It Seems Like Hedge Funds Are Jumping Into The Gold Market
- The popular narrative is that the gold market is currently quiet and dead and there is very little investor interest.
- That is not supported by the large amounts of volume that we’re seeing in the gold mining and leveraged gold mining ETFs.
- The volume has increased to the largest levels in history and it seems to be hedge funds who are getting into the market.
- Since most of the interest seems to be on the short side this may provide a good opportunity for patient gold mining investors.
The dominant narrative in the gold market has been that investors have fled the sector in search of better returns in the rest of the markets as the Fed has stabilized the system. In other words, the gold bubble has popped and the last investor needs to shut off the lights when they are done.