Historically, every time gold's managed money net long position goes into negative territory (net short position), there is always a slight bounce into positive territory followed by a double dip into negative territory. We have already seen the double dip into negative territory and the shorts are already beginning to get squeezed!
After every double dip into negative territory, gold's managed money net long position always makes a rapid return to the long-term average of 105,787 contracts, but it never stops there. After bouncing from a double dip into negative territory back to the long-term average in positive territory of 105,787 contracts, gold's managed money net long position always continues rising to between 237,871-273,076 contracts.
From our estimates every 50,000 contracts of buying results in about a $100 per oz rally in the price of gold. If we go from -41,300 contracts back to the mid-range of 237,871-273,076 contracts, which is 255,474 contracts, it would be equal to a net 296,774 contracts being bought. This would result in gold rising by approximately $593.55 per oz from its settlement price one week ago of $1,628.56 per oz. This would equal a new all-time high gold price of approximately $2,222.11 per oz.
Augusta Gold (TSX: G) is worth 5X more based on what AngloGold (AU) paid for Sterling/Crown two weeks ago at the current gold price!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 174,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.