by Alasdair MacLeod
Gold Money
Measured in gold, the dollar’s decline is accelerating as foreigners bail out and gold is the go-to refuge. It is a panic on a global scale which looks like only just starting.
[…] After last week’s dramatic selloff, gold and silver rallied this week, spectacularly in the case of gold. In early morning European trade today, gold was $3221, up $190 from last Friday’s close — a new record level. Silver was $31.46, up $1.88. But since last week’s dramatic selloff, silver has been left way behind gold, reflected in our headline chart.
So what’s driving these two metals?
Part of the reason for this disparity is that Comex dealers have a better understanding of industrial demand factors than of money. This has led them into the wrong contract, which is illustrated in the chart below of price and open interests.