Blog

April 26, 1999 – In the last letter I laid out the case that Gold in recent years was being increasingly mobilized. It is being borrowed today in weights never before imaginable, and by implication, it is also being loaned today more frequently than ever before. The desire by mining companies to sell today aRead more

April 12, 1999 – If you could borrow Dollars at 1% and invest them in another asset (e.g. T-Bills) yielding 4%, would you do it? Of course you would because there is very close to no risk in this transaction. As long as the federal government continues to pay you the 4% interest you areRead more

March 22, 1999 – In the last Letter I wrote that it is the physical market that drives the price of Gold, not the other way around. The paper market for Gold, namely, futures, options, etc., is not the most important factor determining the Gold price for the simple reason that the longs can askRead more

March 1, 1999 – Every once in awhile there is some heated discussion and contentious debate within the Gold market about the relative impact on the price of Gold by two opposing forces. We are at one of those times. On one side of the equation are the speculators, who generally deal in the paperRead more

February 8, 1999 – Several months ago I put forward a very simple proposition. In Letter #233 (“Grist for the Conspiracy Theorists”, October 26, 1998), I first speculated that central banks are attempting to control the Gold price, and then explained analytically the reasons why they may be pursuing such an activity. I also providedRead more

January 25, 1999 – The Internet offers the potential to become one of the greatest technological advances in the history of mankind. I truly expect that in time it will prove to be as significant a development as the printing press, the steam engine, and even as big and an important advancement as the microchip,Read more

January 11, 1999 – One of the biggest issues facing the Gold market over the past couple of years has been the weight of Gold sitting in European central banks. This Gold has been a problem, created in the run-up to the launch of the Euro because so many questions were left unanswered by theRead more

December 21, 1998 – We live in crazy times. Who would have thought that Sadam Hussein would outlast another US president? Or that Bill Clinton, a master of deceit who could be investigated for any number of allegations of dishonesty or worse, would be brought down by the blue dress of a 22-year old WhiteRead more

December 7, 1998 – It would be very easy here to let one’s emotions get the upper hand and to paint a bearish picture for Gold. However, it would not only be the wrong thing to do, it would be painting the wrong picture about Gold and its prospects. Gold looks like and feels likeRead more

November 16, 1998 – I approach all the markets from two different perspectives. I look at the technical side of the market to see what the charts are saying. I also look at the underlying fundamentals in order to determine value as an indication of what the likely outcome may be for the market price.Read more