GOLD (COMEX) gold

Originally posted by nailsnglue: ↑

Thanks Artvandelay01, I sent a note to admin about a new forum idea - "short selling opportunities". They seemed to like the idea (reply below) but it might mean that we lose the foresight/forwarning of people like Skol so I am still mulling the idea. Regarding your gold mining juniors, they can offer great opportunities, however, I heard that many hedge funds are sizing up junior miners for short selling since they actually are not profitable and in a gold correction would fall the most. Unless the gold price moves north today, I will close my long (effectively shorting) and wait for a retrace to the support line. Long gold in CNY probably still is the trade of the century over the next few years. BTC has significant risk still though plenty of upside potential. I don't see any relationship between BTC, Gold, USD - chart below.

Madmin commented:
Hi,
To test the waters here, can I ask you to set up a thread on ASX General, XJO, or in Short Term Trading called "Short Selling Oppotunities August 2020" and start a new one each month to see what sort of response you get?
If it is very well received we could add short selling as a specific topic, or ask management for a new forum, but we need to monitor the success of the topic first, as short sellers aren't usually the most popular posters in a sea of blinkered shareholders
I like the idea though, and please let me know how it's progressing.
Regards
Madmin

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Thanks for the feedback and chart @nailsinglue.

I have a high risk tolerance hence why I’ve backed juniors over producers or even physical gold. Not only that, I’ve dialed up the risk by buying a lot of company issued options in said juniors. The obviously has the effect of juicing returns on the upside, as well as compounding losses on the downside. I used to work in funds management so I understand the risks involved. It’s a high risk/high reward strategy.

The majority of juniors I have invested in I got at/near cash/asset backing, and are fundamentally undervalued relative to their peers. They are all debt free as well. This doesn’t mean they won’t escape any sell off, but it provides some risk mitigation. I doubt the hedge funds will dabble in the stocks I’m playing in, they are too small and illiquid but something to keep an eye on no doubt.

As for the relationship between gold and BTC, historically I agree. But if I’m reading the chart below correctly they look to be tracking each other quite closely over the past few months (see red circle)?