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The Four Big Banks Are Going Against The Gold &Nbsp; Experts Say They Are Hedging Plates.

2011/8/27 11:25:00 32

The Four Big Banks Are Going Against Gold.

In Europe and America

debt

With multiple factors such as the crisis superimposed, the price of gold has been rising unilaterally since July.

Just when market participants exclaimed that "silly money" had already entered the gold market, the four banks went against the trend in the futures market.

Short

Gold.

Societe Generale, Minsheng Bank, Agricultural Bank and Shanghai Pudong Development Bank occupy the top five of the Shanghai futures exchange's gold futures shorting camp. Its short selling behavior is alleged to be "too unreasonable". Insiders pointed out that the banks choose to sell gold in the futures market to a large extent.

hedging

Value preservation.

Reporters from the Shanghai futures exchange gold futures positions rankings found that as of yesterday's closing, Societe Generale, Minsheng Bank, agricultural bank, Shanghai Pudong Development Bank all entered the Shanghai Gold 1112 contract, the top ten empty positions, four banks occupied four seats in the top five of the empty camp, with a total of 8050 positions, with the closing price of the day 380.5 yuan / gram, four banks together hold the total value of the empty list more than 3 billion yuan.

It is worth mentioning that just yesterday, Societe Generale and Agricultural Bank once again increased the short positions, the industrial bank increased 566 hands, while the Agricultural Bank increased 260 hands.

Earlier, Societe Generale staff have said that holding a large number of short positions in Shanghai gold is due to operational strategy considerations.

In the industry view, in the golden bull market, four banks are steadfast in their short selling behavior, or some "abnormal".

Yuan Lin, a gold analyst and three and general manager of Jinxin, told the Beijing Morning Post reporter that the short selling of the four banks was largely aimed at hedging against other market positions.

Yuan Lin said that the Agricultural Bank of China and other paper gold business developed well, these banks have substantial physical gold, under this premise, the four banks are still short of gold in the futures market, "the biggest possibility is to hedge."

"Futures market is normal, but as far as I know, Minsheng Bank also optimistic about gold prices to $2000 at the beginning of the year."

He Qiang, director of the securities and Futures Research Institute of Central University of Finance and Economics, told the Beijing Morning Post reporter.

To be sure, since August

Gold

The continued high rise made four banks short in the futures market tasted bitter. The extent of their losses depended on their positions. Conservative estimates showed that the losses of the four banks amounted to tens of millions.

In fact, the rare super long unilateral rally of gold has made many futures investors "lose their money".

Yuan Lin told the Morning Post reporter that since the gold station stood at US $1600, many futures veterans joined the short camp in the light of past experience. With the price of gold rushing to $1900, these investors were later blown up or forced to liquidate.