From Jeff Clark, Editor, Stansberry Short Report:
Let’s hope the commercial traders are right.
If they are, we’ll get one more chance to buy gold at lower prices.
And it may be our last.
Let me explain…
Back in December, the weekly Commitment of Traders (COT) report showed that commercial traders’ net short interest in gold had fallen to less than 6,000 contracts – the lowest level in more than 15 years.
And it was a big sign that the price of gold was nearing an important bottom.
You see, commercial traders are the “smart money.” They’re merchants, miners, explorers, and bankers in the gold business. They use futures contracts to hedge their exposure to gold and protect themselves from adverse downside moves.
The short position in gold is almost always a positive number – meaning that commercial traders are usually short the metal. That makes sense… since most commercial…