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Information forwarded to us from listeners. This one is from Larry.

Big Al
February 23, 2014

I have decided to post some of the articles I receive from listeners. I realize that some of you may have already seen these but for those who have not here they are.

Would you like me to continue doing this?

This one is from Larry:

Gold price: Hedge funds add 30% to bullish bets

Frik Els | February 21, 2014
Gold price: Hedge funds add 30% to bullish bets Jockeying for positions in gold

The gold price ended Friday with a third week in a row of gains after bullish positions held by large investors soared again.

By the close of regular trade on the Comex division of the New York Mercantile Exchange, gold futures for April delivery – the most active contract – hit $1,323.60 an ounce, up $6.70 from Thursday’s close.

There appears to be a definite shift in sentiment this year after 2013’s dismal performance with the smart money only now catching up with gold’s almost 10% rise this year.

Long positions – bets that the price will go up – held by so-called managed money increased by 8% to 140,840 lots in the week to February 18 according to Commodity Futures Trading Commission data released after the close of business on Friday.

At the same time short positions were cut by 10,603 to just under 50,000, which translates on a net basis hedge funds holding 31% more bullish positions: net longs of 90,942 lots or 9.1 million ounces.

Net longs jumped 17% in the week to February 11, CFTC data showed. Net longs fell to a paltry 26,700 lots in early December when shorts held by large investors peaked at more than 80,000 lots.

That was the highest number of short positions since 2007, back when gold changed hands for $700 an ounce.

Discussion
48 Comments
    Feb 23, 2014 23:38 AM

    Exactly, thats why I’m long. This market reminds me of coming off that historic bottom
    In 11/2000 with a almost nonstop rally onto June 2001.

    STAYING LONG TOO

      STAYING LONG TO^O

        Feb 23, 2014 23:11 PM

        May the gold bulls prosper

        Rick Rule ….he’s not a salesman….like me……HA

        Anyway he said few days ago…..GOLD LOOKS EXPLOSIVE .silver even better.

        Rick does not BS…..that I know.

          Feb 23, 2014 23:41 PM

          I will invite him on The Show this week.

            Feb 23, 2014 23:52 PM

            Looking forward to it BIG BIG AL.

            RICK RULE ROCKS……RRR

            He knows his business and there is no …disinformation.

            In fact, for the last 2 years when miners where expensive
            he told everyone to stay out. Why, because of their losey
            earnings and bad management.

            This is when everyone was pumping it. I knew better but Rick
            just reinforced everything I knew. Although its easy to get taken
            in. THE EASIEST THING TO DO IS….LOSE MONEY.

            We all have big challenges ahead.

      Feb 23, 2014 23:40 PM

      You think you ate staying too long?

      Feb 23, 2014 23:50 PM

      AND DONT FORGET……RE: F.D.I.C.

      Take off your blinders. F.D.I.C. only has a fraction of the funds to
      insure depositers accounts.

      CHINA will never sell their gold.

      In fact, anyone who sells their gold or who does not own gold…

      YOU HAVE TO BE OUT OF YOUR MIND….this includes silver is a must have

      My bank right now is CEF. All my immediate liquid funds for short
      term needs stays there. I can sell shares and pay bills very easy.

      You can create your own bank. Believe me….the big devaluation
      is coming. IMVHO Its only going to get much worse and your friends
      in the government and FDIC…..here’s what your going to hear…..

      SORRY !!!!!!!!! Think about it. Thats what everyone tells you when they make
      a mistake and you suffer the consequences. SOUND FAMILIAR..sure it does.

    b
    Feb 23, 2014 23:09 PM

    Some men are longer than others.

      Feb 23, 2014 23:17 PM

      Yes and the ones who are shorter than most…..

      DRIVE CORVETTES. …..

      Knew this one guy that had 2 of them……HA

      His nickname was…SHORTY….and guess what ?

      use yor imagination. ..

        Feb 23, 2014 23:43 PM

        He drove s short Corvette?

        Feb 24, 2014 24:47 AM

        It’s a paradox HH. The older I get I find I get longer!!

          Feb 24, 2014 24:48 AM

          That’s why I don’t need to pose – drive a Golf (sorry ‘Rabbit as Al calls them)!

            Feb 24, 2014 24:53 AM

            They say Andrew VW can go 200k miles…still keep going.

    Feb 23, 2014 23:20 PM

    I’m long too, but have small position of puts on the GLD for some downside protection . Who really knows where this market is headed and having a few shorts to help the mind in case of unexpected free falls is smart.

    Feb 23, 2014 23:32 PM

    Gary….gotta be comfortable. Sleep is very important.

    My new hedge is shorting stocks in the spoos on nice rallies.

    Averaging in. Over weeks. Maybe months.

    using..HDGE….I feel is the best fund. Tax advantages too.

      Feb 23, 2014 23:32 PM

      Just on nice rallies though. Shorting

    Feb 23, 2014 23:18 PM

    I think when we get past this extra cold winter and things settle out a little the Dow and Nasdaq will have one more really big run and then I will look to short and maybe with Hdge.

      Feb 23, 2014 23:32 PM

      I figure Gary….you can’t time it precisely.

      Stocks may have another 5 to 8 percent.

      If I average in on rallies over the weeks ..months,, maybe…they could start
      to roll over a lot sooner.

      So lets say on a average of 5 percent of the top my shorts are on…
      I have 40 upside over 2 years.

      I got my gold SHARES within 5 percent of the bottom average.

      MY INVESTMENT PHILOSOPHY IS WITHIN 5 PERCENT.

      ITS A WINNER EVERYTIME.

      Remember the only that picks exact bottoms and tops….

      ARE LIARS !!!!! !

        Feb 23, 2014 23:46 PM

        Or rationalize really well!

    Feb 23, 2014 23:54 PM

    Remember, stock top and bottom timers have empty wallets unless their really really good!

      CFS
      Feb 23, 2014 23:16 PM

      I know several people who do use timing to accumulate wealth,. It is not difficult, but does require attention to details to build up a total picture, which includes being able to use charts and fundamentals. No one is 100% correct, but you don’t have to be to make a living on the market…..just mostly right.

      Feb 23, 2014 23:32 PM

      Depends Gary…early birds get the…. CHOP…sometimes.

      Lots of stock bulls out there. Not too early I think.

      ALSO I WOULD NEVER BUY PUTS. BEST HEDGING ALMOST RISK FREE IS
      TO SELL CALLS AFTER NICE GOOD SIZE RALLIES AND YOU OWN… GLD
      so on a rally of healthy size the market may move sideways for a while
      or may move up not enough now collecting all that premium.

      If it goes bad…you own GLD and put them stocks to them not
      Losing anything.

      Or I would just reduce my long position if I feel uncomfortable.

      ALSO…NOTE TO THOSE OUT THERE. …not shorting stocks unless
      I post it here. Just food for thought right now.

        Feb 23, 2014 23:32 PM

        I can hardly wait.

          Feb 23, 2014 23:14 PM

          Waiting for that triple bottom. Then what….I can hear it now
          if indeed it happens ….1000 gold…then 700.

          Anyway Birdman….there is always another train. coming through
          the station.

          In fact, there are so many….I guess when it rains it pours.

          Short stock trade coming, commodities..

          LOOK AT THE OPPORTUNITIES.

          DBA 300 % long …..no problem for me.

          With I had unlimited capitol but I don’t.

            Feb 23, 2014 23:16 PM

            Typo…..Wish I had…..

            Damn these small tablets anyway

            Feb 24, 2014 24:00 AM

            Or Sugar short
            Or Gold short
            Or Silver short.
            Or Natural Gas short.

            Yeah. This week. But you go long gold since you know it all.

            Feb 24, 2014 24:23 AM

            I’ll pick door #4 NG

            No, I don’t know it all. Shorting I anyone of these NG makes the most sense.
            Its run hard.

            The other 3….I do wish you the best.

            Feb 24, 2014 24:43 AM

            Birdman….if and when you do …..post your trade that day.

            Like I’ve done. Otherwise, don’t tell me you did anything. Not gonna believe it.

            A precious metal short unless we get a big run is still something that I would
            never trade. I don’t trade just to be trading.

            I know you love stocks but I’m almost ready to start shorting all those pigs.

            Yaaaaaaa…..I can’t wait. THE DOW COW IS ……GOING DOWN….HARD…next 24 months.

            Feb 24, 2014 24:26 AM

            Twenty Four months? That’s a big window. So much for timing.

            Feb 24, 2014 24:52 AM

            Birdman….its too bad your short sighted.

            The stock market gets cut in half 300% short

            Could happen in 12 months

            Made a lot of money.

            Scalpers and short term traders …most end up in the..

            TRASH HEAP…….almost guaranteed.

            I’ll stick to my trading rules. You can have yours

            LOCK….STOCK AND BARREL…….hands down….enjoy

          Feb 24, 2014 24:41 AM

          The deecay will ruin you if you hold that long. Your money though.

            Feb 24, 2014 24:56 AM

            Thats only a worse case 2 yesrs.

            You don’t go into a trade thinking its all roses.

            Margin interest is 3 to 4 percent. No big deal….no deecay.

            Only pay on the part thats borrowed. They can’t charge me on
            the capitol I already have on the trade.

            300 % long CEF too.

            Everyone to their own….some love the bank…HA

            Feb 24, 2014 24:59 AM

            Per annum on the interest. So….its nothing.

            Water droplet. Compared to my gains

            Feb 24, 2014 24:24 AM

            The decay I refer to is what is built into most 2X and 3X ETF’s and the reason I referred to them was because you noted you would be 300% short which by definition tells me you are using ETF’s to execute your strategy. Those do indeed suffer decay which will eat up your money over even relatively short periods of time. Since you obviously have no idea what I am talking about I suggest you get some professional advice before sinking the motherlode in or you will loe your shirt. Your thinking that your entire cost is 3% on margin is just simplistic. It does not work like that or everyone would get rich playing leveraged longs and shorts. You still need timing on your side and short holding periods are essential.

            Feb 24, 2014 24:35 AM

            WRONG….BIRDMAN

            HDGE…..using margin….its not a 3x or 2x. ETF

            You should ask before you jump to conclusions.

            3x ETF. ..VERY LITTLE MARGIN IS ALLOWED.

            Thought you would know that…..I GUESS NOT !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

            Feb 24, 2014 24:41 AM

            Also 3x ETF…..very little decay.

            Right now I have more than doubled my money in them
            I’m getting dollar for dollar….

            Very little is taken out. YOU NEED TO GO BACK TO SCHOOL

            Feb 24, 2014 24:28 AM

            I only jump to conclusions because you sound like the school dope writing crazy in all caps.

            Feb 24, 2014 24:37 AM

            CAPS…..are there to use Birdman…

            You really need to go back to the drawing board…kinda garden I would think.

            People use CAPS all the time in advertising. ….etc. etc. Etc.

            YOUR A HOOT…..

            Feb 24, 2014 24:42 AM

            Not only that using 3x or 2x etf…..you can’t margin barely.

            I said 300% long on margin….even told you paying interest.

            Poor market education. ..if at all…or experience.

        Feb 24, 2014 24:56 AM

        I never use stops but in the case of worry would rather use stops.
        You would never get me to buy an option.

    CFS
    Feb 23, 2014 23:57 PM

    How many cycles in commodities have you been through HH?

      Feb 23, 2014 23:34 PM

      A few. Last one was in around 06. Long the beans and corn.

      Beans were trading in the low 5’s and corn low 300’s

      Had about 300 contracts of corn long…no stops
      Rode it to the high 3’s.

      Beans had 200 contracts…maybe more or less
      rode those to 600’s.

      ALL OFF MEMORY. however got into buying expensive properties and should
      have sit tight.. that was a 15 mil. Plus trade. ….beans went to the teens and corn
      Doubled. BIG MISTAKE. I made lots but …..go figure.

      My main focus has been real estate.

      Lots of gold experience under my belt.

      Been into numismatics very rare stuff.

      Just a few I owned but those went to Heritage auction.

      1795 flowing hair dollar in PCGS MS65
      1795 10 GOLD BUST PIECE. .PCGS MS65

      Collected the rarest of the rare. Not into Numismstics anymore.

      Thats a crszy biz. Like land lots of sharks. The big coins have
      To go to auctions. All the dealers are mostly crooks.

    Feb 23, 2014 23:37 PM

    Try investing in art, it is very rewarding because you get appreciation and enjoyment combined. DT

      Feb 23, 2014 23:01 PM

      DT….it can be as long as people have the money to spend on it.

      Once the market turns down you cant sell it. Expensive art needs to
      be insured and it becomes a worry.

      Anyway, I lost my lust for it. That goes for everything.

      Feb 24, 2014 24:53 AM

      DT It’s got to be an exceptional work of art to make money in the coming crash. I used to collect antiques (modest Georgian and Vikky pieces) which over the past ten years have been worth mere pennies on the pound . Best laid plans and all that…..

        Feb 24, 2014 24:45 AM

        Agree. Waste of time unless you have the fortitude to wait out 30 years art market cycles.

    Feb 24, 2014 24:11 AM

    Some sanity from a Frenchman … who knew?
    Central Banks Spend No Time Thinking About Gold: Pierre Lassonde
    http://www.kitco.com/news/video/show/GSA-Investor-Day-2014/558/2014-02-24/Central-Banks-Spend-No-Time-Thinking-About-Gold-Pierre-Lassonde