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Greetings!
131 BILLION SERVED
No, that's not the number of hamburgers McDonald's has sold. According to Bloomberg, "Gold traders are the most bullish in four months after investors accumulated more metal than ever and hedge funds raised bets on gains to a five-month high." Investors worldwide now hold over 2400 metric tons of gold valued at approximately $131 billion. That's a lot of gold. In fact, it is a record high in exchange traded products such as GLD.
Gold analysts, including myself, have diverse opinions. We are all correct a certain percentage of the time, some having a higher percentage than others. You can always find gold analysts who hold an opposing view whether it is bearish or bullish. But in this case the people have spoken. Small and large investors as well as institutional players over the last seven weeks have generated consecutive gains in gold holdings on the exchange traded products, which are backed by bullion. There can be no doubt demand for gold is increasing and growing stronger.
Investors are accumulating gold because of the European Unions debt crisis, even though that remains less murky now that they have temporarily solved the crisis in Greece.
There are also the investors accumulating gold as the United States and the European Union keep interest rates at near zero, fueling protective measures against inflation. But for whatever reason, the path is clear: investors and traders continue to build their net long positions in the precious yellow metal.
Wishing you as always good trading,
Executive Producer
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