I have said for a while that if we want to see any sustained move in the metals we need large funds to start buying. We can see by the increased investment in EFTs such as GLD that big money has begun to invest some money in the sector. This article posted over at Gold-Eagle recaps what we have seen this year and the similarities from 2012. These are crucial buyers with large wallets that can support moves higher.
…
We all know that gold has seen a positive 2016. Even with the stock market performing well, it seems as though many money managers and bankers the world over are perfectly happy to invest in gold. We’ve seen that in the past months with Chinese central banks investing more in gold. But what if it’s not enough that central banks are buying up gold? What if you needed to see the hedge funds move in on gold before you made a decision?