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Gold Is "Undervalued" For 1st Time In 6 Years, BofAML Says
With hedge funds net short for the first time ever, and Commercial Hedgers are holding the lowest net short position in gold futures since the launch of the gold bull market in 2001, we thought it interesting that - for the first time since 2009, BofAML's fund managers' survey finds Gold is "undervalued."
For the first time since records began, hedge funds are net short gold futures, according to CFTC data...
This is what happened the last time gold saw a 'low' net long position...
And as of this week, Commercial Hedgers are holding the lowest net short position in gold futures since the launch of the gold bull market in 2001.
And now... BofAML fund manager survey shows Gold is "undervalued" for the first time since 2009...
So in aummary - Fast Money short, Smart Money least hedged, Gold "undervalued"
Source: Bloomberg and BofAML
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interestingly enough..
Credit Suisse: Macro Hedge Funds Net Short US EquitiesI dont think it's Gold time just yet.
When the Fed tightens USD is going to fly because the whole world is going to park its lazy ass in UST whilst EM blows out.
Monetary tightening is the ONLY WAY the Fed can stimulate demand for UST and reduce their epic balance sheet.
The Fed is going to trigger a credit crunch in emerging markets.
But...But...But Martin Armstrong says that these charts and prognostications are....err... oh never mind.
Drunkinmiller buys 300 million of GLD, HSBC buys over 4 tons of physical and changes the call to long, Goldman buys a similar amount but keeps the short call. Something is up in the PM complex that's for sure.
Something is not right about gold not moving, and silver giving up over 3%, even more than copper today.
Sounds like there is a lot of gold for sale.
$220 trillion of outstanding global debt, central banks creating trillions from nothing.
Total above-ground gold stock worth $6.5 trillion.
Gold is undervalued for first time just now.
-
hint: price is irrelevant
Your take is total malarkey.
Gold rises when interest rates rise. Especially when the front runners in the bond trade front run out the same way they front ran the fed in.
So....we read, that there's a 100 to 1 (rounding) ratio between the sold gold contracts, and actual physical gold.
now, we read...that there is a large short position in gold, which unless it's a mine, or someone holding physical....is really another invented position in gold being sold to the third party with no physical to back it up.
....whatever. lol. just keeping selling that virtual gold.
"When the Fed tightens "
If you like fairy tales, please, have you considered reading The Three Little Pigs or Little Red Riding Hood?
So. As I am not a central bank and have no unlimited printing press for paying my bills?
Say I have to buy food, pay a mortgage, buy a car? Give me a printing press like you do Jamie baby or the corporations that are now "PEOPLE:.
But no.
We just collapse.
Then, the added interest expense will bloat the total US debt outstanding. This will, ultimately, drive up the value of gold, the US debt anti-dote.
BofA using comex rigged prices. May as well use lemonade stand prices to prove no inflation.
Once the measuring stick (corrupt ETF & futures pricing) is taken away from those that set price according to whim and not market dynamics, then we'll see how the 6 year time-frame looks. 'Till then, STFU because everyone knows that a fiat based economy, priced in banker-controlled notes, running on credit fumes, is a fraud.
I use store brand WalMart mac n cheese. There is no inflation until that price goes up.
My chickens eat bugs and lay eggs. There's no inflation until the bugs are radioactive.
That should be good for a $30 smash tomorrow
Yep, the kiss of death from a made bank.
yup....bend over and spread um.....but I have a nice physical buy if they do......SILVER BITCHES!!!
Upvote x 1000.
and yet the selling will continue
Undervalued eh?
Paper or Physical?
Why do you ask...is there a difference?
Sincerly, America
When we left the White House we were broke.
I feel your pain.
Very Correct statement from B of A for the first time .
Seems the early 'big money guys' are beginning to trickle back in to gold and silver
undervalued?
what kind of lame ass niggardly analysis is that shit - Sherlock?
yore raycessists
"Gold Is "Undervalued" For 1st Time In 6 Years, BofAML Says"
the only thing worse for gold would have been gartman saying it's a buy
He did, last week.
oh shit
My eldest sons first words, in a restaurant crowded with German tourists after a waiter dropped
a tray of glasses.Deathly quiet followed by deathly looks.
Don't mention the war.
German tourist: Please stop talking about the war!
Fawlty: Well, you started it.
GT: We did not!
F: Yes you did. You invaded Poland.
Don't fire until you see the whites of their eyes.
Very soon hopefully they'll be forced selling to cover margin calls then its time to buy!
If that happens their eyes will be red, not white. For some, their eyes may close without a shot being fired.
It's hard to shoot them when they're jumping from buildings.
*Pushed. There, I fixed that for me
In my ever-present gross sense of pessimism, I tend to look for the ulterior motive from any banking source. The metals markets are rigged to guarantee that the big players always buy low and sell high. Always. So, for that to work everyone else has to move counter to them, or at least a very large majority of the populace. Therefore, the only thing I know to do is to buy exactly opposite "recommendations", or in the case of silver, buy big time when it gets hammered, like today, since I know that market is heavily manipulated. What else can I do?
-Argenta
The big players by low and sell high - paper.
Papapapapapapapapapapappaapaper. Not gold, not silver, just paper.
Gold is Undervalued? Try Alaska Red Salmon-!!
We commercial Alaska fishermen received 50 CENTS LB for a food commodity selling for @ $10-15 in stores.
Fuckers.
that's pretty fucking disgusting..hope you guys can cover costs
Indeed, it was on sale here in north Florida for 7.50 a pound . . . we ate it for dinner the entire week, it was fabulous, made a Miso-Ginger sauce with it . . .yum. Thanks for catching it . . .
Now was that necessary :)
That's robbery. The absurd amount that you're being paid is ridiculous.
Has Fukushima put a snag into your business? Do you guys know if the fish you're pulling out of the water there has been compromised? Any dips in population, other freakiness?
America is paying $22/barrel for Alberta crude. We, here, in Edmonton, are paying almost $5.00/gallon at the pump. That's $CDN of course, which are suddenly not worth very much; fortunatly we haven't been bombed for it yet.
Whenever I see the acronym BofAML it looks like Bank of Fuck My Life...
"Bank O'Fuck My Life"
Ha. As we used to say about Wachovia before being borged into WF: Walk all ovaya.
They will continue bringing it down to setup buy positions before or as interest rates start rising.
BTW, why HASN'T GASOLINE FALLEN FURTHER?
BLACK GOLD per barrel down from @ $120 barrel to @ $40, so gas should sell for @ $1 to 1.50.
Here in Alaska the price fell maybe a dime to $3.46
Yep - same in all parts of the world - CME gas is below 150 and retail hasn't moved.
While you're at it, take a look at beef. Still high. WTF??
BIG FAT FUCKING GUVAMINT and central banks (along with corps) fucking with ALL markets to hide deflation.
CRB index below March 2009 lows - that's deflation on steroids!!!!
Lampasas TX, regular is $2.11
Supply of retail gas is limited by refinery output capacity more so than crude price. We've been systematicaly reducing that capacity for decades.
To save the planet, of course.
Oil companies fix the price, they own the refineries. they'll tell you its the expensive summer blend with butane removed- complete bullshit as it costs about 15c a gal to remove butane.
The big beneficiaries would be airlines- but they got that market price fixed too.
Expect no drop until after Labor Day. They'll hold it as high as they can for the maximum gouge.
Then they pull shenanigans. SSDY
http://abcnews.go.com/Business/wireStory/great-lakes-gas-prices-jump-par...
No one that buys gold will listen to TBTF Banks.
They lost their Credibility long, long ago.
So now what BofA wants to attract market share of people that potentially would buy gold?
Ain't gonna happen. It's like Larry Kudlow or Jim Cramer or Janet Yellen trying to win over old viewers.
What the fuck is a "BofAML's fund managers' survey?"
Verbatim, is this the result of managers' sentiments? In other words, did BoA ask 20 of its managers if gold was undervalued and 11 said yes while 9 said no? Please tell me there is something more quantitative, with statistical relevance, than merely a quiz of managers from a too big to fail bank.
And what the managers are really sayings is that the USD is over valued relative to Au. Right? I mean, gold is gold. Its not created out of thin air like all fiat currencies. Labor and capital are used to dig it up. I recognize that gold may be heavily manipulated via paper futures, but from a idealist standpoint, the value of physical gold is based on the consensus of everyone worldwide.... not just a few BoA managers.
And therein lies the concern that each government/CB has with gold. A chinese doctor, american farmer and russian mechanic can together reach a consensus on the real valuation of 1 oz gold, independent of each nation they live. Gold cuts out the middle man..... the state.
Cheapest prices for gold
I'm not buying from any feckin Irishman.
Do you take UFC? Unicorn Fart Coin? It's all the rage
Not clicking on your spam link, fuckwad.
Commodities are in a downward spiral, and some jerk off is touting Gold.
I got news. If it ever gets so bad that you need gold to buy stuff, you better have an army to protect you and your gold.
Do you need an army to have $130 in your wallet? That's what a 1/10 oz AGE will buy in dollars.
If it ever gets so bad that you need gold to buy stuff, the government will confiscate all the gold, and also make it illegal to trade with gold. Read the history books. However, as a store of value it works pretty good. I expect it will go close to $3,000/oz during the next round.
Suddenly boating accidents, hundreds and thousands of boating accidents.
I just plan to use the metal to move my money from this shitshow to whatever system follows it.
And kill Werewolves. Not Swearwolves.
According to Bernanke, Gold is tradition
Ron Paul asks Ben Bernanke - Is Gold Money? July 13, 2011 ...
I still think the gold is moving east..and faster now that the Yuan is being devalued....as EM crater..they will rush to gold...
Right. As China's economy implodes, they will move more gold from hiding in their banks to the PBoC. A big move along the way will probably move the gold market. BoA may smell this move coming, by the end of the year(or quarter?).
'Undervalued' now, is it...? As opposed to when --- last week...?
I smell F-E-A-R.
Now we need Gartman to get bearish, then I'll back up the truck . . .
Gold acted very differently today against the others. Showed good strength. Felt different to me.
My wife inherited ~$40k in gold coins in January 2010. She wanted to sell them but all knowing I convinced her to keep it. She reminds me if we sold it and invested in growth funds or whatever, we'd actually be able to use it. As it stands now, I have to agree with the gold naysayers. Please explain why I am wrong....again.
Now is absolutely the right time to jump info the DOW, and gold is going to $39.95, and so you're right to sell the gold.
And I'll buy it all from you now for $50/ounce so that you won't have to take a bath at $39.95.
Whoever thumbed down, explain why you don't like what I posted.
Gold was right at fair value back then. It then went on to be over valued at $1900/oz. Now, it's undervalued with FV=around $1650. ZH says more, http://www.zerohedge.com/news/2015-07-29/what-fair-value-gold.
I do my calculation by dividing today's US debt(supposedly $18.25T) by 1971's debt of $390 Billion. Then multiply by $35/oz. It's more conservative than the above article. Gold is currently on sale but that doesn't mean it can't get cheaper.
Gold first broke below FV in April 2013, shortly after this;
http://www.reuters.com/article/2013/04/10/us-usa-obama-banks-idUSBRE9391...
Depends on your net worth. Gold is an insurance policy against central bank stupidity which we have a lot of right now. I hear a lot of recommendations that your gold insurance policy should be 10% of net worth. If you agree with me that central banks are complete idiots right now then make it more than 10%. Your call. Or just ignore me. That's OK too.
Commercial HEDGERS, my asshole... more accurate is "NAKED SHORT SELLER MARKET MANIPULATING CROOKS".
One of the best indicators of how low the value or worth of gold is:
We live in the era of the combined insanity of politicians worldwide creating debt and central-bankers buying the government debt, creating money and crushing interest rates on a scale that is so immense as to be absurd, if it were not true.
A broad range of assets have been overbought to correspondingly high levels of absurdity.
BUT
gold and silver are FALLING in price - the money masters worldwide are NOT using the rivers of created money and zero-interest credit to buy gold.
Nuf said.
Correct. The money masters are using their fiat to naked short gold and silver. Hence the low price. The only question really is will they fail or not? It's global this time but in the past when it was not global they have always failed. Is it different this time?
The way I see it is the Fed is trying to use cheap commodities to kickstart the recovery.(if there ever is one again)Any interest rate hike will demolish emerging markets.If that doesn't work they'll do it again and move on to another scam.