Follow the money. A Bank of America Merrill Lynch survey found that cash levels in portfolios were at the highest levels since 2001, while Wealth-X Billionaire Census reports billionaires are holding $1.7 trillion in cash. According to regulatory filings, gambler George Soros, holding put options on some 4 million shares in exchange-traded funds, is betting heavily against the S&P 500.
Again, in this climate void of true price discovery and central bank manipulation, we maintain our forecast that when gold breaks strongly above $1,400 per ounce, it will spike toward $2,000.