Bold bets that Gold could triple to $4,000 trade in New York

THE PRICE of gold is primarily a measure of faith in central banks. The gold options market saw $1.75 million in block trades betting the precious metal could almost triple in more than a year. Supplied
INTERNATIONAL – The gold options market saw $1.75 million in block trades betting the precious metal could almost triple in more than a year, surpassing the record.
Around noon in New York Wednesday, 5,000 lots of a gold option giving the holder the right to buy the precious metal at $4,000 an ounce in June 2021 changed hands. The bets were sold at $3.50 an ounce.
“It’s like 18-month term life insurance; what will the world look like if gold is at $4,000,” Tai Wong, the head of metals derivatives trading at BMO Capital Markets, said in an email. “They are hoping for a quick violent move,” he said, referring to the people who bought the call options.

Source: iol.co.za