Gold - $330 next as it continues its climb, page-6

  1. 256 Posts.
    There is a lot more to the LTCM story than that. They were mainly bought down by being so good, that every investment bank would copy every trade they did. When returns started reducing, all these inv banks started liquidating there positions, and as this started supply and demand went out of kilter, prices fell and more holders started to sell to get out before the panic set in, so on and so forth.

    LTCM did not hold a general position on any one asset, they would look for opportunities everywhere, they may short gold one day and a month later go long on gold.

    JP and Co are a different beast in that they have one position and are sticking to there guns. They are short, in a big way, on gold. And will not change their position, which has delivered billions in profit over time, and may lead to billions of losses in the future, but only time will tell.

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