Gold and silver positioning: insight and analysis
Dear Investor, This week, ABC Refinery's Global Head of Institutional Markets, Nick Frappell, took some time to provide some insight and analysis on what drives gold and silver positioning, particularly centering around the CME. What does data tell us and what drives positioning? Many investors invest in gold and silver via futures exchanges, usually via pooled funds operated by CTAs (Commodity Trading Advisors). Generally, the CME combines all these entities that manage money on behalf of customers into one category called ‘Managed Money’, simply because that captures what CTAs and ‘money managers’ do; additionally, this category is reported as a single category by the CFTC, the US Commodity Futures Trading Commission. Money managers like to invest via futures exchanges for several reasons. The exchange itself provides: A transparent price discovery mechanism Access to liquidity Reduced counterparty risk: participants face the exchange and no...