Jon Nadler, Metals Market Analyst at Kitco, was one of my co-speakers in Montreal last weekend. I have known Jon for a few years now. In the midst of the emotionally charged commodities space, I have come to respect Jon's commitment to fact-based analysis. His recent interview on gold is worth a read:
“What we really see is a momentum- and index-fund-driven speculative move that started almost on cue on Sept. 1. They've been piling in, hand over fist, with margin positions and futures positions that have now mushroomed to a level that's unreal—historic highs, on the order of 750 tons of long positions. They outnumbered the shorts 9:1 as of the week before last; it has since narrowed to 7:1 [as of Tuesday, Oct. 27]. Still, that's way distorted.
But I have to say from the get-go, I'm not a gold bear. I know that anybody who doesn't say “$2,000 gold!” is automatically a bear, but I'm just a realist who looks at supply and demand.”
Read the full article: Gold is not in a Bull Market.
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