Today's reported holdings dropped about 4.2 tons bringing the total to 784.22 tons. That is a mere 7.3 tons above the lowest level posted this year back in May.
One can speculate whether or not the holdings with set a new low for the year as we move ahead but in my mind, it is indisputable, that investors continue leaving gold and buying stocks, as that is where the gains are to be found.
I think it also essential to remind the more technical analysis-oriented investment/trading crowd out there, that the large speculators (hedge funds and other large reportables) still remain positioned on the NET LONG side of this market. That is based on the most recent Commitment of Traders report. As these key technical support levels on the charts give way, those positions are increasingly underwater and are being liquidated. It is that long side liquidation, coupled with an increasing short side contingent, that raises the very strong possibility of seeing gold change handles from "12" to "11" once more.
Time will tell.
Ahhh! The smell of dead dreams !
ReplyDeleteWhy on earth would any investment manager consider gold with the dollar soaring and U.S. equities and Fixed Income reporting the best 5 year performance in an entire generation?
ReplyDeleteNo wonder the institutions are dumping, its pretty much a dead asset that pays zero dividends.
Buying a 2-yr. German Bund that pays a negative 7 b.p. is better than gold, because the negative interest rate is easier to swallow than the storage costs and commissions associated by buying physical gold.
And the price of the German Bund with date certain maturity is 100% guaranteed, whereas gold could be anywhere between $600 and $1,500 in two years.
Who the heck wants to take that kind of risk?
Good points. I just saw a new goldbug claim; Shanghai Gold Exchange (SGE) announced they were launching a new precious metal platform set to begin buying, selling, and trading gold in the Yuan currency on Sept. 18 (actually new currency traders). Now Goldbugs say:
Delete"for the first time there will be an exchange that offers customers assurances of protected and secure transactions made without the threat of price manipulation".
Supposedly this means gold will definitely move above $2K within a year, where the natural price belongs. LOL
I'll pay $10,000 to anyone here who can convince Eric King to post a chart of the DJIA hitting a record high today and GLD making 3-year lows, with the headline:
ReplyDelete"PRESENTED WITHOUT COMMENT"
lol.....
Mark, the truth of the matter is King's day job is as an accountant. How else would he know that his 40-50-60 savvy pros are billionaires? KWN is his hobby. Classic example of the definition of insanity displayed day in and day out by the Rockpile Gang.
DeleteAnd then, there's "research" like this. omg, how hilarious.
ReplyDeletehttp://oilprice.com/Metals/Commodities/Mining-Sector-To-Experience-Major-Investment-Over-Coming-Months.html
(Going by headline) Because Billionaires want to invest in one of the most in-debt industry on earth? The number of miners out there doubles over a 11 year span, and this is a good place to invest? Sure! ...LOL
DeleteAs was leaked out yesterday, the Fed did not remove their "Considerable time period for raising interest rates" statement. They left it in.
ReplyDeleteThat message would look to be for the stock markets, saying there is no reason to get out of stocks as we have no plans to raise interest rates until that elusive recovery comes.
Gold does not seem to like 0% interest rates indefinitely as much as the stock markets do.
Steve - about Queenie
ReplyDeleteThis is the story of my life: http://www.dailymotion.com/video/xg28et_the-black-adder-season-2-ep-02-part-1-2_shortfilms
"Who's Queen?"
Hope you guys have your seat belts on, it smells like short squeeze all over.. Have been buying my juniors, for the past few days, sold my puts... It's game on! One way or the other it's a win win for gold at the moment in my opinion . Silver is leading, already tested lows, miners are not moving, in fact they are well off the lows, and the complacency in this great blog is about to hit new highs! I m all in, let's see how it plays out. It went well so far this year.. One more time Sam please. Haha.
ReplyDeleteHeads you win tail you win.
DeleteLol.
Good point Zhang, I would say gold rising or falling is much more about the dollars value.
ReplyDeleteAs the usd index falls gold goes up as it rises and gold goes down.
A 10 year usd chart shows this inverse relationship with gold very clearly.
I think the point you miss is, if endless QE is needed this would perhaps negatively affect the dollars value one would think.
So far no one seems to care if they print trillions of endless dollars.
The markets seem to have a lot of belief in what the Fed is doing still.
It seems QE is much more about the wealth effect, reflating the asset bubbles that popped in 2008 like the stock market and housing.
ReplyDeleteThe challenge now is keeping them reflated it would seem.
If the stock market falls then pension funds for example lose huge money that they have gained back now since the 2008 crash.
History does show money printing/QE is always the beginning of the end of a currency if it cannot be stopped.
So if they can stop then should not be a problem I guess.
I have to say thanks a lot once more to both Dan, Lan, and some other less frequent but sensible contributors to set the bar so high and for their dedication to this blog.
ReplyDeleteThis blog is protected from Trolls because after a few messages, they realize that they only make fools of themselves thanks to the immediate answers they received.
I'm sure they are not used to that, and soon prefer to leave the blog and go visit other websites where nobody will dare contradict them so openly and with details.
I really wish this blog will gain in popularity. Hope it is the case.
Keep us posted! :)
http://www.oftwominds.com/blogsept14/USD9-14.html
ReplyDeleteZhang Lan
ReplyDeleteSorry to say CNBC is all over the Alibaba IPO with the expected fear / xenophobia about the biggest IPO ever.
nidhi singh; why don't you shit in your hat and see if it still fits?
ReplyDeletelol it's going to be hard to beat that one, I'm gonna have to be extra imaginative :)
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