Here are the likely profits taken by the commercials during the latest COT week: 2 Million ounces at $50 profit is a cool $100 MILLION profit. At $200 an ounce that is $400 MILLION profit. So there are the two ends of the spectrum, not a bad haul for a week.
Meanwhile, the speculators appear to suffer from delusions of grandeur aka greed. They are convinced price is still going down now and they are loading up for the fall (as the commercials covered 2 MILLION oz of gold shorts!).
They are seeking payments on their new hedge fund(ed) homes out on Long Island, I guess.
The speculators are not going to be rewarded unless they sell those shorts NOW.
And by the time this is read it may be too late…
Submitted by Marshall Swing:
Because of time constraints this will be a short report.
Pretty boring charts of the COT Week!
They say you can’t teach old dogs new tricks.
That certainly appears to hold true for speculators!
In silver, we see the speculators continue to add shorts while one half of the commercials initiate the downward spiral and the other half laps up the longs created in the frenzy. Large specs added almost 5,300 shorts, small specs almost 1,100. In the disaggregated COT we see, no surprise, the producer merchant adds almost 4,000 longs and the swap dealers profit greatly from a short covering raid.
Same old stuff, reap with the left hand and prepare to reap with the right hand. Might as well take out an ad in the Wall Street Journal and let them know what the commercials are doing!
I just told those speculators to sell their shorts but they are not listening. They appear to suffer from delusions of grandeur aka greed. They are convinced price is still going down now and they are loading up for the fall. They are seeking payments on their new hedge fund(ed) homes out on Long Island, I guess.
They are not going to be rewarded unless they sell those shorts now. And by the time this is read it may be too late…
In gold, we see sort of the same thing but there is far more going on than meets the eyes, initially.
We see the commercials colluding in short covering taking profits as an amazing pace as fast as they can get matches for their covers they are out of their shorts! They are taking massive profits (at the bottom)!
The producer merchant covered almost 6,000 shorts. The gold swap dealer covered almost 14,200 shorts. So, let’s see that’s around 20,000 covered contracts in 5 days or less, depending on the time they covered them. So that is roughly 2 MILLION ounces of gold covered at roughly $1250 an ounce for what how much an ounce profit? $50, $100, $150, $200 an ounce profit? See the third chart the 3 Month Gold chart. How high was the price of gold when those shorts sold in the COT period were taken initially? How much profit do they want but still retain the puppet strings on the spot price dummy, from above and below?
Here are the possibilities on profit taken by the commercials during the COT week: 2 Million ounces at $50 profit is a cool 100 MILLION profit. At $200 an ounce that is 400 MILLION profit. So there are the two ends of the spectrum, not a bad haul for a week.
And who said you have to have a truck to haul a bullion in a heist?
Lastly, look at the silver chart and the drop off you see after the COT week. Now look at the gold chart and see the drop off you don’t see after the COT week!
Of course my readers “have it”.
The gold drop has dwindled and the silver reaping by the commercials began and appears to be over now.
Get ready for a HFT volcano, kind of like the news we hear of the Mayon in the Philippines ready to blow its top! They have grabbed up longs after profiting from an obvious short covering price depressing REAPING.
Oh, and that 20,000 contracts at say $1350 an ounce?
Well, they just moved around $2.7 BILLION fake fiat dollars, computer bits with 1’s in them, for 3 months and made perhaps 11% profit. Who else does 11% in a quarter? Most have to earn their money. They are given it to them by the U.S. FED via us, the taxpayer. Well, the producer merchant anyways, as far as we know.
Reporting from the Wilderness of Southern Illinois (buy physical silver under $18 NOW),