TSXV:SIC - Post Discussion
Post by
geezer21 on Mar 02, 2024 4:56pm
Gold Miner Stock Valuation Disconnect From Gold Price
Adam Hamilton article detailing the disconnect between the price of gold and gold miner stocks:
https://www.zealllc.com/2024/gdsklgsh.htm
"Astoundingly as analyzed in my essay last week, total spec longs which help drive major gold uplegs have been fully reversed back under early-October levels!," Hamilton said.
Significant to what Hamilton said open interest at about 400,000 on the COMEX is approximately of half it what it formally used to be as reported by wholesale gold trader Andrew McGuire on 9 February 2024 at the 5:40 mark in a video release:
https://www.youtube.com/watch?v=FO8oemodXZM
COMEX leaverage through the futures market determination of the price of gold has severely weakened as physical gold buying is draining gold out COMEX and LBMA vaults as deliveries are being taken and spec trading on the futures market is declining. Futures market ability to suppress the price of gold is seen in the price of gold continuing to rise to record level as every smack down in the price of gold has been overcome and surpassed.
Hamilton reports spec positioning cycles reverse but now in addition they are weaker, short lived, and surpassed as seen in the latest upsurge in the price of gold. More and more price is being determined in the physical gold trading.
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