Authored by Mike Shedlock via MishTalk,

An unknown person or hedge fund bought 5,000 options on gold hitting $4,000 an ounce by June 2021.

On Wednesday, an unknown buyer made a $1.75 Million Options Bet That Gold Would Triple to $4,000.

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.