Hedge funds have been lowering their holdings of long-time favorites like gold. Holdings in GLD were lower than they have been in at least four years, equaling just 0.6% of long positions as the ETF fell 6% in price…

Like Howard Marks recently said:

“There is nothing intelligent to be said about gold. Nobody can tell you the right price for an ounce of gold. People will tell you it should go up or go down. To make any intelligent statements about investments you have to know what the right price is. You can’t do that with an asset like gold, which doesn’t produce any cash flow. So you can buy it out of superstition or ignore it because you are an atheist but you cannot buy it with an analytical foundation.”

Which begs the question: where has Peter Schiff been lately?

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4 Responses to Chart: Hedge funds are dumping gold like there’s no tomorrow

  1. KB says:

    I am not a gold bug.
    However I noticed that some gold permabull threw out the towel recently.
    It makes me scratch my head because despite the “gloomy” perspective gold
    prices keep in trading range.

  2. James Sutton says:

    In response to Mr. Marks(almost misspelled his name with an x) adjusted monetary base/reserve ounces seems like a good place to start. It certainly reflect pricing accurately into the 50′s.

  3. frank stein says:

    The way to invest in gold is to buy an ETF that pays dividends and invests in gold and commodities, such as GGN. Deflation still has the upper hand but eventually inflation will kick in because everybody, including the reluctant Europeans, will print money. Perhaps it will take a popular revolt with decapitations or burnings of politicians to persuade them. Will it happen first in Greece or Spain?

  4. Turok says:

    I find Howard Marks argument quite linear. I thought any asset class was led by supply/demand. In other words, any investment thesis can be developed, whether you`re long Consumer Staples at 20x cash flow or Gold at $1,600.

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