investmentcontrarians.com / By Sasha Cekerevac / July 17, 2013
You’ve got to change with the times. One point that I’ve reiterated several times is that it’s vital to deploy an investment strategy that incorporates the current market environment when determining how to allocate one’s portfolio.
A great example of that has been the recent climb and rapid drop in the price of gold bullion. A couple of weeks ago, I alerted my readers that a majority of the selling pressure appeared to have been concluded, and that a short-term bottom might be developing in gold bullion.
Since that time, gold bullion has indeed begun moving up in price.
When considering an investment strategy, it’s always important to try to determine what the large institutions are doing. Because these institutions deal with such a vast amount of funds and their reputations are constantly at stake, their actions should help shape your own investment strategy.
As I have said before, it appears as though a large number of institutions are close to completing their distribution of gold bullion. Over the past week, sentiment among these large funds has shifted as they too are adjusting their investment strategies.
That can be seen by the “Commitment of Traders” (COT) report released by the Commodity Futures Trading Commission. The data from the July 9 report show that institutions did indeed increase their long positions in gold bullion. (Source: “Commitment of Traders,” Commodity Futures Trading Commission web site, July 9, 2013, accessed July 15, 2013.)
Thanks to BrotherJohnF