Largest Hedge Fund Increases Gold Holdings by 575%
Dear Reader,
Bridgewater, the largest hedge fund in the world, has been buying a lot of gold lately. In fact, their gold exposure due to aggressive buying in the 3rd quarter of 2017 now puts them as the 8th-largest owner of GLD.
Their gold holdings combined now make it the 4th-largest position for the fund.
A move like this will surely add to additional buying from investors who are looking to track the success of Ray Dalio’s Bridgewater.
We’ve also been tracking our core holdings when it comes to gold ounces in the ground.
The insiders are buying here, too. Keith Neumeyer and other First Mining Finance insiders have been buying shares on the open market.
Keith, who has already bought millions of shares on the open market, continues to buy. Keep in mind that he’s the founder of the company and takes NO salary! He’s all-in, and continues to buy more. This is a very bullish indicator for First Mining Finance (TSXV: FF).
The manipulation of the gold price has been relentless, but it’s not having the same effect as in the past.
Yesterday morning, someone dumped 15,000 contracts into the market in under two minutes – that’s $2 billion worth of gold!
It only moved gold down $18, but below its 50-day moving average. Two things to note: 1. This trick is getting old, and it isn’t taking gold down $30+ anymore. 2. This is blatant manipulation, in an attempt to get computer algorithms to push gold lower on the breakdown of key technical support.
This is all coming to head very soon, in our opinion.
The physical supply is just too tight, and the production of gold from the mining giants is in decline.
As noted last week…
*** Of the world’s top 10 gold mining companies, all are seeing a decline.
***Not a single large mine is being built right now – not one!
***All mines deplete, so it’s not going to get any better.
Here is what Amir Adnani, chairman of GoldMining (TSXV: GOLD), said to our friends at Wealth Research Group last week:
“The average grade of gold being mined in the world has been in a perpetual decline. The discoveries have become harder and more expensive to find. The low-hanging fruit for decades – if not centuries – of mining something as ancient and historic as gold means that there needs to be more money spent on exploration to find resources. But despite all of that, we had a bear market from 2012 to early parts of 2016 that meant major gold mining companies completely starved their exploration divisions and activities of oxygen, that being capital for exploration, and as a result, gold resources and reserves are currently at a decade-low for the gold industry.
What is even more compelling to me is the fact that despite increased explorations in 2016, we’re still not seeing the new discoveries come about at a rapid enough pace to make a difference here.
This is absolutely a key trend that any gold investor needs to pay attention to – the fact that these total resources and reserves are at a decade-low. Gold miners that are mining gold on a weekly and monthly basis need to replace reserves that they produce from with new resources, and exploration is a long-term activity. It takes years to spend the money, move the rigs around, find those discoveries, and do the permitting.
From the first exploration drill result to when a project can become a mine is 10-15 years. So again, this is definitely a very important dynamic to be aware of, and it’s why we’ve been so focused on acquiring resource-stage gold projects during the bear market from 2012 all the way until this year.”
In our opinion, owning physical gold and a few key gold resource companies, like First Mining Finance and GoldMining, is the best way to position yourself, giving you plenty of exposure to the upside without taking on the conventional risks of active mine operators who are depleting their precious resources at exactly the wrong time, when prices are being artificially held down.
Best Regards,
Daniel Ameduri
President, FutureMoneyTrends.com
