JPM is now NET LONG Comex gold futures to the point of having cornered the paper gold market. Since, for now, paper Comex trading continues to determine global price, nothing could be more important.
As we’ve documented here since last July, in 2013 JPM has successfully converted what had been a massive NET SHORT Comex gold position into an equally massive NET LONG Comex gold position.
Thus far, through just the first four delivery days, the JPM House Account has stopped 1,011 of the total 1,086 deliveries made. That’s 93.1%! So, please follow along with me here:
- JPM is NET LONG to the point of cornering gold futures
- JPM is taking delivery of 93% of the December contracts
- Unlike the past, it now clearly benefits and profits JPM to see price rise- do you seriously think gold is headed lower from here?
Therefore, remain patient and diligent. Watch for a turn in price off of the June lows. A December move back above $1250 in gold and $21 in silver will begin the process of Spec unwind and short squeeze, setting up a continued rally in January. By holding physical precious metal, you are protecting and insulating yourself against the certain global economic madness of 2014 and beyond.