trade, inflation

Last Monday gold ended a week-long consolidation that saw it fall from $1354 to $1329, before rising strongly to over $1370 yesterday

Briefly: In our opinion short speculative positions (half) in silver and mining stocks are justified from the risk/reward perspective.

Bear markets can be devious creatures.