Jeffrey Nichols writes:
... But now, those hedge funds managers wishing to switch from gold to equities and bonds have largely depleted their bullion holdings. In addition, with the recent rise in long-term interest rates, the bull market in bonds is probably over — and, though equities, remain strong, some fund managers are wondering just how long the party on Wall Street will last.
This shift in expectations is setting the stage for a turn-around and recovery in the price of gold.
Only now, having sold gold in the past couple of years, Western institutions may find it difficult to rebuild their gold ETF holdings without bidding gold prices to much higher levels because many of the buyers since 2011 — Chinese households or the Russian central bank, for example — have no interest whatsoever in selling . . . not now and not for many years or even decades to come. ...