Speculators in July amassed record short holdings in the metal, meaning they’re wagering that the price has further to fall.
With gold prices tumbling to a five-year low, investors aren’t just getting out of gold, they’re betting against it.
Speculators in July amassed record short holdings in the metal, meaning they’re wagering that the price has further to fall. Also telling, the number of hedge funds that are hoping to profit from declines is near a record high.
Altegris Investments’ $513 million Futures Evolution Strategy Fund has increased its bets that gold will fall.
“The only place to be right now is short,” said Lara Magnusen, a La Jolla, California-based portfolio strategist at Altegris.