Gold Bubble? What Gold Bubble? There is NO gold buble

[LegendKiller]

-EDIT- Yes, I see that bubble is missing a b.

IT'S ALL INFLATION AND A WORTHLESS DOLLAR!

Ohh, wait, you mean it is a bubble? You mean that somebody can lever up 85:1 and become 10% of the US futures market when he's only a $10mm hedge fund? You mean his liquidation of contracts can be a huge % of all of the gold contracts? You mean that ONE guy, a puny hedge fund, can contract for South Africa's annual gold production?

Nope, no bubble here.

http://online.wsj.com/article/SB100...2014.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsTop

http://dealbreaker.com/

Thanks to the nature of futures trading, Daniel Shak’s $10 million hedge fund held gold contracts valued at more than $850 million, more than 10% of the main U.S. futures market, and the equivalent of South Africa’s annual gold production. But as gold prices started falling this year, the trade, which was a combination of being long and short gold contracts—bets that prices will both rise and fall—started going bad. Monday, he liquidated his position, and is returning money to clients. As a result, the number of gold contracts on CME Group Inc.’s Comex division plunged more than 81,000, to about 500,000, the biggest single reduction ever. While his trade didn’t account for all of the contracts, an average daily move is about 3,000 to 5,000 contracts.

 

[Svnla]

I know for a fact that the gold value in Asia black markets are down in the last few days.

 

[Scotteq]

Thanks to the nature of futures trading, Daniel Shak’s $10 million hedge fund held gold contracts valued at more than $850 million, more than 10% of the main U.S. futures market, and the equivalent of South Africa’s annual gold production. But as gold prices started falling this year, the trade, which was a combination of being long and short gold contracts—bets that prices will both rise and fall—started going bad. Monday, he liquidated his position, and is returning money to clients. As a result, the number of gold contracts on CME Group Inc.’s Comex division plunged more than 81,000, to about 500,000, the biggest single reduction ever. While his trade didn’t account for all of the contracts, an average daily move is about 3,000 to 5,000 contracts.

<Channels Jane's Addiction>


....Cash in now, Honey!!!!

 

[sandorski]

Someone is gonna be the next Man with the Golden Voice. Except without the voice and fairie tale ending.

 

[Delita]

Saw that article in the journal today. Pretty ridiculous.

Also Dealbreaker is probably one of my favorite websites.

 

[Phokus]

WSJ comments:

Buy and hold physical. It is the only way to go. The price really isn't that important. Fiat dollars will go to zero eventually. "All paper currencies eventually revert to their intrinsic value, zero." - Voltaire

As it has been throughout recorded history, so it will be again.

Libertarians are retarded and never learn.