More from @profitsplusid

bob coleman

@profitsplusid

11 Jan

@MetreSteven

1/11 FinTwit stars, we ask thee!

To Print or not to Print, that is the question.
@MetreSteven @SantiagoAuFund @LukeGromen @Lee_Adler @GeorgeGammon @PalisadesRadio @alaidi @lisaabramowicz1 @silverguru22 @42macroDDale @DiMartinoBooth @scientificecon @ErikSTownsend @fleckcap

2/11 There are many smart individuals on Twitter that may not agree on everything. However, one thing we can agree on is that the Federal Reserve has expanded its balance sheet to almost $9 Trillion.

3/11 Is this the reason why asset prices have melted up over the years?

Some will say these reserves on the Fed’s balance sheet are locked up and can not be spent. Others will argue the reserves are the big reason for inflated asset prices.

Read 13 tweets

bob coleman

@profitsplusid

7 Jan

Yields are rising not from inflation, since that is already in the market. Yields are rising because of the govt’s issuance of more paper with less Federal Reserve intervention. Keep it simple!

The Dollar is going down with yields rising. Why? Anticipating an eventual slowdown in the economy due to falling financial markets and rising rates.
At the end of the day, a decline in financial markets or the economy may bring the Fed back around to increase QE.

What the global public is learning about inflation post covid is that hard assets can rise in value regardless of the economy. Example used cars, industrial metals, precious metals, consumer goods, etc

Read 4 tweets

bob coleman

@profitsplusid

13 Aug 21

1/6Being in the markets since 1992, I have seen a lot. One thing I have learned is that prices can be dictated by events “at the margin” versus overall supply/demand. Large players understand this and use the knowledge to push order flow or price action.

2/6Case in point, the 2008 silver crash. The following article was used to provide this information.
seekingalpha.com/article/94767-…

“the 2000 tonne increase in SLV inventory throughout 2008 amounted to about 7 percent of overall annual silver demand”

3/6One would ask how could the price drop from $21 to $12 over this time? The following data shows a flurry of redemptions in August of 2008 in SLV which heavily impacted the price. Other markets reacted similarly.

Read 6 tweets

bob coleman

@profitsplusid

2 Jul 21

1/ The Silver Exchange for Physical premium has been staying unusually elevated, even as we have seen lighter physical retail volume from June. Signaling tightness in the 1000 oz bar market.The retail premiums have been coming down simply because retail inventory has been rising

2/ As the precious metals market continues to deleverage, these EFP premiums could be a sign of continued rising costs within the industry as investors in physical metal becomes more assertive?

3/ Basically, the cost to carry physical continues to impact larger financial players who traditionally made money off of spreads and financing. This lends credence to my argument, that physical investors (strong hands) can play a more dominant role in impacting

Read 7 tweets

bob coleman

@profitsplusid

22 Jun 21

What is unallocated gold or silver?
There is no way to be sure how much available gold or silver there is for one simple reason. The unallocated positions held by account holders are not actual metal but liabilities. Here is the IMF’s understanding of unallocated gold.

imf.org/external/np/st…

“Account providers hold title to a reserve base of physical (allocated) gold and issue claims to account holders denominated in unallocated gold. The account holder does not hold title to physical gold

but instead holds an unsecured claim against the account provider, in effect a deposit with the account provider. The account holder does not have legal ownership of the physical gold but is an unsecured depositor. The account holder is a creditor

Read 5 tweets