Gold seems, to a larger extent than silver, and even more so to an extent larger than is true for palladium or platinum, to work as a true financial asset: decoupled from price developments in the commodity markets. It succeeds as a hedge against currency and stock-market trouble.
How long will it take before the world again sees copper at around $10,000 a ton, the going price it touched (though briefly) in early 2011? Perhaps several more years and another full business cycle. There may be a lot of down before an upturn gets us there.
Guest columnist Diane Harrison looks at the world of alternatives to alternatives, including stamps, cars, farmland and more...
The price of gold took a swan dive as November ended, just as Swiss voters formally nixed an initiative that would have required the central bank to buy a lot of the stuff. Faille argues that this is not a matter of cause and effect. It is, on the other hand, a fascinating case study in the discounting machinery that is a market.
The Swiss National Bank and the government oppose a pending referendum that would drastically change the country's policy on gold. But of course the anti-establishment nature of the petition is the whole point.
Rickards' new book expands on some of the themes of his 2011 publication, Currency Wars. The new book is, specifically, about the end of a particular phase in the history of money, the reserve significance of the U.S. dollar.
Markets work. We are warranted in believing this because it has proven itself in human history and we have studied history. Centralized social planning fails. Now, having said all that, let's talk about the Fed.
Yes, an article in a recent issue of The New Republic, by Dean Starkman, is right to dismiss certain simplistic views of the crisis of 2007-08 as offensive. But what is Starkman's alternative? In providing that, he gets simplistic himself, even complacent.
A big story came with Beijing and London datelines on Tuesday, October 15: a deal that may make the City of London a major trading hub in the Chinese yuan, while making life easier for British investors who want to invest directly in China. What does this mean for the U.S. dollar?
A new paper addresses a group of industrial metals, the platinum group, and suggests that its components might be a wise addition to many portfolios on CAPM grounds.
Christopher Faille talks to James Rickards about U.S.-Russia relations, as Russia reaches parity with the U.S. in the gold-to-GDP ratio.
The present global monetary situation, plainly, is not at equilibrium. Everybody else’s currencies depend upon the dollar, the dollar depends upon petroleum, and petroleum depends upon … whatever. Changes will continue (through a succession of crises if no other way can be developed) until a new equilibrium can be attained.
Last summer the CME Group's European clearing house for derivative products announced that unallocated gold would serve as collateral for margin cover. Was that the sort of illusory good news that marks the top of a trend or was that a symptom of a secular trend toward the de facto monetization of gold that will re-assert itself once the present cyclical down move is done?
Either Portugal or Italy could kick off a move toward the use of gold as collateral for sovereign debts. Each country has significant supplies of the stuff. Portugal, for example, has 383 metric tons, equaling 90 percent of its foreign reserves.