Gold & Silver COT’s: This is a Setup!

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.


Gold & Silver COT Report by Marshall Swing:

My apologies to anyone looking for my report last week as I was away from the Southern Illinois Wilderness and in Charlotte, NC visiting friends and family and time traveling did not allow a full synopsis.

 

A lot happened in the last two weeks, but anyone who reads these reports regularly knows my predictions are right on schedule as almost no one believed when silver was $22ish that we would be well around $19.50 at this time.  Almost all the other prognosticators predicted metals surging ahead but most of them read tea leaves whereas I have developed methods to understand the numbers we see in the COT.

 

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Of course, no one believed when silver was $36 and I said it was headed for $18 and below either…

 

Just simple math and observational assumptions based on experience over time.

 

Just like an artist paints a canvass, the numbers speak volumes to those who observe them often and over time.  You start to see patterns!

 

In silver, the report of 4/8 saw significant increases in both longs and shorts in the commercials but 4/15 saw unbridled long buying by those bullion-meisters and this past week saw them sell off relatively equal numbers of each.  This past week was a selloff in general by all players but nothing overly dramatic, yet price dropped as I predicted it would.  It is important to understand that price can rise or fall in a selloff, I have shown that previously.  Price can decline in significant buying and I have shown that as well.  Sentiment rules but manipulation is KING.

 

Precious metals is not merely a puppet’s games on strings.  It is on two sets of strings.  One of the sets is from above like we see in puppet dioll shows but the bullion-meisters also have strings coming up from below 😉  One way to think of this is in a futures contract for every long there exist a short.  Price can move when high priced contracts are sold and that drops price or when low priced contracts are sold and that could up price somewhat.

 

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 timeframe 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.

 

To some, a rapid decline followed by what appears to be resiliency upwards indicates strength.  That is not the case, I am sure.  If the metals crashed too quickly, it would spoil the long range plans of the elite and cause a panic before its planned time.

 

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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.  I have said repeatedly this is a setup.

 

However, it is intended to be a setup that I believe will take some time to play out, therefore, we could see several spikes to the upside in order to extricate money from those speculators forced to abandon their shorts but they will be enticed to purchase them again later.  The other possibility is sell in May and go away and the doldrums of the trade winds set in and we languish in price stagnation.

 

I see nothing amiss in Martin Armstrong’s prediction of rising DOW and falling metals.  Capital flows will come home to the West into equities and bonds and the rest of the world deteriorates and world tensions will rise heading towards September 2015 just as Armstrong predicts.  My opinion is the low in the metals is reached ahead of that date and a slight rebound starts and then the bonds and equities crash off the high cliff as currencies around the world are trashed into oblivion and there has to be political change to make the pain go away and maybe the hero Obama is rewarded with the unthinkable third term when he delivers the world from the financial brink?

 

One thing you cannot miss in the gold tables this week is the week of 4/8 the Swap Dealers cashed in on some high priced shorts and made a TON of money!

 

So did the Producer Merchant the week of 4/15…

 

Then the large spec did likewise this past period but did they make any money or were those shorts covered when the price rebounded upwards?

 

But notice over 7.5 million short ounces by the Swap Dealer!  We can stay at these low prices, and lower, for a long time to come.

 

Puppets on strings from above and BELOW.

 

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