LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

COT Gold, Silver and US Dollar Index Report - May, 24, 2019
By: GoldSeek.com

BIS reduces its gold swaps by two-thirds over last two months
By: Robert Lambourne

Gold Mid-Tiers’ Q1’19 Fundamentals
By: Adam Hamilton, Zeal Research

China Threatens to Stop Exports of Vital “Rare Earth” Metals to U.S
By: Mike Gleason

Every Bounce In Tesla Stock Can Be Shorted
By: Dave Kranzler

Another Gold Buyout Takes Center Stage
By: Marin Katusa

GoldSeek Radio Nugget: Laurence J. Kotlikoff
By: Chris Waltzek Ph.D., GoldSeek Radio

Does Ray Dalio really not know better than to invest in GLD?
By: Chris Powell, GATA

Precious Metals Update Video: Run for the safe havens!
By: Ira Epstein

Why Microsoft Shares Have Become a Safe Haven
By: Rick Ackerman, Rick's Picks

 
Search

GoldSeek Web

 
Great News For (The Remaining) Gold Bugs: Gold AND Silver Futures Speculators Are Now Net Short


By: John Rubino



 -- Published: Sunday, 19 August 2018 | Print  | Disqus 

Google “yield curve inversion” and you’ll see that analysts have been waiting for this indicator to send its big signal for years. It’s getting close, so expect a flood of breathless/ominous headlines when it finally happens.

The precious metals market has a similarly rare and portentous indicator: “net short speculators.” But today this one actually happened. In the latest commitment of traders (COT) report, both silver and gold speculators finally took on more short positions than long. This is rare because speculators are almost always net long – that is, betting that precious metals will go up rather than down. And it matters because speculators are usually wrong at big turning points. In other words, when they’re convinced they’re right, they’re usually wrong. And this week they became just about as certain as they’ve ever been that precious metals are going to tank.

Here’s gold…

Gold COT report speculators

… and silver:

Silver COT report speculators

Here’s the same stat for gold in graphical form, with the gray bars representing speculator positions. What used to be a big long bet has evaporated:

Gold COT report chart speculators

A similar apparent capitulation happened this week in the precious metals mining stocks, with some huge drops in securities that were already way down. The GDX gold mining stock ETF is pretty much representative:

GDX share price speculators

This kind of quick, hard move is often what it takes to set the table for better times. Nothing is guaranteed in life, but paper market speculators abandoning hope while physical demand from China, India and Russia remains strong does seem to create a low-risk, high-potential-return entry point for both bullion and mining stocks.

 


| Digg This Article
 -- Published: Sunday, 19 August 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus







 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.