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Shorting September will be like holding a lit stick of dynamite
Bill,
In another bizarro moment yesterday’s gold preliminary open showed an increase of 24,192, but the final OI shrunk to +7,321. Also odd was the EFP’s coming in at an even 10,000 contracts, of which 9,053 were in the Dec. contract. The cartel has now added 40,697 contracts in just the past 4 trading days, not counting the additional monstrous EFP’s. During that time gold went up $29.00, or just under 2%. We can only speculate as to how high gold would have risen without the onslaught of cartel shorts. I’d say +$150-$200 would be for starters. Odd too that yesterday’s preliminary OI showed a very large portion of the increase was in the October contract, but when the final OI was published it ALL just went away.
The silver shorts are still present, but FAR more timid than gold. Since May 28 silver has risen over $4, from $14.51 to $18.60 basis December, with total silver open interest also having risen by 22,000 contracts. Translated the silver shorts are now offsides to the tune of approx. $4.8 billion dollars. Gold in the same time has went up $260, with shorts adding a whopping 128,000 contracts. Gold shorts are now offsides by approx. $16.5 billion. That’s a combined $21.3 billion hit to precious metal short positions. Granted the shorts no doubt had profits rolling back on May 28 so some of the losses are essentially givebacks, and COT changes would allow for some exiting of positions. Nonetheless this is still significant damage which only deep pocket banksters could take on. What other short could be on the wrong end of a 20-30% move higher and not only NOT cover, but keep ADDING to their positions? Only one with “the full faith and credit”…… along with the CTRL-P button.
Rate cuts, QEmore, NIRPfest, inverted yield curves, and a Dow not pricing in anything other than going higher. THAT’s the perfect environment for precious metals. We might eventually get a pullback. Will the pullback get bought? You betcha. Shorting September will be like holding a lit stick of dynamite.
James Mc
Intriguing input from James, as usual. Right on the money as to why gold and silver ought to be on fire in September.
You have to wonder if The Gold Cartel forces are ever going to cover their shorts, and if they do, who will be the sellers? In terms of their massive losses at the moment think about what they made time and time again these past years, flushing out spec longs over and over and over.
The gold price suppression scheme has always been a US operation, which is one reason why gold in dollars is not in all-time high ground. Compared to other financial markets, gold and silver are tiny. But how much money is The Gold Cartel willing to lose in these markets right now to maintain financial stability, to their way of thinking? Clearly, our long awaited Tipping Point has been reached in which THEY can no longer get away with their manipulation as in the past.
There has been endless talk about the Chinese and gold for eons now. One thing is clear, if the Chinese want to create some chaos for the US, they can utilize their own cabal forces to buy up the precious metals physical markets (probably have been) to help put pressure on the US trade situation. Wouldn’t surprise our camp if they aren’t the ones who changed the silver picture.
The gold/silver ratio has now fallen close to 84. If it takes out 80, watch out below.
As the day came to a conclusion on the Comex, gold cut its losses substantially and silver put in an impressive gain. This constructive action occurred with the fear trade gone, as the DOW was up over 200, and the dollar was higher.
Good stuff for our camp. The bums really have a problem.
James Mc in with a post Comex close comment…
While today broke the string of rallies during NY trading hours it still wound up being not too shabby. Silver held strong, and gold recovered nicely. Silver volume approaching 200k again so it’s definitely in play.
I still wonder if the silver strength is due to one specific entity such as Deutsche who is trying to unwind a monster short before the real SHTF.
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