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Tag: inflation

Derivatives Market Reaches New High

Derivatives Market Reaches New High

A combination of fractional reserve banking, bank leverage, money printing, derivative manufacturing and government borrowing has been the reason behind much of the global GDP growth over the past 40 years. This market is now worth a staggering $1 + quadrillion, ¬†that’s $1,000,000,000,000,000 of essentially worthless derivatives where buyers only need to put up a fraction of the purchase price. Add in $250 trillion of government debt around the world and things start to look pretty shaky. During 2012, the…

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COMEX Deliverable Gold Bullion Reaches a 10-year Low

COMEX Deliverable Gold Bullion Reaches a 10-year Low

Back in August, the number of claims per physical ounce of gold stored in COMEX warehouses reached 50. That’s 50 owners for every ounce of gold available for delivery. The physical gold rout has continued and the number of owners per physical ounce, now stands at 54.6, a level not seen since 2003. This comes at a time when the global demand for physical gold is rising, led by Asia¬†where Chinese gold consumption is expected to grow 29% this year….

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Where has all the Gold Gone?

Where has all the Gold Gone?

The total amount of gold available for delivery on the COMEX has fallen to a record low. There are now up to 50 owners for every ounce of gold available for delivery. The total amount of gold available for delivery in COMEX warehouses currently totals around 774,000 ounces, or 24 tons; 29 tons were requested for delivery in July. With the August delivery date coming up someone should start getting worried. It would appear that buying gold nowadays does not…

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Gold is not an Inflation Beating Long Term Investment

Gold is not an Inflation Beating Long Term Investment

Gold is often quoted as being a long term inflation beating instrument. However, in reality it is far from that. Over the past 23 years since 1990, the price of gold has risen 74.8%, from an inflation adjusted price of $730 per troy ounce in January 1990, to July’s 2013s average price of $1276 per troy ounce. A compounded annual growth rate of around 2.57%. Furthermore, extending this study over 46 years, all the way back to January 1967, when…

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