Submitted by SD Contributor Marshall Swing

GOLD COT REPORT 6/1/12

Commercials sacrificed -2,542 longs in order to cover -7,431 shorts to end the week with 56.09% of all open interest almost .8% higher than last week, and now stand as a group at -13,070,900 ounces net short, another huge decrease of over 500,000 ounces net short from the previous week.  None of the speculators seem to comprehend what these criminals are up to in their strategy to get out of net short positions.

Submitted by SD Contributor Marshall Swing

Commercials picked up 1,270 longs and a smallish 382 shorts to end the week with 46.49% of all open interest, slightly higher than last week, and now stand as a group at -71,670,000 ounces net short, another huge decrease of over 500,000 ounces net short from the previous week.  None of the speculators seem to comprehend what these criminals are up to in their strategy to get out of net short positions.

The new film End of the Road has been released publicly.  End of the Road is a financial documentary chronicling the fiat experiment known as the US dollar, its its journey towards its intrinsic value: Zero.
The film features commentary from Eric Sprott, Mike Maloney, Jim Rickards, Jim Puplava, James Turk, & more.

*MUST WACH, & perhaps more importantly, this is a MUST SHARE with friends and family.

Full film can now be viewed below:

JP Morgan’s collateral issues just got worse.
The troubled bank reportedly has relented and will return $600 million in stolen MFGlobal client funds to the MFG trustee, 7 months after MFG’s bankruptcy.
While this is clearly a major victory for MF Global clients (including several SD readers who are still missing over $100,000 in their private accounts), what about the missing 1.4 million ounces of physical silver?

NEW YORK (AP) – JPMorgan Chase has returned about $600 million that was held at the bank when securities firm MF Global Holdings Ltd. failed last fall, according to a news report.

 Rob writes:

Doc,
Listen, everybody says “get out of fiat and buy PMs”.  And believe me, I get it. I really do get it.  Fiat is dead.  But nobody ever really tells you WHERE to store your PMs once you’ve gotten them — or else nobody can agree about it.
I’ve been researching this subject on the net for about a year now, and every method I read about seems to have serious flaws. So many arguments and counter-arguments.  They all sound pretty good and pretty bad.  The only one that i KNOW for sure is stupid is putting PMs in a U.S. safe deposit box.  I think I’m pretty intelligent, but the more research I do, the more bewildered I become.
What’s you’re take on this subject?
thanks.

The CFTC’s enforcement division has subpoenaed JP Morgan requesting emails and internal documents related to its derivatives losses.
Its looking like Harvey Organ was spot on, that JPMorgan’s losses are MUCH larger than publicly admitted, are actually interest rate swap losses, and that the regulators know the truth.
Plain vanilla $2 billion trading losses do not earn subpoenas from government enforcement divisions.

The legendary Jim Sinclair alerted email subscribers this afternoon that the financial system faces ‘the worst case economic and social scenario in 2012if the Fed does not announce Full QE by the end of June.
Sinclair states the Fed is playing a game of chicken that will end disastrously without immediate massive official stimulus.

Sinclair says this is what the Fed is risking unless MASSIVE QE is unleashed by The Fed before the end of June:

Martin Armstrong discusses the likelihood that commodities are currently putting in a major bottom and are preparing for a substantial rally in his latest update.
Armstrong is still looking for gold to explode to the upside into 2015 due to the Sovereign Debt Crisis, which could take gold and all commodities to unimaginable levels.

While Armstrong doesn’t see hyperinflation occurring in the US dollar (a complete collapse would occur prior to hyperinflation) and he does not believe the precious metals markets are being manipulated, he believes the massive tsunami that is the sovereign debt crisis will create the same result and end game for gold- albeit for different reasons than those of many of our readers.

What we face is a rise in prices due to the Sovereign Debt Crisis. All commodities will rise. This is inevitable.  Once capital begins to shift as it did in 1925 away from debt and toward the free markets, then we will see interest rates start to rise. As that takes place, the debt structure of government will explode.

Live 24 hours gold chart [Kitco Inc.]After a $50+ pop, one might have expected gold to correct off $1600 this morning, but the significant level only induced a brief pause in gold’s furious rally, as the metal has exploded another $20 to $1620.
Amazingly, gold has broken the cartel’s hard 2% cap on the day, up an astonishing 3.33%.  If our memory serves correctly the last time gold broke 2% to the upside on a single day was the last official QE announcement.
Silver is also spiking, now up nearly $2 from its recent lows to $28.75.

With Europe deteriorating by the hour, today’s absolutely atrocious NFP print opens the possibility for official QE3 as soon as this month’s FOMC meeting.   Clearly, gold and silver are anticipating imminent printing.

The US states are no different financially than the southern European nations affectionately known as the PIIGS.

Tuesday, Illinois House leadership attempted to rush through a vote on new pension reform legislation which had only been introduced that morning.
Representative Mike Bost threw a tirade that makes Nigel Farage speeches look tame in comparison, with Bost screaming ‘READ THE BILL‘, ‘LET MY PEOPLE GO‘, and literally throwing everything he could get his hands on.

MUST WATCH