The initial reaction in the US equities market (futures, as this was before the opening bell) was down. But it was muted, and then in a few hours turned around
Each stock represents a business. Presumably, if
However, the stock market disagreed. It
Not only did the stock market go up, so did the euro. As did US Treasury bonds. And, finally, gold and silver. What is the one thing that these all have in common?
It is possible to borrow to buy these assets.
We read this as a garden-variety day of credit expansion. Folks, this is how the monetary system
Stock analysts have a wealth of material to study the fundamentals of public companies. We leave that work
We will show charts of the fundamental prices we calculate. But first, a look at the prices of the metals and gold-silver ratio.
Next, this is a graph of the gold price measured in silver, otherwise known as the gold to silver ratio. It moved up a bit, though down on Friday.
In this graph, we show both bid and offer prices. If you were to sell gold on the bid and buy silver at the ask, that is
Here is the gold graph.
We had a
Our old model shows an increase in the gold fundamental price of $19 ($1,267 to $1,286). Our new software also shows an increase, though smaller and at a higher level ($1,330 to $1,334). We plan an article to discuss this difference.
Now let’s look at silver.
In silver, there is a slight increase in abundance and decrease in scarcity as the price has risen.
Our old model shows an increase in the silver fundamental price of $0.05 ($16.12 to $16.17). Our new software, however, shows a decease and not a small one ($17.97 to $17.62). Here is a graph.
Note that the fundamental price (new software platform) is
- Source, Sprott Money