Hedge Funds Plow Money Into Gold - Is The Correction Almost Over?

S

Silver2012

New Member
Hedge funds and other big speculators plowed new money into gold even after the precious metal posted a record loss in dollar terms this week, according to trading data on Friday that also showed inflows for many other commodities.

[youtube]http://www.youtube.com/watch?v=8IMR9s8gki0[/youtube]

The net long position in gold futures on New York's COMEX held by money managers, including hedge funds, rose by 5,495 contracts to 61,579, the CFTC Commitment of Traders data showed. Open interest in gold, a measure of market liquidity, rose by a staggering 24 percent.

Source: http://wp.me/p2hryu-yb
 
And Eric Sprott's just taken a direct stake in Birimian Gold (ASX:BGS) - I hold & am bullish BGS - I just can't believe the announcement today - If hedge funds are getting involved too with the market generally this all looks vv positive to me...
 
I wish we would just get it over and done with. If silver is going to $17 and gold to $1000, just hurry up and happen, not this boring sideways nonsense. It's like going in for a needle or a blood test, the waiting part is the worst.
 
are they getting into paper or phys gold?

The difefrence is very significant
 
Argent47 said:
hiho said:
are they getting into paper or phys gold?

The difefrence is very significant
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Why is this?
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The significance lies in the supossed separation of the phys to ETF paper market. If this phenomena is occurring we should see the paper ETF price plumett further as these big boys get out of paper and into physical.
 
They will be buying into paper derivatives with stop losses in place. The bullion banks will drop another bunch of contracts in the futures market, triggering all the stops and another waterfall in price will ensue.

Large Funds taking positions in physical bullion is not so good for liquidity while ever gold is not recognised as a reserve asset.
 
hiho said:
The significance lies in the supossed separation of the phys to ETF paper market. If this phenomena is occurring we should see the paper ETF price plumett further as these big boys get out of paper and into physical.
Click to expand...


Although I wish this would happen, I believe that the most this will do is extend the current strain on metal supply, further increasing in premiums on desirable coins or bullion brands until demand can be fulfilled.

I'd feel safer if the hedge funds invested in paper, driving the spot price to $40, rather than a $20 spot +$20 premium (which may be only temporary until supply catches up with demand).
 
Argent47 said:
I'd feel safer if the hedge funds invested in paper, driving the spot price to $40, rather than a $20 spot +$20 premium (which may be only temporary until supply catches up with demand).
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Get that man a brandy! ;)
 
VRS said:
Argent47 said:
I'd feel safer if the hedge funds invested in paper, driving the spot price to $40, rather than a $20 spot +$20 premium (which may be only temporary until supply catches up with demand).
Click to expand...

Get that man a brandy! ;)
Click to expand...

We know of the disconnect between spot (paper) and physical; we have seen the premiums rise this last week to create a more realistic differential. I wonder if one day we will ever see two different spot prices that will reflect each distinct trade.
 
sammysilver said:
VRS said:
Argent47 said:
I'd feel safer if the hedge funds invested in paper, driving the spot price to $40, rather than a $20 spot +$20 premium (which may be only temporary until supply catches up with demand).
Click to expand...

Get that man a brandy! ;)
Click to expand...

We know of the disconnect between spot (paper) and physical; we have seen the premiums rise this last week to create a more realistic differential. I wonder if one day we will ever see two different spot prices that will reflect each distinct trade.
Click to expand...

You mean 'real silver' (ASX:RSLV) and 'imaginary silver' (ASX:ISLV)?

(I just know someone here is going to go look those up...)
 
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