Fueling Golds 2016 Upleg - GoldSeek.com
And that means gold-futures speculators and stock investors alike are going to have to seriously rethink their whole gold thesis. As they realize that rate hikes wont slaughter gold, investment demand is going to start returning. And coming from such epically-extreme anomalous lows, it is going to take a massive amount of gold buying to restore normalcy in the gold market. That normalization is inevitable in 2016. Major gold uplegs have three distinct stages of buying, with groups of traders handing off the baton like a relay race. New gold uplegs are initially ignited and fueled by speculators buying gold futures to cover their risky hyper-leveraged shorts. That sparking surge of buying lasts several months or so , propelling golds price high enough to get speculators interested in redeploying capital in long futures positions again. Unlike short covering which is mandatory and forced as gold rises to prevent speculators from getting wiped out, long buying is totally voluntary and far less frantic. So it can take a half-year or more for the speculators to reestablish their upside bets on gold. That extends golds new upleg long enough and high enough to convince investors with their vastly larger pools of capital to start returning, which takes years. Today gold is in an unprecedented position where the coming speculator gold-futures short covering, speculator gold-futures long buying, and stock investor GLD-gold-ETF buying is all aligned to be utterly huge! As the extreme anomalies of recent years spawned by the Feds stock-market levitation unwind, the vast gold buying necessary to mean revert that market to norms is going to fuel a mighty new gold upleg. Lets start with the futures speculators, the early buyers necessary to get gold moving higher again for long enough to motivate investors to return. This chart shows American futures speculators total short-side and long-side bets on gold weekly over the past several years. These guys are so far out over their skis on the bearish side of this trade it is mind-boggling, and their only way out is extreme gold-futures buying. American speculators aggregate gold-futures positions are released every Friday afternoon current to the preceding Tuesdays close in the CFTCs Commitments of Traders reports. The latest read when this essay was published was December 22nds. That was the week surrounding the Feds rate hike which was supposed to obliterate gold. Yet since gold didnt plunge as expected, speculators quickly covered.
It Has A Face Value Of $5.00 Canadian Dollars.
The most common forms of coin collection are gold and silver though some may collect platinum bullion and numismatic. Bullion coins are based on demand of and value of the given. These coins are made in limited quantity or for commemorative reasons. The only problem is the dollar depreciates. The United States rare coin and bullion reserve has announced the release of numerous gold coins that were previously held by the rulers of various countries. And those antique coins are the only coins which are pure and whose weights are backed by the US government.
In The Last 12-14 Months The Dollar Has Lost 12% Of It's Value Against Other Currencies Whereas Gold Has Increased In Value By 24%.
So what if you keep your cash and invest it into more traditional investments? But be sure to verify the information properly and do not forget to check out the grading of the coin. The silver version was then introduced in 1988. Your one-time fee means you won't have to pay any additional commissions or fees to buy or sell your gold for the next 5 years! Therefore these antique coins can be considered to be a sound investment. The Royal Canadian Mint issued a very limited number of special edition Silver Maple Leaf coins in 1998. And those antique coins are the only coins which are pure and whose weights are backed by the US government. Many people want to invest in something they can get out of in an emergency, and perceive buying gold as a very long term commitment. The main goal of the grading process is to certify the accuracy and genuineness of the coin.