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When Hedge Funds Go Short, Gold Goes Up

by John Rubino on May 20, 2013 · 11 comments

Bloomberg is reporting on the rising number of hedge funds shorting gold: Gold Bear Bets Reach Record as Soros Cuts Holdings Hedge-fund managers are making the biggest ever bet against gold as billionaire George Soros sold holdings last quarter and Goldman Sachs Group Inc. predicted more declines after the longest slump in four years. The [...]

Velocity of Money and the Crack-Up Boom

Based on both recent history and mainstream economic theory the past few years should not have been possible. When you cut interest rates to near-zero, run deficits of 10% of GDP and buy up every government bond in sight with newly created currency, you get a boom, end of story. That’s just the way capitalism [...]

15 comments

Golden Bullseye

One of the lessons that gold bugs are learning, in the most painful way possible, is that you can’t trade a manipulated market. When big players with regulatory immunity can move an asset’s price — and can see resistance/support levels and moving averages just as clearly as anyone else — smaller traders don’t stand a [...]

33 comments

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