Last week, we discussed the fallacy that silver was somehow in a “speculative bubble” and doomed to collapse insilver price. But you’ve likely heard the same nonsense regarding gold, so this week, let’s take some time to dispel that notion too.
Let’s start with last week’s post regarding COMEX silver. If you missed it, here is the link…and it’s a shame if you did miss it because, as I type, the price of COMEX silver is about $10 higher than where it was when I wrotethis articlelast Monday, the 16th.
TRUTH LIVES on athttps://sgtreport.tv/
This week, let’s focus on COMEX gold, and though price is already up about $130 on Monday the 23rd, I think you’ll see that it still has room to run.
The focus of this post is the Speculator positioning on COMEX—both the “Large Speculator” category and the “Managed Money” sub-category of the disaggregated Commitment of Traders report. Below is the data that was surveyed last Tuesday, the 17th, and reported on Friday, the 20th.
Again, the mainstream financial media will tell you that the gold price is in a “speculative bubble” and “blowoff” phase. But who are these “speculators”? As you can see above, they are primarily the Managed Money funds. Who/what are those funds? This from the CFTC website:
OK, now let’s do some math. Scroll back up to that CoT data and note the following:
• Large Speculators GROSS long 213,432 COMEX gold contracts and GROSS short 53,517. This leaves them with a cumulative position ofNET long 159,915 contracts.
• The Managed Money sub-category was GROSS long 123,011 COMEX gold contracts and GROSS short 27,118. This leaves them with a cumulative position ofNET long 95,893.
If you just stop there, maybe that sounds like a lot. When you see 95,893 contracts, which represents 9,589,300 ounces of “gold”, that sure seems like a lot! But is it a lot in context and from a historical perspective? Is it a “bubble” or is it something else?
Source: SGT Report
