economy
As gold's tumble continues, traders bet the pain may last for two more years
Selling in the precious metal just keeps getting worse, with the GLD ETF now down 25% from its intraday record in February.
TL;DR
- The GLD ETF is down 25% from its February intraday record, with recent options trading showing a strong bearish sentiment.
- Traders are buying put options on GLD, with some bets placed on significant price declines over the next two years.
- Factors contributing to gold's drop include sales by Turkey's central bank and gulf nations, and increased duties in India.
- Options trading in gold miners (GDX) is more optimistic, with calls outpacing puts.
- Gold miners may represent better value compared to gold itself, especially if their production costs are significantly lower than current or future gold prices.