Speculative accounts are dumping gold and loading up on copper

[victorycountry]

How do we know that they are speculative and not based on legitimate supply and demand? If there was a genuine belief in the price of gold going down, wouldn't there be an equal number of PUT options on gold? In other words, the money spent on going long would now be spent going short.

Or is there evidence that more contracts are sold going LONG than SHORT?

But...I do agree that gold will be going down in the next 90 days, assuming nothing tragic and unforeseen happens.

FYI - Speculative positions are colored in Yellow.
Since the election, Speculators dominant net positions have been long which is consistent with the view - buy the election and sell the inauguration.
However, it has been declining over time.

In contrast, Hedgers net position has been short. Give the rise in gold price, they have been on the wrong side. Note that hedgers are commercial traders - they do to minimise price risk rather than to make money through trading.

Looking at the gold futures quotes, the market is 'passively' predicting that gold price will continuously appreciate.

 

[comagnum]

In market lore, copper is dubbed the metal with a Phd in economics due its reputed ability to portend the coming of recessions and expansions. Besides watching the dollar, 10 year, $SOX copper is the one commodity I keep a close eye on.

 

[ThunderThor]

I have never thought about this before, but I wonder if the consumption of metals is seasonal and the demand increases in the Spring and Summer....or if the demand is basically constant through the year.

Amanda van Dyke: Mining Analyst

 

[DallasCowboysFan]

Amanda van Dyke: Mining Analyst

That is a good resource. She knows her job well......and she is easy on the eyes too.

Too summarize the video...


Gold is used in jewelry

Gold will never see $300 again, but 10,000 is possible.

50 percent of silver has industrial uses.

Silver is not rare

17X more silver available than gold

50, 60 , 70 ratio of gold price to silver

Statistically the 1Q is the best Q for gold prices……………..

Copper prices based on consumption: supply and demand

Copper is an indicator of the economy…………..

Platinum is used in caltalytic converters…….also jewelry and coins investment
supply constrained- hardest to mine. Only a few countries mine it. Russia, Zimbabwe South Africa are the largest producers. Unstable, it’s rarity drives its price.

 

[dealmaker]

2016 Mines & Money Presentation: Get It. Got It? Good.

 

[Overnight]

I learned everything I needed to know about copper from Johnny Carson. When copper is copped in a caper, of course it will go up in price!

 

[dealmaker]

John Authers ‏@johnauthers 9h9 hours ago




Looks like reflation is back on. Copper at its highest in about 20 months.

 

[Cuddles]

I am loading up as well. Copper is going to skyrocket. I settled in physical and took delivery of of LBMA Good Delivery bars. The rest are taking up space in the Public storage rental warehouse.

I never quite understood keeping physical assets, any advantage over just trading?

 

[DallasCowboysFan]

I never quite understood keeping physical assets, any advantage over just trading?

It's a source of security. Shares in a gold mining company might be worth 1k one day and worthless he next if the mine collapses, the govt seizes the mine or there is an embargo against the nation.

But if you own the gold, and it is stored in your closet; it might not be pay interest but it will still be worth 1k.

People keep gold and silver bullion/coins for personal security. Families in Europe and India used to keep 'a little gold' on hand in the event of a crisis ( memories of WW1, Hyperinflation, WW2).

It's a good idea to keep some on hand. If you want to buy silver, consider buying Silver Morgan Dollars or Peace Dollars. You might even make some money on their numismatic value as well as the silver.

 

[Cuddles]

It's a source of security. Shares in a gold mining company might be worth 1k one day and worthless he next if the mine collapses, the govt seizes the mine or there is an embargo against the nation.

But if you own the gold, and it is stored in your closet; it might not be pay interest but it will still be worth 1k.

People keep gold and silver bullion/coins for personal security. Families in Europe and India used to keep 'a little gold' on hand in the event of a crisis ( memories of WW1, Hyperinflation, WW2).

It's a good idea to keep some on hand. If you want to buy silver, consider buying Silver Morgan Dollars or Peace Dollars. You might even make some money on their numismatic value as well as the silver.

I get that for precious stones and metals. I just never saw the need to execute a contract for pork bellies and take delivery of the meat.