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Who Just Bought Half A Billion Dollars Of Gold Futures?
Presented with little comment aside to note the surge in gold since Yellen gave markets the all-clear yesterday. It seems someone decided the open this morning was an opportune time to take on half a billion dollars of gold exposure...
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Mascot huh? I'll take that job...:-) And feel free to ridicule...those insults bounce off like so many Lilliputian arrows.
But you know, I think that the pro and anti-gold folks will always be at odds, they are seeing things from totally different perspectives. And to each, the perspective of the other seems senseless because it is so different from their own.
There is the 'trader' type, who gets freaked out by the price behavior of gold. It isn't easy to day-trade an asset that seems to be downward-driven and unloved. For traders, the likelihood that gold prices will remain low for awhile means that gold is on the "Pay No Mind" list, for now anyway. And a trader simply cannot understand what a buyer of gold is thinking...it seems like batty behavior to him. To this guy, gold is a loser, and gold buyers are nuts. One's 'money' should always be actively "working"...Gold just lays in a hammock all day while it's waiting to be needed.
The pro-gold folks, on the other hand, simply do not consider the day-to-day fluctuations to be important. Gold, to them, is not a vehicle for dollar-profits, it is an insurance policy AGAINST dollars, period! If anything, continued downward pressure on prices is a welcomed opportunity to add to holdings...to 'upgrade' that insurance policy, not for what it's worth TODAY, but to increase the payout if and when that policy is needed in the future.
These folks aren't so much concerned with making their money work for profits, they'd be content if it allowed them to preserve their wealth. So the fact that it is not really 'tradeable' these days isn't even on their radar. These folks, like me, point to history as the reason we feel this way. And that historical record is crystal-clear, there can be NO DOUBT what it says about gold...
Of course, I guess it IS possible that this time it's different, and that we will be wrong. A whole generation of 'gold-bugs' holed-up in rotting trailers with coffee cans full of old coins hidden in the walls, waiting like Jehovah's Witnesses for an Armageddon that never arrives.
But, maybe not, and we will be right. And the gold we hoarded will give us some ability to engage in commerce when what we see as an inevitable currency crisis strikes, and people start rejecting the official currency, or it becomes increasingly worthless. The fact that gold, in whatever form, has ALWAYS been seen as a valued medium of exchange would logically point to it continuing to be so in the future. The stretch would be in betting it would do something it has NEVER done before.
I don't know about other gold-bugs, but I'm not expecting some kind of Thunderdome scenario where I'll be bartering my coins and jewelry for cabbages and gunpowder. To be honest, if things DID get that bad the only metal that might save your ass will be lead anyway.
What I am planning for is a slow, steady erosion in the purchasing power of paper as it is played with by our financial overlords. This will lead to a situation where we will need some new kind of currency in order to restore faith in the system, and we will have to turn in our FRN's for the new stuff. They will have to 'back' that new currency with something, and there's a very good chance that it will be some kind of PM, as we will have to coordinate with other global economies who will collapse along with us and THEY will be using gold...oh yes they will.
But if it is only the shorter-term profits that interest you, consider this. Throughout history people have panic-bought/hoarded gold and silver in uncertain economic times. It's psychological, and it happens every time. So, if that's how it plays out this time, then even a blind man can see the huge price-spike on the horizon. Demand drives the price up, and any perceived shortage ramps up the desperation to buy, driving the price higher still.
In the case of silver, there is actual shortage ahead, as it is consumed in manufacturing and tech, unlike gold, which is merely reformed over the years. The lower prices have meant many of the mines have been idled, so the available silver on the market is declining as time goes by. What do you think is going to happen to that price when the market starts to perceive a looming shortage and companies start scrambling for smaller amounts?
If for that reason only, I don't see how anyone can bet against PM's as a hedge.
Sorry this got so long, but I am a true-believin' gold-bug, and proud of it!
Messi and Mardonna (and others argentins rich maybe ?)
I'm with ya Bemused. I see the value.
Personally I wish they'd take it down to $800, got lots of paper-for-Gold swapping to do at that level. Andif they take it down even more then I've got lots more paper-for-Gold swapping to do.
For anyone that's got Gold, let them win a few battles (shorter term lower prices), focus instead on winning the war (FAR higher prices over the coming decades, maybe a lot sooner....)
And then... I see this one...
You sir, are the new winner. Wow.
Maybe The Europeans woke up and thought that they had bought enough crappy U.S. paper and will start to buy Gold like the Russians and Chinese.Yellen will never admit that the Fed is insolvent on a mark to market basis.They're mostly holding mortgage backed junk from U.S. Banks.Crap like run down shit in Detroit.
Fed is insolvent? Do they have to be solvent? They can hold everything to maturity and just take it off the books. Insolvent? Lol. Its the Fed. Mark to market? Lol. Did you get high and spend 4 hours on Investopedia last night and now you're spewing forth your bounty of knowledge. LOL. Side note... Detroit real estate... You guys buy gold and one reason is because China is "backing up the truck" right? So does that mean you should be buying Detroit real estate too?? (see article)
http://www.forbes.com/sites/gordonchang/2013/12/08/chinas-newest-city-we-call-it-detroit/
So, according to the Chinese, Detroit real estate is the place to be...
The Chinese do have the talent to be farsighted. Detroit is on sale....big time. Chinese move in and...wait for it....build car manufacturing plants. You heard it from me first.
Smaug did it.
I'm guessing it wasn't the Belgians who bought it.......
The real question isn't "who" bought it (also Silver). But "will" these deep pocketed non-Belgians stand for delivery......
Maybe these non-Belgians are moving the chess match to "check".......
Maybe it rhymes with Hunt. Oh, wait, no, maybe it is just the revenge of the Hunts.
My guess on who is buying gold futures..........A guy named Vladimir or his agent.
The real reason for the rise over the last few days is probably short covering.
The Gold market players (not the manipulators) are the past masters at getting everyone in, then running them out of town, then forcing them back in again.
The move is now working in reverse, late May got plenty of shorts in going into the end of the month, this current move is getting them all out - don't be surprised if they now take it lower over the next few weeks.
I took out insurance on the economy, been buying physical silver and gold the past few months.
Suplemented with purchase of paper NG which I can sell quicker to take advantage of any upswing in price to offset a possible down draft in price of the physical, rinse and repeat the next few months.
Looks like USD is again taking it in the ass again, wonder if it can break below 80?.
Since we're all guessing-
There was a story about the 'gating' of the bond market the other day + we've pissed off the rooskies+ the large specs went all crazy short gold the last couple months.
So it might be rooskies buying, hedge funds covering and bond market prisoners trying to get some.
OK, OK, OK. It was me.
Shit. Someone was reading my post from yesterday and did it.
http://www.zerohedge.com/comment/reply/489823/4871100
I meant to BUY PHYS you putz! PM me, k?
BUY ME to the moon......
Gold, such an emotional topic; because history is such an emotional topic.
Think on this, if you are a dishonest man (lier, cheater and stealer) and everyone knows it how do you gain credibility in trade, quickly? You dress yourself in trust you haven't and can't earn for yourself. Thats the value of gold, when push comes to shove. This is one of the reasons it was sought out by kings, popes, bankers and villans of all shapes and sizes.
What price do you place on credibility? For that is the price of gold.
LOTS & LOTS of PM short covering going on today - it is spooking the retail shorts big time! The key to the PM markets right now, especially with the ME instability is :"NO COUNTER PARTY" risk.
JM$.02
Sell-off's don't kill rallies, bubbles do.
Still looking to buy that land where we can grow more food. This city lot is ok for 12 hens and the back yard grow.
Gold/Silver is not productive real estate but where else can I store some value? Yeah, we all have plenty of shitgums, right?