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What A Gold Shock Could Look Like

Jeff's article: I once asked my institutional investor friend, who used to work at Goldman Sachs and has been a gold owner for many years, what would make him buy more bullion. Without hesitation he said, “When the price breaks out.”

Well, as is clear to the world, gold has broken out of its long-term trading range.

My friend is not alone in this sentiment of waiting to buy an investment until it’s rising. Institutional advisors, brokers and managers sit on the sidelines until a dormant asset class comes alive and establishes an uptrend—then they jump in.

With the recent uptrend in the gold price, it’s time to look at what kind of cash could come into the gold market from these types of investors. Institutions will want exposure. Not just because financial and market risks are higher, but because gold can net them a profit.

It’s not just me saying this. Look what CPM Group stated in their 2018 Gold Yearbook (emphasis mine):

• CPM secured the best available list of 6,500 hedge fund and commodity fund managers. Of that enormous pool of managers, only 132 said they invested in metals… of the 132, 35 said they looked at macro and fundamental factors. The rest relied on computerized and traditional technical analysis based on price movements, price momentum indicators, moving averages, open interest, trading volume, and other such market data.

Only 2% of hedge funds currently have any gold in their portfolios. Further, the majority look at computerized and technical signals to tell them when to buy—by any reasonable measure gold has given them that technical signal.

So what kind of cash could enter the gold market?

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43 Comments on What A Gold Shock Could Look Like

    • @GoldSilver (w/ Mike Maloney) Hi Mike, Thanks so much for getting back and not being too cool for school and replying unlike other gurus ! I have watched all your videos Mike. Hidden secrets, talks that you have done etc What is your current opinion ? stay away from stocks and hold physical ?

    • @Tim Jones I buy physical, but I own a LOT. I’ll be looking at mining stocks soon. But just a tiny spec position. In the long run, physical outperforms miners.

    • @GoldSilver (w/ Mike Maloney) I have 20% of my wealth in Gold and Silver Physical. ( 2:1 ) 8% in mining funds and the rest in cash, ready to buy physical or mining stocks if and when the market crashes. I am a big fan of yours and respect and am thankful for all you do. How long do you think they can keep the plates spinning for before it all falls apart.

  1. I’m an avid follower from India and I too believe Gold and Silver is the only way and I’m convincing my friends and relatives to my best.

  2. with my gold and silver i ll buy oil field and other energy production. the world cant work without energy.

  3. Looking forward to reading your next book. 👍
    I saw another person’s video on YouTube today saying that millionaires don’t invest in gold – 😂😂😂😂😂

  4. Remind everyone that they should only buy from trusted sellers.
    Not off ebay or gumtree etc.
    We dont want people getting burnt by dodgy sellers because it will only hurt the cause when the wider public get scared.

    • I’ve been buying and selling on Ebay since 2004. I have never received any fake gold, silver, or platinum. There many reputable dealers that sell on Ebay. Granted there are some selling fake metals. Always check sellers feedback and their location. Most bullion sellers do not accept returns but you are covered by Ebay money back guarantee.

  5. I know what it looks like at the open this AM, and it aint pretty, The CME strikes again! A real overnight slam job!

    • “Wail who live in the market district all you merchants will be wiped out, all you who trade with silver will be destroyed” (Zephaniah @)

    • Looks like CME naked shorting to me, im out, ill get it way cheaper later, broke below key support level, 30min RSI keltner violated. good luck

    • Mark 4:19“And the
      cares of this world, and the deceitfulness of riches, and the lusts of
      other things entering in, choke the word, and it becometh unfruitful.”

  6. So of the thousands of institutional investors, all were simply waiting for gold & silver to “break out” to the upside of their languishing price range before investing in them & even though it’s obvious gold & silver have already begun their breakout, very few have actually followed through with their plans to buy them. But the supply is actually very limited and the time might soon be coming when you will have to wait a long time for delivery or not be able to purchase at any price. The time to have bought gold & silver was when they were despised and their price was going down or languishing! SURPRISE, SURPRISE!!! But today you can still buy, even though it’s not at the rock bottom prices like a few months ago.

  7. Try to paint a picture of how it would look like after the CRASH, if any crash is allowed.. Bernard Lietaer might have some ideas.. or Ravi Batra.. ?🤔?

  8. You talk like there is no rehypothication out there. Like they cant and dont sell infinite number of paper contracts…

Comments are closed.