On Tuesday morning, Bloomberg ran the headline: “Gold’s Bull Market Has Ended.”
They’re not wrong about the tape.
Gold broke below $4,000 last month — the worst monthly drop since 2008.
Nearly $18 billion has left the gold ETFs since January.
Now read the other headline that ran the same morning, on the same wire:
“China’s PBOC Buys Most Gold Since 2023.”
While ETF investors dumped four million ounces, the People’s Bank of China bought 480,000 ounces in June.
That’s its 20th consecutive month of buying and its largest purchase since October 2023.
Central banks as a group bought more than 240 tonnes in the first quarter.
They accelerated as the price fell.
And the World Gold Council’s June survey found more central banks than ever plan to add gold in the coming year.
So who sold?
Funds and traders are graded on 90-day performance.
Who bought?
Institutions that think in decades and never post a margin call.
The futures data says the same thing…
TD Securities’ desk notes the decline came from bulls cashing out — short positions remain near historic lows. A washout, not a verdict.
In twenty years of financing resource deals, I’ve never watched a bull market die while the largest, slowest money on earth was speeding up its buying.
Front-page obituaries don’t run at bottoms because the news is bad.
They run at bottoms because everyone who wanted out is already gone.
The 2016 charter price is open until Sunday, July 12th, at Midnight.
The 3 Best Gold Stocks to Buy Now was written for a tape exactly like this one.
[ CLAIM THE 2016 KRO PRICE → ]
Regards,
Marin Katusa
Get real-time alerts right away. Follow on X: @KatusaResearch and @MarinKatusa
Details and Disclosures
Investing can have large potential rewards, but it can also have large potential risks. You must be aware of the risks and be willing to accept them in order to invest in financial instruments, including stocks, options, and futures. Katusa Research makes every best effort in adhering to publishing exemptions and securities laws.
By reading this, you agree to all of the following: You understand this to be an expression of opinions and NOT professional advice. You are solely responsible for the use of any content and hold Katusa Research, and all partners, members, and affiliates harmless in any event or claim.
If you purchase anything through a link in this email, you should assume that we have an affiliate relationship with the company providing the product or service that you purchase, and that we will be paid in some way. We recommend that you do your own independent research before purchasing anything.
