Hedge funds slash bullish wagers on gold over Trump election win
Hedge funds and other large speculators boosted net-long positions by 11% to 197,362 as of Nov. 12, the lowest in 14 weeks.
Does gold’s precipitous $300 drop in September represent a fundamental market shift? It is hard to argue with this statement: “Global stock markets are volatile, central banks have not regained credibility, inflation is still a concern, and trust in the markets has not been restored. Yet gold continues to fall… Gold has lost its shine.”
The man behind those words, the trading floor executive-turned-lecturer (University of Boston School of Management) Mark Williams says bullion is now headed to $700 an ounce and will return to being “dead money” as it was in the 20 years after the 1980 peak:
“If gold is falling in a weak economy, and investors are willing to own US dollars again, imagine how it will perform when the global economy eventually moves from chaos to prosperity, and more traditional investments – those that produce products, dividends and jobs – come back in fashion.”
Read more about at Williams’s predictions at ThisisMoneyUK:
Image by Christophe Michot / Shutterstock.com
9 Comments
Wolfkeller
Mark Williams seems to be crazy. Gold will come down somewhen. But not in the near future.
ddearborn
Hmmm
Just to refresh everyone’s memory in 1980 The US debt was how much? The EU had how much debt? In relative terms the US the Europe has NO debt. Today both the dollar and the Euro are technically worthless. The only thing propping them up is the power the the media.
And given that in inflation adjusted terms (real not fantasy FED inflation numbers) right now gold should be somewhere around $3500-$4000 an ounce. And gold should be the defacto world currency. It is not because it is impossible for the likes of the FED and the world bank to significantly manipulate a gold backed currency. In short they can’t cheat and rip off the working class and manipulate governments that maintain stable currencys.
So this article and Mr. Williams are totally full of it. In short they are lying.
Tmrusa
the trading floor executive-turned-lecturer (University of Boston School of Management) Just Proves The Point: Those than DO and Those that CANNOT TEACH! If he were the Genius that he and Some might Portray him AS, HE would be BRING IN the BIG BUCKS. Teaching is a safe harbor! Ships in the Harbor are SAFE but NOT what Ships were Built FOR!
Lummax
the previous question still stands, what is the tangible value of gold? Does it have its place in a fiat currency system? Does gold backed currencies prevent governments from ‘quantitative easing’ practices? Should we be expending other resources in obtaining gold?
Generally people who hold lots of gold get upset by these questions. The reality is, only ~25% produced is used in tangible products. The rest is for high maintenance women and bank vaults. Hardly a commodity worth shelling out for. I think more and more people will be asking these questions.
Tom Pauling
Yes, its about the fundamentals.
These commentators really are clueless.
They just write this crap whilst floating in outerspace.
The US will be in a very depressed state for the next 5-7 years.
What we have seen over the last three years is recognition by right thinking people that paper can not be relied on.
Its the big lie that the US spread in the early 70’s.
Everyone klnows it but these stupid commentators.
But just think about it for one minute.
When the US comes out of recession in about 5-7 years do you really think that nation will be the predominant economic power.
Nope, think again.
Wags
Gold naysayers always ask, “what’s the tangible value of gold”? I always ask, “what’s the tangible value of paper -or worse yet- invisible numbers floating out in the etherspere-“? At least gold has never been worthless, and it sure feels good and is pretty to look at.
Jimmysidewinder69
those who can do and those who cant …TEACH.
jamesont
Gold has definietly not lost its “safe haven” status, and will never lose it as long as there is the current financial turmoil in the world and as long as basic problems have not been solved. People will always want something tangible as a measure of wealth and as a measure of money. Gold has always been a successful barometer of how sick the economy is, and world economies are very sick indeed.
Ed233
It’s one thing to make a case for a proposition. But to base one’s case solely upon an executive-turned-lecturer to come to the conclusion that “gold has lost its shine” tells me that the writer hasn’t taken the time to investigate into the reasons why gold has dropped in value during the past recent weeks. “Shame on you!!!!!!!!!!!” I will stick, “stick” with gold and precious metals right now and until I see that the western world hasn’t gone to hell in a hand basket which is where it is presently headed; thank you very much. LOL Looking after your money.