Waiting for the Specs

April 13, 2023

by Craig Hemke Sprott Money

There’s a notion going around that somehow COMEX gold is overbought and in some sort of exuberant speculative bubble just because price is near all-time highs. Let’s dispel that myth today.

I’m sure you’ve seen this idea bandied about by permabears and others with an axe to grind. The COMEX gold price is near an all-time high, so surely it’s a bubble that’s about to pop. As if every cab driver and shoe shiner is suddenly investing in gold and gold miners.

The current open interest and Commitment of Traders positioning betrays this notion. For proof, all we have to do is go back and look at a few metrics from the previous two attempts COMEX gold made at breaking above the $2000/ounce level.