---
title: "Huge Bets That Gold Could Triple to $4,000 Trade in New York"
description: "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."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2019-11-27-huge-bets-that-gold-could-triple-to-4000-trade-in-new-york/"
published: "2019-11-27T22:01:47"
lang: "en-ZA"
word_count: 162
---

# Huge Bets That Gold Could Triple to $4,000 Trade in New York

> 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.

By Bloomberg · Published 28 November 2019, 00:01 SAST

## Content

Around noon in New York, 5,000 lots for 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.

Gold futures climbed to a record $1,923.70 an ounce in 2011 as the Federal Reserve bought over $2 trillion of debt to stimulate the U.S. economy. While bullion has rallied 14% this year, the precious metal is still 24% below the current all-time high.

The metal, which traded at $1,462.50 an ounce at 12:57 p.m. in New York, will need to almost triple to make the call options profitable for its holder.