“Stay thirsty my friends” AND start building your dry powder (physical precious metals) from your paper investments cause they ain’t going to be around much longer…
This past reporting period we saw a very rapid decline followed by an equally impressive “rally”. It is my firm belief that the decline was due to serious shorting by the speculators and it is not yet the time-frame the bullion banks desire for an all out price smash, so they quickly manipulated the strings, let go of some lower priced contracts and price popped up again to exactly where they wanted it. They appear to me to be interested in a very slow decline producing depression in the metals, not the schizophrenia of price instability.
If the metals crashed too quickly, it would spoil the long range plans of the elite and cause a panic before its planned time.
In gold, we have three solid weeks of long buying by the overall commercials with short selloffs on 4/8 and 4/15 and heavy purchases of longs and shorts on 4/22. On 4/15 we see phenomenal short positions taken by the large specs and the small specs. That is exactly what the bullion banks want. This is a setup.
There was a definite attempt last week by the cartel to dislodge the speculator shorts and cheat the people out of the notion of profiting from their intended plunge in metal prices.
In Silver we did not see much dramatic action.
BUT, what is not so dramatic in silver IS dramatic in gold.
In gold we saw a reduction in total open interest of almost 35,000 contracts! That is almost 7,000,000 (yes you read it right) 7 MILLION ounces!
Notice the commercials have the lion’s share of open interest reduction, because if we add up the speculators reductions and additions, we see they are not quite a wash but absolutely MASSIVE open interest reductions on the part of the commercials. To what end? Just to drop the gold price a little? I don’t think so.
In silver, we see the large specs latching onto a huge number of shorts. So, price is going down and the specs are buying shorts? What is up with that?
Remember that I mentioned this last week as well and on the surface we see almost 9,500 shorts they have scarfed up in the last two reporting periods. My guess, from hindsight of years of course, is those shorts are not going to be allowed to stand so there will probably be a rally in the metals price to dislodge those shorts before resumption of the downward price target by the commercials.
Wow, 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!
Well, SD readers, we have gotten a mild price attack on the metals but nothing as severe as what I think is to come.
Notice, despite the commercials discarding large open interest contracts in both shorts and longs they even deepened their total open interest net short position and are very close to 200,000,000 net ounces short.
My calculations say they can crash silver price to $15 if that is their target.
The gold producer merchant went from over 550,000 net long ounces to last week being almost 1.25 million net short ounces.
It marked the end of a relatively long period where they were net long and many commentators mistakenly predicting it would be the blast off for precious metal prices. The gold producer merchant moved down to 843,000 net short ounces this week. They seem comfortable being back to their long term short game, but for how long? Can they play this game forever?
With the huge spikes we saw on Thursday after the COT week that the producer merchant bought huge shorts and the specs huge longs thinking a bottom is in or near.
Another big week for massive open interest changes almost like two weeks ago except this week gold open interest was downsized big-time.
In silver, price started at 18.85 and ended about 19.55 Commercials added almost as many longs as they sold shorts so they remain net short 105 million oz in silver!
This week in silver, almost 5,000 new contracts entered the race and the vast majority of new action was in the commercials, specifically the swap dealers. Large specs were virtually silent and the small specs overall reduced their open interest positions significantly.
In gold, almost 32,500 additional contracts were added to total open interest and the disaggregated numbers reveals the producer merchant had the lion’s share of the action by a more than 5 to 1 margin over the swap dealers!
Think about what is going on behind the scenes: