The current year for the yellow metal was full of surprises. Gold survived both the rise in prices and small drops but always remained a reliable asset. Nothing could shake its position except the recent force majeure situation.
A fairly stable precious metals market was stirred up by the news that this week an unknown trader purchased a package of call options for gold with a strike of $ 4000 with expiration in June 2021. The amount of the shocking deal was around $ 1.75 million. According to analysts, profit from it is possible only if the precious metal price exceeds $ 4003.50 by the expiration date.
Experts are unaware that what could change so dramatically in the world for the yellow metal to start trading at such a crazy price. Some market participants suspect that someone expects the collapse of the dollar system and makes similar bets on gold in order to protect their capital.
Experts do not rule out a dizzying rally in the precious metals market when the price of gold goes to a new round and is many times higher than the current one. A number of gold options market players expect almost three times the rise in precious metals in a year and a half. However, the new deal exceeded all conceivable scenarios for the yellow metal.
The previous gold price record was set in the summer of 2011, which was eight years ago, the cost of precious metals did not reach the level of $ 2000 per ounce. This happened at a time when the US Federal Reserve was carrying out a program of asset purchases, the volume of which reached an impressive $ 2 trillion. Nothing like this happened again, and the price of the yellow metal did not go beyond the standard framework. Since the beginning of this year, gold has risen in price by 14%, but still remains 25% below record levels. The precious metal is currently trading between $ 1462– $ 1463 per ounce.
The market was agitated of buying expensive call options for gold due to the fact that no one relies on such rapid growth. If such a fantastic scenario is realized, the world of finance and precious metals will be turned upside down, analysts are sure. In a world where gold will cost more than $ 4,000, the US dollar will lose its status as the world’s leading currency. Experts believe that the player who bets on a possible collapse of the dollar system admits the likelihood of such a development. In such a situation, one can only wait in which direction the vector of the precious metals market will go.