When you use money, it's got more conviction, no? gold $4,000 in 18 months - zPrediction - zBet

MsMorrisine

these were call options. these can go to $0.00 value if the bet is wrong in 18 months.
(if, say, gold doubles in 6 months, one could sell out for a likely extremely nice profit.)

https://www.bloomberg.com/news/articles/2019-11-27/huge-bets-that-gold-could-triple-to-4-000-trade-in-new-york

markets
Bold Bets That Gold Could Triple to $4,000 Trade in New York
By Yvonne Yue Li
November 27, 2019, 1:32 PM EST Updated on November 27, 2019, 7:00 PM EST

The gold options market saw $1.75 million in block trades betting the precious metal could almost triple in more than a year, surpassing the record.

Around noon in New York Wednesday, 5,000 lots of a gold option giving the holder the right to buy the precious metal at $4,000 an ounce in June 2021 changed hands. The bets were sold at $3.50 an ounce.

“It’s like 18-month term life insurance; what will the world look like if gold is at $4,000,” Tai Wong, the head of metals derivatives trading at BMO Capital Markets, said in an email. “They are hoping for a quick violent move,” he said, referring to the people who bought the call options.

Gold futures climbed to a record $1,923.70 an ounce in 2011 as the Federal Reserve bought more than $2 trillion of debt to stimulate the U.S. economy. While bullion has rallied 14% this year, the precious metal is still 24% below the current all-time high.

Bullion for delivery in February settled at $1,460.80 an ounce at 1:33 p.m. in New York. Futures for June 2021 delivery, which settled at $1,494.40 on Wednesday, will need to almost triple before expiration to make the call options profitable for its holder.

— With assistance by Michael Roschnotti

cohodk

Even $500 over the next few montha would net a substantial percentage return.

blitzdude

Either Derby will finally become fiat rich or the latest powerball winner just needed somewhere to park a few bucks. My guess is in 18 months gold will be $100+/- where it is now.

ricko

I strongly doubt $4000/oz gold in that period.... barring some major black swan event.....Gold at $4K would indicate an economic disaster of magnitude... Cheers, RickO

ShadyDave

Yeah, $4,000 gold would probably mean WWIII. No thanks!

cohodk

I think it could be entirely possible that gold could rally substantially without any "armageddon" scenario.

Silver rallied from 18 to 50 from 2010 into 2011 without any "armageddon".

Mike59

I think the price of the metals could be Substantially higher in 18 months. I'm not sure of their prices but I believe they can be much higher (double or more). Here are my reasons.
1) More money chasing less publically traded companies. As more companies are bought out or merged together there are fewer company stocks available.
2) Record the amount's companies buying back billions and billions of dollars of there own shares of stock.
3) Worlds central banks buying Stock. Central banks increased their holdings of equities beyond $1 trillion last year as they sought to diversify their reserves away from low paying bond yields.
4) About 25% or $15-$17 Trillion dollars worth of world bonds paying negative interest rates.
5) Governments are afraid of Bitcoin or other Block-Chain equities. Gov't want central authority over any type or form of money. That lack of central authority is the primary reason governments are afraid of the cryptocurrency.
6) Stock Markets are at record levels and people are afraid of a Crash.
7) Record levels of " Cash on the sidelines" and people are looking for another way to protect some of their assets (Insurance)
8) Financial Advisors and RIA's are starting to add these commodities to their clients accounts.
9) Most younger people do not believe that Social Security will be able to pay them in retirement and more money is flowing into retirement plans.

Im sure I've left out some of the other reasons but this is just MHO. I think metals go higher in the future.
Mike

JohnnyCache

I don't see it. I feel it's unlikely to push past $1500 with momentum.