Commodity Trade Mantra

Posts Tagged ‘SPDR Gold Shares’

Run to Gold as the Inflation Beast Rattles Its Cage

Portfolio-destroying inflation is around the corner because of reckless government spending and unsustainable debt, so stock up the bomb shelter and buy gold. The latest data suggests that the inflation beast is stirring from its long slumber, which means that the classic inflation hedge of gold is on the verge of a sustained rally.

Who Will Decide the Fate of Gold ETFs? The Fed or Donald Trump

Citigroup sees gold prices touching $1,400 levels ‘not seen since early 2013’, while the metal will likely slide to the $1,250 level if Clinton makes it to the White House. Citigroup believes that Trump’s protectionist ideas on external trade and immigration, if realized, suggest a US recession sooner rather than later. Investors to keep a watch on gold ETFs like GLD.

Gold Price Driven by Massive Speculation in Paper Gold

Speculation in paper gold is both an effect of the gold price and an important short-term driver of the gold price. It is therefore fair to say that although changes in GLD’s gold inventory don’t cause anything, they often reflect changes in speculative sentiment that at least on a short-term basis do have a significant influence on the gold price.

Can The Price Of Gold Break Above This Key Level?

The post-2011 Down trendline looks to be the line to focus on at the moment in determining the direction of the price of gold & should serve as stiff resistance for the time being, absent a Simone Biles-like vault over the line. The good news is that the GLD has already twice tested the trendline, in early July and early August. These tests should have served to weaken the trendline somewhat.

Unwinding of Excessive Gold Futures Longs - One of the Best Buying Opportunities

Gold sees major interim tops in bulls and bears alike whenever speculators’ long positions surge up to relatively-high levels. While these elite traders don’t control gold’s long-term trends driven by fundamentals, their collective trading can sure bully gold over the short term. The unwinding of speculators’ excessive gold futures longs offers some of the best mid-bull buying opportunities.

Bull Market in Gold Driven by Massive Gold Investment Buying

After shunning prudent portfolio diversification with gold for years, investors are finally starting to reestablish those essential positions. And since their collective gold holdings were so incredibly low heading into 2016, reflecting hyper-bearish sentiment, the gold investment buying has only begun. It will likely take years to complete, driving gold’s new bull higher on balance the entire time.

Massive Gold Investment Buying Overpowers Speculation & A New Bull Market Is Born

The magnitude of Gold investment buying seen so far this year is exceedingly bullish! Nothing like it has been witnessed since early 2009, when hedge funds flooded into gold after 2008’s once-in-a-century stock panic. Since investors have so aggressively taken the gold buying baton from gold futures speculators, the odds are stellar a new bull market in gold has been born!

Reasons for Traders to Be Fearful of Gold

The stock market’s worst January coincides with a chorus of predictions that the fall of gold has reached bottom from its lofty peak in 2011. Gold is the investment of the fearful & there’s fear of just about everything from recession to terrorism. On casual inspection, it’s easy to conclude that the price of gold has nowhere to go but up after a 4 year slide to $1,045. Look harder.

Here Is What Will Fuel The Mighty Upleg In Gold In 2016

With the gold positions of speculators & investors alike so radically skewed by the Fed’s extreme market distortions, vast mean-reversion buying is inevitable in 2016 to start to normalize gold investment back to reasonable levels. Coming off of such an anomalously-low base where virtually everyone loathes gold, all this gold buying is going to fuel a mighty gold upleg.

Radical Underinvestment in Gold Today is Super-Bullish

American investors are going to soon plow tens of billions of dollars back into gold in an attempt to regain some modicum of prudent portfolio diversification. While these capital flows will be small compared to the stock markets, they are massive relative to gold investment demand. All that buying is going to catapult gold prices far higher.

Not Owning Gold Bullion Shows “Ignorance of Monetary History”

Gold’s position is assured because of the total reliance of our debt-based monetary system on unsustainable inflation. The yearly, “In Gold We Trust” report states that “we have all become guinea pigs of an unprecedented attempt at re-inflation.” QE and negative interest rates “are a direct consequence of a systemic addiction to inflation.”

American Futures Speculators - The Primary Driver Of Gold Is Bullish

Gold’s primary driver in recent years has been the collective positions of American futures speculators. Their hyper-leveraged bets have given them outsized influence on gold prices & today their gold futures bets are very bearish. When this selling reverses into buying, it has the potential to fuel a sharp & major gold rally.

Gold Futures Short Covering Rally

In the past, speculator short covering frenzies have pushed gold high enough to ignite new long-side buying by speculators. If this next short covering gold rally coincides with the lofty US stock markets and/or parabolic US dollar finally rolling over, there will be a big resurgence in gold investment demand way beyond speculator short covering.

A final purge to $700? What Gold Bulls' surrender might look like

At this point in a bear market, attention turns toward anticipating what “capitulation” might look like – that phase when remaining loyalists surrender hope and liquidate in disgust. While there are inklings that gold has fallen far from favor among traders, if a comprehensive capitulation is to finish this move it hasn’t nearly happened yet.

Buying Gold Bullion Coins is Buying Peace of Mind

Historically, gold bugs have been easy targets for ridicule as they are portrayed as anti-government nut jobs awaiting financial Armageddon. However, since the financial crisis, an increasing number of investors & even the most ardent stock investment managers allocate a portion of their portfolios to gold – just in case.

Ukraine Currency Collapses Nearly 70% Against Gold In 4 Months

Year to date, gold in hryvnia has surged by 69% from 9,992/oz to 16,880/oz, or more correctly, Ukraine’s national currency has collapsed by 69% against gold in less than four months. This week alone hryvnia has fallen by 7% against gold. The lucky few who own physical gold are being protected from the currency collapse.

Gold Is On Sale - So Is It Time To Buy Gold Now?

By now, everyone knows of the shortages in the gold market; JPMorgan has to be as aware of that as the rest of us. It just isn’t safe for them to continue to lean on the market. Being aware, it looks like they are taking the bet that gold will rebound, so they could do well on the other side of the trade.

GOLD ETF Investors Unable To Get Physical Gold

Respected investment managers, Grant Williams and John Hathaway said that the Custodians of the GLD ETF or SPDR Gold Shares have refused to give people physical gold in exchange for the shares as investors are entitled too.

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