Speculative accounts are dumping gold and loading up on copper

D

dealmaker

Liz Ann Sonders Verified account ‏@LizAnnSonders
Speculative accounts are dumping gold and loading up on copper

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Anyone with basic charting skills can see that "speculative accounts" are down on gold and copper is up. But what does that tell us about the FUTURE movement of those two?

Any insights?
 
Market Data

Index Last Chg
Gold
1,158.30 USD
3:39pm EST
-5.20
Exp: Dec2016
Copper
2.59 USD
1:59pm EST
-0.02
Exp: Dec2016
Crude Oil
52.26 USD
7:29pm EST
-0.72
Exp: Dec2016

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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.
 
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.
 

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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.
 
DallasCowboysFan said:
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.
More...

This could be one explanation, physical gold is mostly traded by central banks and since they are long term holders and they don't care about fluctuations...
 
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