Loading ...Bill,
While Ed Steer and others are noting the ominous buildup of commercial short positions in metals it’s worth putting just the past 6 trading days in perspective. In that time Comex gold open interest has increased by an unbelievable 92,955 contracts. That’s a 20% OI increase in less than 30 trading hours. Looking at it another way that’s 290 paper tons, a rate of almost 10 tons per hour which have been shorted. Shorts are getting added at a rate of 4,400 per $1 of gold rise, nearly 4 ½ times the normal cartel rate. Gold gained 92,955 contracts while only managing a paltry $21 gain. Clearly there is maniacal capping at these levels.
Silver is also being furiously capped, although the OI figures don’t show it. While the past 6 trading days for it show a net decline in OI of 4,567 it’s plain as day there is an iron lid at $17.25. No matter what the situation with silver’s OI the old definition of pornography applies equally to the rigging of both metals: I’ll know it when I see it. The cartel footprints are unmistakable.
We’ve been hearing about “one more flush of spec longs before the BIG rally” over and over but this may now truly be the situation. We’re still overbought, and the cartel has amassed their Armada at $1320 and $17.25. We’ll see how much oomph they have to take it down but it’s increasingly looking like the metals day in the sun is approaching. Without those 92,955 additional shorts gold would have already been $1500 and screaming. GOD knows what silver would be doing. What I wouldn’t give to know WHO decided $1320 & $17.25 was SO damn important, and WHY. It’s the silliest “resistance” I’ve ever seen, and I’ve seen a LOT of arbitrary cartel cap numbers.