Hi Gents, thought i would pop in, have been viewing keenly from afar, hope you dont mind, the other thread worn me out today
I found this on another thread, if you look at the “Commercial’ net contract position (bullion banks, miners, producers) they are net short 290,000 contracts. 1 contract is 100 oz. That net short position is as high as it has ever been apparently.
Next bit is per the post - ‘The interesting part is the net long position is dominated by non-commercial, which comprises managed money (hedge funds, investment banks) and “other’ which is the public and traders. A year ago the longs were dominated by managed money (60% of longs). These guys have no interest in standing for physical delivery so would generally close their contracts meaning the shorts had no need to worry about their physical gold holdings to meet the longs. That picture has changed in 12 months and the long position is now dominated by the other category (47% and has doubled in the last 12 months). The other category are more likely to stand for delivery and there is basically insufficient physical supply for the shorts to cover this. And the shorts know it.so,I think we are currently seeing a bit of a tree shake by the shorts in the hope the “other” longs will panic and close out their contracts. The issue is the “other” traders operate far less predictably than the managed money. So we could see a short squeeze on gold develop over the next 6 to 9 months. Game on.
This makes some sense in theory, but interested to hear what more learned gentlemens take on this is, sort of supports your outlook Corgi and Noob
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