13 Dec 2016
by Keith Weiner, Sprott Money:
The price action was mixed this week. Those hoping for dollar declines in gold terms were disappointed. However, silver gave them a sop as the price of the buck declined by one one-hundredth of a gram of silver. In Monetarist terms, gold went down $18 and silver up 11 cents.
Monetarism, in its insistence that the dollar be used to measure gold, is in denial that the value of the dollar is unstable. Everyone knows that the Fed tries to devalue the dollar at 2 percent per annum (as it reckons it), yet insists on using it as the meter stick for measuring economic value.
The big story this week is the silver manipulation lawsuit. We remain flabbergasted that people think the price of a commodity could be suppressed by 75% (or a lot more, by some allegations) for years. We also note that the anger is not on the part of silver buyers. It’s would-be sellers who are upset. They wanted to sell at higher prices, and they allege the banks beat them to it, and the price fell before they could unload.
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