No Schedule for the Dollar's Demise
A few weeks ago we said:
"This is not an environment for a Lift Off Event"
Illustration of different types of lift-off events one may encounter. [PT]
Sure enough, last week the price of gold was down $9 and that of silver down 11 cents. And now we are just one week away from the latest magic date put forth by a celebrity gold hawker, for when the dollar is going to hit its ignominious end!
OK, all joking aside, our monetary system has many serious problems. But none of them have a planned date like this. That's not how it works.
So whither the price of gold? We will provide a picture of the changing gold and silver fundamentals. But first, here is the chart of the prices of gold and silver.
Next, this is a graph of the gold price measured in silver, otherwise known as the gold to silver ratio (see here for an explanation of bid and offer prices for the ratio). It was unchanged this week.
Gold-silver ratio bid and offer
Here is the gold graph showing gold basis, co-basis and the price of the dollar in terms of gold.
Gold basis, co-basis and the USD priced in milligrams of gold
Something stands out, practically jumping off the page. The price of the dollar jumped by 0.7 mg of gold (i.e., the price of gold fell $33) from June 14 through Friday. Gold became a little scarcer, but not a lot. The not-a-lot increase in the co-basis is clearer when you look at the Gold Basis Continuous Chart.
The Monetary Metals Gold Fundamental Price fell another $10 this week to $1,324. The fundamental has now completed its round trip, first up out of the range it's held since Q2 2017, and now back into that range.
Now let's look at silver.
Silver basis, co-basis and the USD priced in grams of silver
It was the same story in silver last week. Price drops. Scarcity rises, but not a lot. It's almost as if metal is coming to market, even at the lower price...
The Monetary Metals Silver Fundamental Price fell 42 cents.
Charts by: Monetary Metals
Chart and image captions by PT
Dr. Keith Weiner is the president of the Gold Standard Institute USA, and CEO of Monetary Metals. Keith is a leading authority in the areas of gold, money, and credit and has made important contributions to the development of trading techniques founded upon the analysis of bid-ask spreads. Keith is a sought after speaker and regularly writes on economics. He is an Objectivist, and has his PhD from the New Austrian School of Economics. He lives with his wife near Phoenix, Arizona.