Gold Equilibrium
Why the U.S. could return to a gold standard at $1300/oz without risk of inflation or deflation There are two prices of gold. There is the market spot price of gold (POG) and an optimum POG which represents the price…
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Market Indices and Gold
Measurement requires a standard of reference. We accept this universally in the mathematical and scientific world. Suggesting that the length of the meter or the volume of a liter be constantly changed and tinkered with would defy common sense. Money…
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Kendall Rule Revisited
Yellen’s Inadvertent Gold Standard Nathan Lewis posted an excellent piece on Forbes about gold’s correlation with the dollar during Yellen’s tenure as Fed Chair. Lewis asks the question, “have we effectively recreated the Bretton Woods gold standard system?” Bretton Woods linked…
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More Thoughts on Gold
A ratio of two ratios determines the dollar price of gold. Dollar supply (base money) ———————————— Dollar demand (base money) ——————————————————– …
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Today’s Gold Price
Since the September 2011 decline in the price of gold from $1900 to $1050, gold watchers continue to suffer from post-traumatic gold decline syndrome, PTGDS. If the POG can fall from $1900 to $1050, it can just as easily fall from…
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Kashkari’s Head-Scratching Tweet
Academia has abandoned any serious interest in understanding a gold standard. Going back to Amsterdam in the late 1600s, there is a 300-year history of successful implementation of gold standards among developed countries. Data is available to study the result of…
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Returning to a Gold Standard
To understand gold requires first recognizing its proper orientation. Gold is unlike any other commodity, good, or service. Its value does not change. Its overwhelming purpose is as a monetary proxy. When viewing the monetary world, gold is at the…
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Gold Industry Analysis
The misunderstanding of gold and the perpetuation of gold fallacies by academics, economists, and PhDs is easily explainable. Gold is the kryptonite to their errant economic theory. Gold signals the continuous error of the floating fiat PhD standard. Economists have to dismiss gold…
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Kendall Rule Update
“As long as excess reserves persist, with IOR, in amounts necessary to facilitate Federal Reserve control of the price of interest, the trend for the minimum price of gold is determinative by its average price over the duration of debt.”…
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Money, Commodities, and Bitcoin
Money has three roles; a medium of exchange, store of value, and unit of account. A unit of account is the most important role of money and the least understood. A unit of account is a monetary standard of reference. …
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