Keith Weiner's Blog

Something extraordinary occurred last week. On Wednesday, the Fed made a routine announcement. That day, the price of silver was rising, but not out of the normal. Fireworks began last Thursday, and in 6 hours, the price of silver skyrocketed by 5%.

It was all over the news last week, both mainstream and gold sites. Barclays was caught manipulating the gold price. They were fined £26M, and forced to pay a client who was damaged by their action.

For a long time, many in the gold and silver communities have been saying that the prices of the monetary metals are manipulated. Recently, one particular allegation came to prominence because it was asserted by the German regulator BaFin.

The basic idea of capital controls is that the government thinks it can tell the difference between “good” and “bad” types of money moving in or out. As we’ll see below, arbitragers are clever and will do whatever it takes to make their transactions look like the “good” kind.

In looking at supply/demand fundmentals for the metals, particularly silver, Keith Weiner writes, "There is absolutely no basis...to call for higher prices here."

Medieval thinkers were tempted to believe that if you throw a rock it flies straight until it runs out of force, and then it falls straight down.

The lower the rate of interest falls, the more it destabilizes the system because it makes the debtors more brittle. The dollar system has, to borrow a phrase from Ayn Rand, blackmailed people not by their vices, but by their virtues.

I just saw this fascinating video of a bunch of metronomes that begin ticking out of sync with one another, but slowly line up until they all beat in unison.

There is a tradable approach to analyzing the fundamentals of supply and demand in the monetary metals markets.

In this Part V, we discuss the end of the rising cycle and the start of the falling cycle. We examine its dynamics and its mode of capital destruction. Lastly we look at the response of the central bank.