Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20
THE STOCK MARKET BIG PICTURE - Video - 19th Nov 20
Reasons why Bitcoin is Treading at it's Highest Level Since 2017 and a Warning - 19th Nov 20
Media Celebrates after Trump’s Pro-Gold Fed Nominee Gets Blocked - 19th Nov 20
DJIA Short-term Stock Market Technical Trend Analysis - 19th Nov 20
Demoncracy Ushers in the Flu World Order How to Survive and Profit From What Is Coming - 19th Nov 20
US Bond Market: "When Investors Should Worry" - 18th Nov 20
Gold Remains the Best Pandemic Insurance - 18th Nov 20
GPU Fan Not Spinning FIX - How to Easily Extend the Life of Your Gaming PC System - 18th Nov 20
Dow Jones E-Mini Futures Tag 30k Twice – Setting Up Stock Market Double Top - 18th Nov 20
Edge Computing Is Leading the Next Great Tech Revolution - 18th Nov 20
This Chart Signals When Gold Stocks Will Explode - 17th Nov 20
Gold Price Momentous ally From 2000 Compared To SPY Stock Market and Nasdaq - 17th Nov 20
Creating Marketing Campaigns Using the Freedom of Information Act - 17th Nov 20
ILLEGITIMATE PRESIDENT - 17th Nov 20
Stock Market Uptrend in Process - 17th Nov 20
How My Friend Made $128,000 Investing in Stocks Without Knowing It - 16th Nov 20
Free-spending Biden and/or continued Fed stimulus will hike Gold prices - 16th Nov 20
Top Cheap Budgie Toys - Every Budgie Owner Should Have These Safe Bird Toys! - 16th Nov 20
Line Up For Your Jab to get your Covaids Freedom Pass and a 5% Work From Home Tax - 16th Nov 20
You May Have Overlooked These “Sleeper” Precious Metals - 16th Nov 20
Demystifying interesting facts about online Casinos - 16th Nov 20
What's Ahead for the Gold Market? - 15th Nov 20
Gold’s Momentous Rally From 2000 Compared To Stock Market SPY & QQQ - 15th Nov 20
Overclockers UK Quality of Custom Gaming System Build - OEM Windows Sticker? - 15th Nov 20
UK GCSE Exams 2021 CANCELLED! Grades Based on Mock Exams and Teacher Assessments - 15th Nov 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

George Soros Bullish on Gold Prices?

Commodities / Gold and Silver 2013 May 31, 2013 - 11:23 AM GMT

By: Money_Morning

Commodities

Tony Daltorio writes: As pointed out in a recent article by Money Morning Global Resource Specialist Peter Krauth, there is something interesting happening with gold prices.

Paper gold, controlled by Wall Street, is going down. But demand for physical gold all over the globe is going up every time that gold prices are down.


That's not the only place divergences are occurring in the global gold market. A divergence can even be seen in the difference between Wall Street speculators and commercial interests in the paper gold market.

The speculative momentum players continue piling on shorts, while commercial interests are following a path 180 degrees opposite.

The question remains for those investors interested in gold as to who will be right in the end. The short-term Wall Street speculators or more long-term players?

Speculators vs. Commercial Participants

The weekly commitment of traders report for the week ending May 21, issued by the Commodities Futures Trading Commission, showed the bearishness toward gold among traders continued to grow.

Large speculators' net long positions in gold futures and options continued falling to lows not seen in several years.

Managed money accounts lowered their exposure to gold to the lowest since the CFTC began this report back in September 2009. These accounts were also busy adding to short positions on gold.

Net long gold positions for non-commercial traders such as hedge funds are now at the lowest level since November 2008.

No surprise here. . .speculators hate gold and would rather speculate in stocks at the moment.

By the way, small traders are at the most bearish since February 2001. This is approximately when gold prices began their more-than-a-decade-long bull run.

But it's a completely different story when one looks at what commercial players - so-called "smart money" - are doing in the gold market.

As gold prices have fallen over the past several months, commercial traders have been busy investing in gold with new long positions in the yellow metal.

According to the CFTC's latest report, commercials have increased their net position in gold by over 185,000 contracts. Their level of bullishness is now at the highest since October 2008.

Central Banks Still Buying as Gold is Down

The International Monetary Fund issued a report on May 27 showing that central banks in emerging markets continued buying gold while the metal's price fell.

The IMF report listed Russia, Turkey, Belarus, Kazakhstan, Azerbaijan and Greece as buyers during the past few months.

The three former Soviet states - Belarus, Kazakhstan and Azerbaijan - added to their gold reserves at a 75% faster pace in April than in March. Russia continues to be the top purchaser globally of gold in recent months.

And whatever happened to Greece being forced to sell their gold holdings? It added to its gold reserves for the fourth month in a row in April.

Alexandra Knight, an economist at National Australia Bank, told Bloomberg, "We expect the trend of central bank buying to continue, especially in the emerging economies. The longer term trend for central banks to increase gold reserves remains intact."

Soros Bullish on Gold Prices?

Then there's George Soros.

The mainstream financial media has reported over and over again about how George Soros sold some of his holdings in the SPDR Gold Trust ETF (NYSEArca: GLD). The position was lowered in the first quarter of 2013 to 530,000 shares from 600,000 shares.

But the mainstream financial press largely ignored the latest 13-F release from the SEC for Soros Fund Management LLC. It reveals positions as of March 30, 2013.

According to an article from Bull Market Thinking, the 13-F showed that Soros Fund Management significantly added to its gold-related holdings.

The Soros Fund added 1.1 million shares of the Market Vectors Gold Miners ETF (NYSEArca: GDX) to bring the total to 2.666 million shares.

And yes, the Soros Fund did reduce its position in the Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ) to 1.2 million shares from 1.998 million shares. But a position of 1.51 million call options on that index was initiated.

Soros also maintained a $32 million position in individual gold mining stocks.

Looks like George Soros is not as bearish on gold as portrayed by the media.

For more on the divergence happening in the gold market, check out Peter Krauth's full analysis: Has the Great Gold Crash Divorced Bullion from Futures Prices?

Source :http://moneymorning.com/2013/05/29/with-gold-prices-down-heres-where-the-money-is-flowing/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules