Gold and gold miners really doing well recently. Somebody had an interesting tought the other day where their hypothesis is that the exact opposite of what happened in the oil futures market could happen on the long side of the gold market. It's seemingly well known that the paper vastly outweighs the supply of physical gold held by exchanges, so if everyone wants delivery of the physical at contract expiry, there will be delivery problems. The other side to that trade is this has been known for a long time, yet it never happens. A run on physical gold would mean a lot more unforeseen issues, IMO.
Equities are looking rather weak here, still sitting around the 50% retracement and 50-day moving average, which is ~2800 on the S&P. Volume is trailing off, technicals still weighted slightly towards bullish. Not really a good idea to buy into weakness and we're at a point critical point here, but the trend is still marginally higher. Lots of trading on virus news recently instead of economic news.
Every time I hear investors talk about gold, this image comes into my head:
Like I was looking around my apartment this morning, and you know? I realized there was just a lot of gold that was missing. In fact, I'd toss out my laptop, a car, an apartment, my collection of wine all for a bit of gold bullion, knowhatimean?
Is this the real life? Are we really still living in the 16th century?