Gold Price Change Since 2000 in Various Global Currencies

Still Digging Out But Comfortable and Safe

We got clobbered by the Northeastern US snowstorm.  The snow itself was about 25 inches, and was not all that wet which is good.   I hear from friends and family that Virginia and Maryland got it much worse.

But the drifting was rather impressive here in the hills to say the least.  And this is from someone who grew up in the lake effect snowbelt on the shores of Lake Erie.  Three to four foot drifts ran across the yard front and back, and of course literally buried the cars and the better part of the driveway.

But although we were ready for it, we never lost power, so thanks be to God for that.

My poor little snowblower was chugging its 22 year old Tecumseh engine's heart out, but it did the job.  I probably should get a new one with a bigger front scoop, but this one still starts first try and runs like a champ, and gets the job done.  Some of the newer ones seem a little 'tinny' by comparison.

We dug ourselves out, and helped an elderly neighbor get cleared out as well, and I am beat.  The most formidable barriers were the four feet high compacted snow hillocks at the street from the plows.

And of course we cleared a spot in the backyard for the Shih Tzu who is now mobile, although still a bit wobbly.

Now I have to take some people various places. The trains are not running here yet, and still life goes on.

So here are a few early charts.  I have also included an economic event calendar, and highlighted the 4Q GDP advance number and the FOMC rate decision.

See you tomorrow.

Shanghai Gold Exchange Withdrawals in 2015 Rise to 91% of Annual World Gold Production

The situation is nicely captured in these two simple charts.

The strains on supply are obvious, although it does take quite a bit of work to estimate the shrinkage of the 'gold float' of available supply.

Nothing here that could not be remedied by higher prices, if they were simply allowed to rise in reponse to physical tightness.

Gold is trading with an unusual duality:  as a synthetic derivative like those associated with the highly leverage financial paper markets , and as a commodity susceptiable to physical supply and demand.