“Look at what they do, not what they say. They are fleeing from long-standing downside bets they’ve rolled over, year after year, for many years. Some clueless hedge funds (the so-called ‘managed money’) are taking them over. They will pay an enormous price for doing that. Come mid to late August, for example, some of them are going to be forced to deliver real gold they don’t have. By October, some will be scrambling to source gold bars for delivery. Others will get out sooner than that, but they will pay a very heavy paper money price to do it.”
MK note: At the link above Goodman posts the evidence of bullion bank withdrawal from the short side of the precious metals markets. I’ve alluded to this potentiality in previous postings including one made here yesterday. The banks are ahead of the game. Hedge funds and the like will follow suit once it registers with them that the game has changed. Then the fun begins. . . . .We could be in the early stages of a quantum shift in the way gold and silver (and by the way, the USD) are viewed among big money players.