Join NexChange - the professional
network for the financial services
industry - and receive a free one-
year subscription to Forbes
Hedge funds are dumping gold at a record pace
With the Fed practically trapped into producing a December rate hike; investors around the globe are starting to flee precious metals at a rapid pace – and hedge funds seem to be among the biggest sellers, writes FINalternatives:
“Hedge fund managers sold gold contracts during the week ended November 4 by the most since Bank of America Merrill Lynch began tracking their movements in 2006, according to the last edition of the bank’s Hedge Fund Monitor.”
Long positions in gold have apparently been sold off, while holdings in silver and palladium have been largely slashed. Short positions on copper meanwhile have been added to, a move that has not done well for the already-battered copper ETFs.
Still though, the report does add that gold may still bounce back, but with one hulking caveat:
“Gold may rally tactically, but remains vulnerable on sizable longs by large speculators, wrote BofAML.”
I wonder how Peter Schiff feels about all this.
Photo: Giorgio Monteforti