JP MorganIn gold, the latest COT report indicates that swap dealers are reaffirming their intent that gold will crash and they will reap an ABSOLUTELY HUGE windfall from paper delights (soon to be currency of the past). 
The commercials both increased their total net short ounces and those swap dealers are now OVER 8,000,000 gold short ounces! 
They see the kill in the not too distant future, they taste the blood that is not yet extracted from their victims.  They are a bloodthirsty lot, indeed.

Jamie DimonThis 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.

silver smashThe disaggregated COT numbers reveal all the action last week was in the producer merchant, the evil bullion banks as we know them and “love” them (loathe them actually), and they added 5,960 longs and 7,018 shorts. 
The bullion banks are reaffirming their intention to massacre the metals price and they do this for no other reason than to encourage the speculators to purchase more shorts.  This is resulting in more and more commitment to the downside by the speculators who will be blamed for the crash to come!

silver smashThere 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.

cartel shortsIn 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. 

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! 

freefallWell, 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.

silver smashThe real story is in gold this past reporting period as the commercials added a MAMMOTH 21,432 short contracts to their overwhelming “ILLEGAL CORRUPT” short position and are now positioned to smash this market to oblivion.
In silver, we see the combined commercials approaching 200 MILLION short ounces now.  It would be nothing for them to start the high frequency trading casino wheels rolling and pound silver to below $18.
Again, in silver, we see an almost perfectly even distribution in the dis-aggregated numbers.  COLLUSION my friends, COLLUSION at its finest. 

silver crashExtremely interesting developments in the open interest in both gold and silver this week!!
In silver, we see the commercials going FAR more short and the large specs going far more long.  Really interesting is the price rise, yet the speculators, on the surface, are not buying up long contracts by the bucket  – but they covered so MANY short contracts that their net long position went skyrocketing upwards.  For the commercials part, both the producer merchant and the swap dealers added huge on the short side to the tune of over 12,000 new contracts total.
Notice the silver commercials added over 50 MILLION ounces net short!!
So, in my numbers world, with price rising, that tells me the commercials led the way and FORCED the speculators out of short positions.  Notice a very modest pickup of short contracts by the small specs.  Those guys know the top is near and they are getting ready to ride the rocket downhill as the commercials crash price in the coming days.
silver smashIn silver, it would appear to the casual observer that the commercials played their old games and started buying longs at the bottom, selling them at the top, then buying shorts as the speculators bought a few longs at the top.  First glance says the speculators were forced out of their shorts.
However, the real story is in gold as silver just reacted to what gold was doing.
This sustained rally might get smashed with a short covering as the banks cannot allow this speculator long buying to get out of hand.

no bottomThe 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.

Jamie DimonAnother 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!

SilverCOTThe small speculators are now net short in gold.  They sold off over 500 longs and added 1,152 shorts which is considerable for their small numbers. 
It seems to me they may be of the opinion the bullion banks are getting ready to take down gold.

Massive shortsIn gold we see that what all the headliner commentators thought were the bullion banks taking a big long position prior to the supposed blast off to the moon – in reality those bullion banks (producer merchant) have been packing on shorts right and left the last five weeks and have gone from just about 1.2 million ounces net long to a mere 311,000 ounces net long as of last Tuesday.  Those swap dealers are packing on the shorts this past reporting period as well adding just over 641,000 short ounces.
What does all this mean?
For the first time in a long time we have both houses of the commercials moving congruently to significantly larger short positions.  People, they are not taking those positions so they can report a loss…
Get ready for a price drop and back up the truck soon!