Gold: Hedge Funds Are The Most Short They Have Ever Been

By the way, hedge funds are the most they have ever been in Gold right now, the least long, the most short, their net short position.

Obviously everybody who shorted gold, if you shorted it over the last few years, you are ahead. That trade is a winner for everybody. Let`s see what happens if the price of gold reverses between now and the end of the year  and we get a lot of hedge funds that want to book those profits. We will see how much profit remains to be booked if all the shorts at once decide to cover because I think a lot of people sitting on paper profits are going to find these paper profits difficult to realize when everybody is trying to realize them at the same time.

Meanwhile in the physical gold world the demand for gold continues to hit records as we are getting reports from the mints about what demand is for actual physical silver and gold coins.