Salient to Investors: Gold prices and gold ETP holdings have the most-negative correlation since 2004, making the latter less useful as market predictors.. Mark Luschini at Janney Montgomery Scott said the disconnect is because a lot of money has left. Comex open interest fell to a 5-yr low this month and volatility
READ MORE... →Salient to Investors: Investors cut holdings in gold ETPs every month this year, erasing $69.4 billion. Hedge funds et al are the least-bullish since June 2007. John Paulson told clients last month that he personally would not invest more money in his gold fund. Goldman Sachs forecast prices will drop
READ MORE... →Salient to Investors: Barclays and Credit Suisse are predicting lower commodity prices as supplies increase. Dan Heckman at US Bank Wealth Mgmt said the US economy is showing ample signs of growing, and so the Fed will start looking at tapering by early next year. Heckman is underweight on commodities
READ MORE... →Salient to Investors: The World Gold Council data show that consumer buying of gold rose 53 percent in Q2 from a year earlier, almost making up for the record sales of gold ETPs. The Council sees a dampening of demand in the next few months in India due to restrictions on imports, but
READ MORE... →Salient to Investors: Gold’s swift fall has ravaged livelihoods around the world, while investors who lost big are shifting assets elsewhere and scaling back retirement plans. The market value of the world’s gold mining companies is down $271 billion since the September 2011 peak of $486 billion. Gold hit $850 on Jan.
READ MORE... →Salient to Investors: Hedge funds et al increased their net-long position in gold futures and options for the 4th consecutive week and the longest streak since October, while more than doubling bets on lower corn prices to a record net-short holding. Jeffrey Currie et al at Goldman Sachs said gold will decline
READ MORE... →Salient to Investors: The number of hedge funds investing in gold is at the lowest level since 2010. Farhan Mumtaz at EurekaHedge said hedge fund performance declines tied to volatility and withdrawals led either to closures or a shift in strategies – the number of funds investing in gold fell
READ MORE... →Salient to Investors: George Soros and BlackRock cut stakes in gold ETFs in Q1, signaling waning investment demand. The World Gold Council said gold ETP demand dropped 13 percent in Q1 from a year earlier and outweighed a surge in purchases of coins, bars and jewelry in China and India. Frank McGhee at Integrated Brokerage
READ MORE... →Salient to Investors: George Soros cut holdings of gold ETPs in Q1, 2013. John Paulson maintained a stake and Schroder Investment Mgmt bought in Q1. Deutsche Bank said assets in SPDR will probably drop by an additional 2 million to 4 million ounces after slumping 9.7 million ounces since mid-December. Jeffrey Currie et al at Goldman Sachs
READ MORE... →Salient to Investors: John Paulson lowered stakes in gold miners in Q1 and added shares of companies that stand to benefit from a stronger economy. Paulson has done well investing in companies undergoing mergers or restructurings, but his big bets in the past 2 years on macroeconomic developments have undermined that
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