If Not the BOE, Someone Else is Short Gold

Although this is not the stuff of durable, long-term rallies, can you say increased potential for a short squeeze.....

From bullionvault.com

In June,  Howard Ward, the chief investment officer of GAMCO Investors, made a bullish call based on the severity of the speculative short position:

"It was off the charts, just like it was a week ago for the short position and the Yen, the Pound and Euro. Well, we've seen what happened to that. You wanted to be on the other side of that trade. I'll take the other side of the gold trade as well. Whenever so many people are on one side, I will take the other side. I think gold probably rallies between here and the end of the year."

There is certainly a pervasive sense of doom and gloom not only for gold, but for the entire resources space. BCA Research's Commodity & Energy Strategy report points to a recent Bank of America-Merrill Lynch fund manager survey, which shows that exposure to commodities is as low as it was at the end of 2008.

 

BCA's first-hand experience reveals a similar investor reaction to resources:

"Recent client visits to Europe, Australia and Asia confirm widespread pessimism towards the outlook for 'anything outside the US."