Mini bubble in precious metals? It's rather fair to say that retail traders and investors see precious metals as attractive once again. They view it as a good play to "hedge" against central banking failure, runaway inflation, and a bear market in the U.S. dollar. As a result of a Fed that has lost all its credibility and a volatile USD, precious metals have been one of the best performing assets YTD.
This has led to an explosion in metal ETF holdings (GLD for gold, SLV for silver) to roughly 2012 (gold) and 2014 (silver) highs. With so much retail interest in gold and silver, we have to beg the question of whether prices are nearing a top or have already carved in a top. Extreme bullish sentiment, and near record speculative net long positioning in both gold and silver futures are really leading us to lean towards this thesis.
We are henceforth very cautious about being long the precious metals at this stage. Not necessarily bearish, but cautiously aware of these facts.
#Forex #Stocks #Trading #Investing #Money #Economy #Finance #Business #Friday #FOMC #QE #NIRP #Brexit #UK #Europe #Euro #UK #Gold
This has led to an explosion in metal ETF holdings (GLD for gold, SLV for silver) to roughly 2012 (gold) and 2014 (silver) highs. With so much retail interest in gold and silver, we have to beg the question of whether prices are nearing a top or have already carved in a top. Extreme bullish sentiment, and near record speculative net long positioning in both gold and silver futures are really leading us to lean towards this thesis.
We are henceforth very cautious about being long the precious metals at this stage. Not necessarily bearish, but cautiously aware of these facts.
#Forex #Stocks #Trading #Investing #Money #Economy #Finance #Business #Friday #FOMC #QE #NIRP #Brexit #UK #Europe #Euro #UK #Gold