Marshall Swing: MASSIVE Short Buying in Gold As Cartel Getting Very Ready to do Something Big!

Massive shortsWow, what a COT week!
In gold, we have MASSIVE short buying on the part of the producer merchant to the tune of almost 15,000 contracts short picked up. 

Notice the total commercials up almost 21,000 contracts short.  That means they are getting VERY READY to do something big!  [Read more...]

Gold To Rally Year End As Traders Close Some Of Record Short Positions

Gold has lost 25% of its value this year after 12 years of gains. There are credible allegations that the market was subject to price manipulation with banks manipulating prices lower through massive concentrated selling at times of low liquidity. Allegations that Chinese entities may be manipulating paper gold prices lower in order to buy physical gold on the cheap are gaining credence.
Whatever, the reasons for gold’s price fall it is a healthy development as it has led to the speculative hot money and weak hands being washed out of the market. Gold is on a much more sustainable footing now and is very much in strong hands now, which bodes well for gold in 2014 and 2015. [Read more...]

Alasdair Macleod: Record shorts fail to push gold to new lows

This week has seen a mighty struggle as the bears tried to push the gold price below the $1200 level. However on both occasions the price rallied strongly afterwards.
Both gold and silver paper markets are currently highly vulnerable to a bear squeeze. Silver has the added problem for the shorts that industrial users, who would have budgeted 2013′s cost of silver at over $30 last December have been buying futures to lock in windfall profits. At the same time with the gold price close to production costs, mine managers have sold gold forward into price rallies to avoid operational losses.
A few more trading sessions like this are likely to undermine the confidence that shorting gold is a good substitute for shorting bonds. [Read more...]

Jim Sinclair: Do Not Let the Shorts Cover With Your Gold!

sinclairLegendary gold trader Jim Sinclair sent an email alert to subscribers tonight, advising gold investors: As Gold and Gold shares rise from the lows, do not sell.  As the bottom of this reaction of the gold price sets in cement, please do not supply the shorts covering with your gold and good gold shares.

Sinclair states that Gresham’s Law is propelling gold back into an accepted monetary form, as the BRIC central banks attempt to accumulate 15% reserve balance in gold
The economic axiom known as Gresham’s Law is operating in the Central Banks of the BRICs whereby gold is being accumulated with a goal of 15% of the reserve balance. The goal of 15% of reserves are the currency gold, and gold’s ascent in the marketplace due to the effect of Gresham’s Law to an accepted monetary form.

Sinclair urges precious metals investors to sit tight and hold onto their gold through the coming volatility as gold breaks through $3,500 and $4,00 and heads to $4,990/oz.

Sinclair’s full alert is below: [Read more...]