Possibilities
Zero Hedge offers this news as a possible reason for the quick move up in gold the last couple of days:
Hong Kong is pulling all its physical gold holdings from depositories in London, transferring them to a high-security depository newly built at the city’s airport, in a move that won praise from local traders Thursday.
As ZH said on Twitter: “likely reason for gold move: HK recalls gold from London, London likely has low/no inventory. Recall/short squeeze: ”
That’s as good a reason as any other I’ve seen — which is none.
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I’ve been thinking about putting on a small put position on GLD…any thoughts?
Comment by fatcat — 9/3/2009 @ 1:07 pm
I’ll let the ‘traders’ offer their thoughts if they have any — hard to say without knowing what month/strike you’re looking at. It seems to me that there have been quite a few ‘fake out’ moves of late, so maybe fading the big move could work. Then again, people trying to fade the ‘hot’ stocks have gotten crushed for five of the past six months.
Me, I’m just a trend-following moron. And not necessarily a very good one, at that.
Comment by BMB — 9/3/2009 @ 1:19 pm
Forget what I said,BMB…the premiums are 3x on the puts now…too expensive…
Comment by fatcat — 9/3/2009 @ 1:23 pm
So you were probably not alone in that thinking…
Comment by BMB — 9/3/2009 @ 1:32 pm
Maybe you’ll get another chance. Gold isn’t exactly over-extended here. It’s only had a two-day move. It could surge higher with some pent-up buying. Besides if it’s the only thing moving big, you’ll definitely get some players in–in both directions.
Comment by Maria — 9/3/2009 @ 3:19 pm
Large- Large Volume in Gold trades … I like that
Comment by Bruce — 9/4/2009 @ 6:13 am