Loading ...What about the naked longs? I suspect a lot of them are momentum traders noticed the uptrend, and climbed into our sand box going long on contracts, ETFs etc. Naturally they came in late and high, and after prices start dropping, they cash out or sell the paper.
It could be Contracts, SLV or GLD etc etc. They have nothing real to sell, so they are naked longs, driving prices too high and then driving them too low. We’ve already seen crazy highs and crazy lows, but the primary trend is up.
I think they created those things as decoys to take investor’s attention away from precious metals, holding the prices net down for decades, but its not working so good anymore because of the obvious new highs anyway.