One of London’s leading gold experts has urged his clients to dump their gold and silver holdings.
John Reade, an analyst at UBS, told investors to erase all their positions until the latest upward price surge ends, Ambrose Evans-Pritchard writes in the London Telegraph. Last week, gold ran up to $1,011 an ounce, not far from 2008’s record high of $1,030.
Gold has climbed amid the dollar’s drop to a one-year low.
Reade says futures contracts on New York's Comex exchange are flashing warning signals. The Comex experienced a surge of 6.4 million ounces in net long contracts last week. Such jumps in the past have on average presaged a 5 percent drop in gold prices over the next month. (more)
Isn't UBS a bullion bank? Aren't the bullion banks screwed if gold continues to rise because of their massive short positions?
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