Posted by: jhamon | September 21, 2009

Of Gold, MysteryHedgie Says: Lighten Up!

Of gold, MysteryHedgie says: Lighten up!

Gold…connecting the dots between the largest spec long futures position in history (see chart below) to Barrick’s hedge unwind and the inflation signalling discomfort of $1000 spot gold and plunging realized market volatility, reports this morning that the IMF will begin, carefully, to sell a portion of its vast holdings presently equal to around 10% of annual demand.  The Chinese are interested, but price sensitive (read:lower) buyers.

We continue to advocate profit taking in this overowned space as inflation stays tame and two-way price risk returns to the US$ following Blackrock’s Fink’s supportive comments late last week.

Lighten Up!

Lighten Up!


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