Bob Elliott
· Nonconsensus
· February 11, 2026 at 11:05
· ⏱ 2 min read
| Read on Substack ↗
Summary
=== SUMMARY ===
•The author argues that the recent speculative "mania" in gold, driven by retail and Chinese buyers, has subsided, creating a favorable entry point for new longs.
•Key short-term indicators such as ETF flows, Chinese premiums, futures positioning, and options volatility have all normalized, suggesting the market has washed out the froth and found a sustainable bottom.
Summary
The author argues that the recent speculative mania and subsequent washout in the gold market have passed. Given a policy environment that continues to favor currency debasement and now-subdued speculative flows, the author sees a clear opportunity to buy gold.
•The late January mania and early February washout in metals markets have largely resolved.
•The macroeconomic policy environment remains favorable for gold due to debasement trends.
•Short-term speculative flows, which previously drove froth, are now subdued.
•The author concludes that it is a clear time to buy gold.
Read time2 min
Length2,812 chars
Categoryfinance
Trade Ideas
Bob ElliottCEO & CIO, Unlimited; ex-Investment Committee, Bridgewater
The author believes that after a recent speculative washout, the underlying bullish factors for gold, such as currency debasement, make it an attractive long position.