{"id":60388,"date":"2021-11-11T06:57:28","date_gmt":"2021-11-11T11:57:28","guid":{"rendered":"https:\/\/olduvai.ca\/?p=60388"},"modified":"2021-11-11T06:57:28","modified_gmt":"2021-11-11T11:57:28","slug":"rising-fundamentals-for-gold-and-silver","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=60388","title":{"rendered":"Rising Fundamentals for Gold and Silver"},"content":{"rendered":"
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Rising Fundamentals for Gold and Silver<\/a><\/h3>\n<\/div>\n
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The Different Theories on What Moves Gold and Silver Prices<\/strong><\/p>\n

For example, the Quantity Theory school attempts to relate the quantity (or change in quantity) of dollars, to each commodity. Generally, this theory predicts rising prices based on the reasoning of \u201cmore dollars chasing the same or fewer ounces of gold and silver.\u201d The problem is that the new holders of these new dollars are not necessarily bidding up gold and silver (our thorough rebuttal to this is\u00a0here<\/a>).<\/p>\n

The Conspiracy School thinks that there is a shadowy cabal, a price-manipulation cartel that decides what the gold and silver prices will be (our thorough rebuttal to this is in our\u00a0Thoughtful Disagreement with Ted Butler<\/a>).<\/p>\n

Other schools attempt to compare mine production with industrial and jewelry demand. Or attempt to hold up a famous buyer of metal, while ignoring the thousands of not-famous sellers who sold the metal to said famous buyer. We should not make too much ado over a move of metal from one corner of the market to another (as we\u2019ll discuss below).<\/p>\n

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Gold and Silver Fundamental Analysis:Contango, Backwardation and the Basis<\/strong><\/p>\n

None of these schools describes the fundamentals of the gold and silver markets, much less predicts the price moves. To look at the fundamentals, one must look at the gold and silver bases. The basis, to oversimplify slightly, is futures price \u2013 spot price. This shows the fundamentals, because a market in scarcity (as oil has been recently) has a lower price for future delivery than for immediate delivery. In other words, buyers prefer their oil now rather than later. And this preference is expressed as a higher price for delivery now, vs. later…<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Rising Fundamentals for Gold and Silver The Different Theories on What Moves Gold and Silver Prices For example, the Quantity Theory school attempts to relate the quantity (or change in quantity) of dollars, to each commodity. Generally, this theory predicts rising prices based on the reasoning of \u201cmore dollars chasing the same or fewer ounces […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,8183,4042,374,7957,647,730,30926],"class_list":["post-60388","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-backwardation","tag-contango","tag-gold","tag-keith-weiner","tag-precious-metals","tag-silver","tag-supply-vs-demand"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=60388"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60388\/revisions"}],"predecessor-version":[{"id":60389,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60388\/revisions\/60389"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}