For the first time in recent months, the puts on SPDR Gold Shares -- the exchange-traded fund that everyone uses as the primary proxy for the commodity -- are becoming more expensive relative to calls. Changes in “skew” which is the difference between the volatility of out-of-the-money puts and calls, is often the canary in the gold mine.
According to a proprietary trader at a major international bank, “Skew has come in a lot, and it has flattened. This tells you that more people want to buy protection than buy upside, calls. This is natural with anything that has had a big price run-up, but this is somewhat of a bearish indicator for gold. The mood is changing.”
Did it never exist except in the minds and hearts of grant-seeking scientists and academics, ratings-obsessed television networks and their misinformed viewers and opportunistic eco-activists? The only evidence that human activity is causing global warming comes from computer models. These models take what the people who develop them know about how the earth’s climate system works and attempt to predict the future. Computer models are not evidence.
According to Victor Sperandeo (also known as “Trader Vic”), it is obvious that when you’re printing huge amounts of paper vs something that is considered money, the paper will depreciate and the hard assets will go up. So gold and silver will do well—silver a little less so—but gold certainly.