Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
This Dividend Aristocrat Is Leading the 5G Revolution - 22nd July 19
What the World Doesn’t Need Now is Lower Interest Rates - 22nd July 19
My Biggest 'Fear' For Silver - 22nd July 19
Reasons to Buy Pre-Owned Luxury Car from a Certified Dealer - 22nd July 19
Stock Market Increasing Technical Weakness - 22nd July 19
What Could The Next Gold Rally Look Like? - 22nd July 19
Stock Markets Setting Up For A Volatility Explosion – Are You Ready? - 22nd July 19
Anatomy of an Impulse Move in Gold and Silver Precious Metals - 22nd July 19
What you Really need to Know about the Stock Market - 22nd July 19
Has Next UK Financial Crisis Just Started? Bank Accounts Being Frozen - 21st July 19
Silver to Continue Lagging Gold, Will Struggle to Overcome $17 - 21st July 19
What’s With all the Weird Weather?  - 21st July 19
Halifax Stopping Customers Withdrawing Funds Online - UK Brexit Banking Crisis Starting? - 21st July 19
US House Prices Trend Forecast 2019 to 2021 - 20th July 19
MICROSOFT Cortana, Azure AI Platform Machine Intelligence Stock Investing Video - 20th July 19
Africa Rising – Population Explosion, Geopolitical and Economic Consquences - 20th July 19
Gold Mining Stocks Q2’19 Results Analysis - 20th July 19
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

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