Tuesday, July 3, 2012

We Are Seeing Dislocations In Many Financial Markets


With specific regards to the gold trade, you are seeing a continuation of private buying of gold, and institutional selling of gold.  I think some of the institutional holders are credit-constrained, but there’s strong, strong underlying demand from individuals, wealthy people if you will.
So I think you are seeing a change in the holders of gold, away from the hot money, small hedge fund type of commodity speculator, who was buying gold in a momentum driven greed trade, to private holders who are buying gold as I have always bought gold, in the context of a fear trade.

No comments:

Post a Comment