Articles related to Carry Trade
 
FoFOA
All Paper is STILL a short position on gold 
The gold derivatives pyramid is a vigorous free market creature. It cannot be put down with a simple declaration that the paper is no longer redeemable in gold, as governments did with currency. It is a short selling scheme that has become a trap from which few short sellers will escape
Wednesday, April 17, 2019
Antal E. Fekete - Gold University
More dress rehearsal for the last contango
You have to remember that the basis is widely used as a guide in the huge arbitrage operations between gold holdings and dollar balances and in the gold carry trade. To participate in this arbitrage you must have gold on deposit in Comex warehouses. But with the vanishing of the gold basis the profitability of this arbitrage as well as that of the gold carry trade has been drying up, which explains the dwindling of warehouse stocks.
Tuesday, January 15, 2019
Rob Kirby - Kirby Analytics
Forensic Examination of the Gold Carry Trade 

Saturday, October 13, 2018
Chris Powell - GATA
Ambrose Evans-Pritchard: Warnings of financial blowup in Hong Kong
Hong Kong's currency regime is coming under serious strain as the U.S. Federal Reserve steps up the pace of monetary tightening, threatening to set off an unpredictable chain of events in the world's most overstretched financial system. The enclave's U.S. dollar peg -- usually rock solid -- has suddenly become the focus of global markets after the currency fell last week to its lowest level since the current trading band was established in 2005. Analysts say the authorities may soon be compelled
Monday, March 5, 2018
Keith Weiner - Monetary Metals
Thoughtful Disagreement with Ted Butler 
Dear Mr Butler: In your article of 2 October, entitled Thoughtful Disagreement, you say, “someone will come up with the thoughtful disagreement that makes the body of my premise invalid or the price of silver will validate the premise by exploding.” I will take you up on your request. You state your case in this paragraph: “Here are the issues. Silver (and gold) prices are set by paper dealings on the COMEX by a few large speculators (banks and managed money traders), to the exclusion of input f
Wednesday, October 4, 2017
John Butler - Goldmoney
The Golden Revolution, Revisited: Chapter 10
This Insight continues the serial publication of the new, Revisited edition of my book, The Golden Revolution (John Wiley and Sons, 2012). (The first instalment can be found here.) The book is being published by Goldmoney and will also appear as a special series of Goldmoney Insights over the coming months. This instalment comprises the fifth chapter of Section II.View the Entire Research Piece as a PDF here.An Unstable Equilibrium“A Nash equilibrium is defined as a strategy combination with the
Wednesday, September 13, 2017
Sprott Money
Bitcoin Has No Yield, but Gold Does
Last week I said: It is commonly accepted to say the dollar is “printed”, but we can see from this line of thinking it is really borrowed. There is a real borrower on the other side of the transaction, and that borrower has powerful motivations to keep paying to service the debt. Bitcoin has no backing. Bitcoin is created out of thin air, the way people say of the dollar. The quantity of bitcoins created may be strictly limited by Satoshi’s design. We referred to the dollar as being borrowed
Thursday, August 17, 2017
Keith Weiner - Monetary Metals
Bitcoin Has No Yield, but Gold Does Report 13 August 2017
Last week, we said: It is commonly accepted to say the dollar is “printed”, but we can see from this line of thinking it is really borrowed. There is a real borrower on the other side of the transaction, and that borrower has powerful motivations to keep paying to service the debt. Bitcoin has no backing. Bitcoin is created out of thin air, the way people say of the dollar. The quantity of bitcoins created may be strictly limited by Satoshi’s design. We referred to the dollar as being borrowed i
Monday, August 14, 2017
FOFOA - FoFOA
How Gold is Different
"The present world gold market negates the true value of gold by removing the “real demand” that “gold settlement” creates! Break the mechanics of this market and you will find that gold is the most valuable currency in today’s currency arena. Many investors, today think that the answer to this dilemma is for traders to take delivery and cause a short squeeze. My friend, in this arena, taking delivery means settling in cash! No, this market will not be destroyed by anyone but itself. ...
Friday, May 5, 2017
Jim Willie CB - Hat Trick Letter
Gold Standard Challenges
Scattered recent analysis has centered upon the Gold Standard and its viability within the global financial system. The topic is certainly very blurred and at times confusing. Consider a recent article by a competent analyst Charles Hugh Smith of the site OfTwoMinds on the practicality of gold used as a standard. The article is entitled “The Problem With Gold-Backed Currencies” (which is found HERE and also on Lew Rockwell site HERE). He makes several points, many good ones. In the Jackass opini
Saturday, April 8, 2017
Chris Powell - GATA
Central banks may have been evil with gold but not stupid
In commentary yesterday headlined "Will the Fed Tell Every American to Buy Gold Before It Destroys the Dollar?," Swiss gold fund manager Egon von Greyerz mocked Western central banks for selling so much of their gold at market lows between 1999 and 2004: https://goldswitzerland.com/will-the-fed-tell-every-american-to-buy-gold... Von Greyerz suggests that this was errant stupidity by the central banks. But there is a more plausible scenario, a scenario in which the gold sales by Western central
Sunday, February 26, 2017
Axel Merk - Merk Fund
U.S. Exorbitant Privilege At Risk!
Axel Merk, Merk Investments February 8, 2017  Follow @AxelMerk Tweet      If the road to hell is paved with good intentions, American’s exorbitant privilege might be at risk with broad implications for the U.S. dollar and investors’ portfolios. Let me explain. The U.S. was the anchor o
Wednesday, February 8, 2017
Chris Powell - GATA
What was the 'strong-dollar policy' except gold leasing and price suppression
Financial news organizations tonight are full of reports about the imminent demise of the U.S. government's longstanding "strong-dollar policy," what with President-elect Trump having declared in an interview with The Wall Street Journal that the dollar is "too strong." The Journal's headline is "Trump Comments Signal Shift in Approach to U.S. Dollar": http://www.wsj.com/articles/trump-comments-signal-shift-in-approach-to-u... The headline in the Financial Times is "Trump Team Shifts Further fro
Wednesday, January 18, 2017
Andy Hoffman - Miles Franklin
2017 – The Year of Monetary Revolution
In the past month, I’ve espoused many beliefs of what 2017 will bring – deeming it to likely be a year of money printing and draconian government actions.  In fact, following an historic year of political, economic, and monetary change, the best possible description for what I anticipate in the next 12 months, is “monetary revolution.”  Which, in turn, may catalyze the most dramatic status quo changes of our lifetimes, for anyone born in the post-War era. Never before has the world faced a man-m
Monday, January 2, 2017
Julian D. W. Phillips - Gold Forecaster
Gold and Silver Market Morning: Dec 15 2016 - Gold and Silver thumped by Fed statement!
Gold Today–New York closed at $1,142.60yesterday after closing at $1,158.6 on the 13th December.London opened again at $1,136.80 today.Overall the dollar is much stronger against global currencies today.-The $: € was stronger at $1.0478: €1 from $1.0649: €1 yesterday.-The Dollar index was stronger at 102.54 from 100.87 yesterday. -The Yen was weaker at 117.81: $1 from yesterday’s 114.95 against the dollar. -The Yuan was much weaker at 6.9352: $1 from 6.9025: $1 yesterday. -The Pound Sterling was
Thursday, December 15, 2016
Graham Summer - Gains Pains & Capital
The Bank of Japan Has Primed the Market For a Crash
This is getting outright ridiculous. The Bank of Japan is now depreciating the Yen against the $USD on an almost hourly basis. This is the Yen carry trade. And it’s the SINGLE BIGGEST DRIVER OF THE MARKETS TODAY. As you can see, in the last two weeks, the S&P 500 has following this pair almost tick for tick. I want to be clear here… for a MAJOR world currency to move like this is almost unprecedented. By some metrics, the Yen is now moving like a currency from a developing 3rd world country. Th
Monday, December 12, 2016
Graham Summer - Gains Pains & Capital
Is Japan About to Ignite the $10 Trillion $USD Carry Trade
It is said that history has a sense of irony. The latest US election is not an exception. Consider the following… 1.     Donald Trump campaigned aggressively on trade… particularly his opposing of the fact that the US gets taken advantage of by foreign nations via bad trade deals. 2.     Trump wins the Presidency on November 8, 2016. 3.     US trade gets royally screwed in the currency markets. This is not conspiracy theory. Since Trump won the Presidency, Japan has absolutely SHREDDED the Yen r
Friday, December 2, 2016
Julian D. W. Phillips - Gold Forecaster
Gold and Silver Market Morning: Nov-24-2016 -- Gold and Silver break down through support!
Gold Today –New York closed at $1,188.60 yesterday after the previous close of $1,212.00 London opened at $1,185.45.Overall the dollar was much stronger against global currencies except sterling.-The $: € was stronger at $1.0526: €1 from $1.0603: €1 yesterday.-The Dollar index was a weaker at 101.95 from 101.20 yesterday. -The Yen was weaker at 113.15: $1 from yesterday’s 111.06 against the dollar. -The Yuan was weaker at 6.9278: $1 from 6.9055: $1 yesterday. -The Pound Sterling was stronger at
Friday, November 25, 2016
Przemyslaw Radomski CFA - SunshineProfits
Are Japanese Yen and Gold Moving in Tandem
More and more analysts are pointing out the tight correlation between the Japanese yen and the price of gold. Let’s thus investigate the link between these two assets. The chart below shows the long-term relationship between the yellow metal and the USD/JPY exchange rate. At first glance, there is no strong, clear pattern. Surely, gold prices rose in the 1970s and the 2000s, when the U.S. dollar weakened against the yen. But the Japanese currency also strengthened from the mid-1980 to mid-1990,
Friday, November 18, 2016
Sprott Money
Backwardation Profit Taking - Keith Weiner
The big news this week is that Donald Trump was elected to be the next president of the United States. Whether due to his comments about restructuring the government debt, tariffs on imported goods, or other economic concerns, many expected news of his election to push up the price of gold. They were wrong. Every day since last Friday (November 4) has seen the price of gold falling. From a peak of over $1308, the price fell to $1227 on Friday. There was a rally from $1269 to $1337 on the evening
Tuesday, November 15, 2016
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