Gold Commercial Short Positions Hit All Time High, As Gold Spike Protection Team Keeps Very Busy

Tyler Durden's picture

In addition to the EUR data in today's CFTC Commitment of Traders report, another data point that caught our eye is the record exposure in outright commercial shorts in gold: this week they hit an all time high of 450,950. It appears that last week the desire to suppress any gold breakouts was at historic highs, even as net commercial exposure hit a 2010 low of -282.6, just slightly higher than that seen in the second week of January. If even with this massive onslaught to keep gold low by the LBMA, the precious metal managed to nearly hit $1,250 today, what will happen to gold when the 450k commercial positions are forced to cover?

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beastie's picture

Dear JPM etc.

If I can put in a request for 1100 per oz next week that would be great. Thanks in advance.


sheeple's picture

+1 LOL

How ironic, gold bulls want gold price to go down (understandably so because any sane minded would buy the dips)

living on the edge's picture

I am long gold and buying more when possible so I do appreciate the dips provided by JPM. In fact one more major take down would be just about right for me.

This being said, once we have all tapped out our buying where do we go from here Costa Rica?


Conrad Murray's picture

PMs, guns, ammo, food and shelter.  Once the necessities are secured, physical and mental condition are to be improved.  Read the Constitution and Declaration of Independence (get a pocket version to carry around, or 100 to pass out), Human Action, The Road to Serfdom, The Discourse of Voluntary Servitude, The Law, etc.  If SHTF, we'll need capable leaders, or at the very least, people who know what they are fighting for.

Really, there's not much downside to this plan.  Suppose everything smooths over and we go back to great productivity and wealth creation.  You've got guns and ammo to play with, food to eat, and land to enjoy.  Not to mention you're educated and in great physical shape.

Híppos Purrós's picture

That's a deliciously pragmatic and balanced point of view, Conrad.  Kudos!

Apostate's picture

Nah, do not hand out guns to people who are untrained.

There are veterans of the Iraq war that have literally killed thousands of people in close combat. You do not want to go face-to-face with a room-breaching pointman. You never, ever want to face a Ranger, SEAL, or hardened Marine veteran.

It's irresponsible. Don't turn your town into Fallujah.

Jack H Barnes's picture

That is why they are included by any Capt worth his salt who is preparing for the breakdown.  Life is more than just gold, guns & girls.

A well rounded "Free Company" is formed out of people who already have experience you need. Its about the survival of the "company", which is built on the skill sets each member bring to the event . A Free company needs more than just experienced trigger pullers.  Those are easily found.

a skill check list includes:

Doctor, Lawyer, Dentist, RN Nurse, (fixed wing multi engine) Pilot, Helo Pilot, Farmer, Rancher, Hunter, Fisherman, General Contractor, Plumber, Electriction, Cook, a Miner, an Armorer, a Black Smith, an Accountant, lots of Combat Vets... you get the idea.

What this place doesnt talk about is the kind of transportation/shelter plans you have.  Ie a small group of RVs might not be noticed, but can transport a platoon of troups.  RVs make great mobile camps.  A couple of full sized SUV with heavy duty tow hitches.  Winches on all rigs.  encrypted communications between units.  Its more then having combat troups and hiding out at the magical hidden cabin.  If your going to survive you have to be able to provide a lifestyle worth living.

WaterWings's picture

What about a Spanish teacher?

pan-the-ist's picture

You forgot the egomaniac who runs the group.

Fedup's picture

And the lawyer to defend you on the criminal charges when the FBI and BATF arrests you...

Fedup's picture

Which I assume is different from the lawyer who helps organize the group... they can form a law firm of two.

THE DORK OF CORK's picture

Don't forget the token Dork - it would not be a proper action / adventure flick without a dumb sidekick to pass off humorous remarks to trivialise violence and so make it acceptable to a family audience.

WaterWings's picture

For what? Flag waving?

trav7777's picture

Guns & ammo - virtually useless.

Hasn't worked in any collapsed society anywhere.  Good to have one or two pistols maybe a rifle, but beyond that a complete waste of time except to sell to people who own none.

Shit is not going to hit the fan like a zombie apocalypse.  It never has anywhere. 

tmosley's picture

Ever hear of the fall of Rome?

Marc45's picture

Dude get serious.  If it comes down to food, water and guns, things will be a lot worse than you can imagine.  Martial law will rule and the man will take your stuff with much bigger guns.


Conrad Murray's picture

You're right.  We should all just carry on as is, spending into oblivion with money we have never, nor will ever have, created the wealth to back it.  What sense is there in having a fighting chance when it is inevitable we will all just role over to our masters, as we've been conditioned to do?  Good luck in life.

Hughe Crapper's picture


If JPM want people to stop buying gold, they should go long for the full amount in Fort Knox. End of...

This shorting is just silly. Never experienced a primary dealer selling the gold of the state in a short sale. ;)


Steaming_Wookie_Doo's picture

Will you be wanting the bars with or without tungsten? Oh, we're out of the "without" ones...

Problem Is's picture


FAQ: "Will I get gold bars with or without tungsten?"
JPM Gold Order Express strives for the satisfaction of every customer on every gold and paper gold transaction.

Physical gold orders are selected at random from gold in inventory. Typical "alloy" (tungsten) bars are 88% likely in any order.**

**The actual physical delivery of gold instead of a JPM "Jamie Dimon Special Club Members" Certificates of Guarantee "We Have Your Gold" are next to zero.

FAQ: "I dropped my JPM gold bar on my granite counter top and dented the counter. Does that mean my bar is tungsten?"...

snowdude's picture

I think that means your counter top is probably not granite;-)

thesapein's picture

Even crazier when the state itself tries to fix a low value by actually printing low values right on the coins! Talk about marketing your product down. Things are upside down.

aaronvelasquez's picture

A fifty dollar gold eagle and a one dollar silver eagle imply something around a twenty-to-one devaluation if one were to use the coins as currency.  Bob Chapman seems to expect a formal devaluation of the dollar this year.

Maybe it won't be the "Amero," it will be the "Eagle."

TheGoodDoctor's picture

@aaron. Sent an e-mail to Bob Chapman last weekend. He said he expects the devaluation to occur next year in 2011.

snowdude's picture

How would you officially devalue a floating currency?  If it's pegged to a standard, like the dollar was in the early 1930s or like the yuan is now, then it's easy.  You just declare a new peg and then try to defend it.  Since it floats today, I would think it will only devalue when the world has lost confidence.  Lately it's been going up as people flee the flagging euro.  Where will the dollar go in 2011 if we get a full euro-flop?

Honest_Money's picture

Don't mistake the dollar going up versus the Euro with a strong dollar.  The dollar is going down versus gold, the world's real currency.

All_In's picture

Yes, but it helps when leaving the country and having to claim the metal in your pocket is less than $10, the $50 amount printed on the 1oz Gold coin I can have 200 ounces without having to declare...  :^)

BobPaulson's picture

Declare?  Not me man. I buy mine with post office money orders or cash.

Oracle of Kypseli's picture

Can you take it across the border if you have more than 8 coins without declaration?

FEDbuster's picture

Legal tender of a one oz Eagle is $50. limit 200.  The trick would be flying with 200 Eagles (15 lbs worth)getting them through the TSA without raising some red flags.

johnnyBoy's picture

I think gold doesn't register.  My rolex goes through everytime without a peep from the sensors.  OH-OH.  Just gave a tip to the terrorists of the world..a solid gold gun with solid gold bullets.  I am sure it is already on the drawing board.

RhoRhoRhoBoat's picture

wasnt this part of the James Bond movie Goldfinger?

LiquidBrick's picture

a solid gold gun with solid gold bullets.  I am sure it is already on the drawing board.

But it would only be able to fire one bullet because it will warp, bend and destroy the chamber. Gold is ameable.




akak's picture

Actually, the Treasury, US Customs and the Minimum Wage Gestapo, er TSA, all officially claim and consider gold to be a "non-monetary instrument", so legally at least, you can travel with ANY quantity of it and without having to declare it.  Legally --- in practice, I don't know what might happen with the TSA goons, but they can not legally prevent an American from travelling with it or having to declare it.

DoChenRollingBearing's picture

If it's over $10,000 in anything liquid or cash-like, I think you DO have to declare it when taking it out of the USA.

I also recently read that TSA is not supposed to harrass travelers (!) who are not a threat.

Check with your lawyer before taking $10,000 + in gold undeclared out of the USA.

akak's picture


No, I have researched this topic at length, and was as surprised as you are now!

You are correct about cash and other "monetary instruments", but gold is explicity defined by the US Treasury and US Customs as a "non-monetary instrument", so legally, you could carry $1,000,000 in gold onto a plane with no hassle at all.  Again, that is LEGALLY --- in practice, I have never traveled with gold, and do not know how one might or might not be treated by the TSA if they did so.

Believe me, I was as skeptical as you are, and I wouldn't expect you to take my word for it, but that is the case.  Since they officially do not consider gold, or diamonds, or platinum to be monetary assets, they cannot turn around at the border and treat it like one.  But I wonder how much longer it will be before this freedom is taken away from us, in the name of "fighting terrorism" or "national security" or "anti-money laundering" or whatever convenient bullshit excuse the statists will use --- and you know they eventually  will.

GoinFawr's picture

Uh you might want to check this case out first. Seems to me there might be a double speak standard when it comes to the actual value of a PM coin, and its value as legal tender.


Its a payroll case, not a border crossing case, but there are some definite similairities.


Excerpt: "It's not whether what Mr. Kahre did was legal under the law," defense attorney Michael Kennedy told the jury in his opening statement. "It's whether he believed what he did was legal," in the absence of explicit instructions by the IRS -- on its Web site, in its publications or in response to written correspondence from Kahre -- on how to value post-1985 gold or silver coins."

Translation: If you think you're trying to get away with something, you will be *busted for it whether it is legal or not.


*Unless you're a massive bank with former/hopeful employees firmly entrenched in a nation's governing body; barring Iceland's. (sorry, I couldn't resist the addition.)



akak's picture


Yes, I am aware of that payroll case.

In that instance, it was a matter of payroll taxes and the IRS ---- entirely different from the border-crossing situation.

GoinFawr's picture

MB, but I'd still get some legal counsel before a full-on attempt.

Dburn's picture

Best of luck getting a written opinion. In my experience , getting legal opinions make pulling chicken teeth like pulling on candy from a pez container

If there are no  black letter statutes or rules that they can refer too, you get "on the one hand..." along with a string of mixed Metaphors which only serves to confuse you more and costs money that would not be considered  an insubstantial amount (double Negatives too)  unless of course it's John Yoo and you wanted a opinion on frying or boiling testicles.

steve from virginia's picture

It will soon be difficult/impossible to take gold out of the country by 'normal' transport (air, sea, shipping container, etc.) unless part of 'transaction' relating to finance: that is by an investment bank. 'Capital controls'.

 - Right this minute, gold is more liquid than currency. A hundred thousnd dollars in gold is a small amount. Try to get a hundred thousand in currency from a bank! It's easier to pull teeth from a charging rhino. This is when physical gold is supposed to be difficult to obtain in the Eurozone due to the onrushing panic.

GoinFawr's picture

Right this minute, gold is more liquid than currency. A hundred thousnd dollars in gold is a small amount

Most excellent point, minus the 'right this minute'. Strikes directly to the face of the 'but you can't buy groceries with gold' crowd. Who are partly right, if you only shop at the 'Food Flood' where the average clerk probably can't even spell 'specie'. But I'd wager a small gold coin would take you far at a farmer's market, or at your locally owned grocer possessing a modicum of saavy.

And contrary to all the Dollar Bulls loud and ubiquitous assertions, the entire world does-not/will-not value the USD as the currency that is 'as good as gold'. Not when you want to purchase a hard asset like arable land, anyway:


"The other major difference in the buying process in Vietnam is that all transactions are carried out in pure gold. While this seems like a quirky and antiquated system (To duped FIAT slaves-Ed.), it means that any buyer in Vietnam needs to keep a very close eye on the cost of metals for the best time to buy, as the fluctuating markets could make your property suddenly much more expensive."

Barbarous relic indeed.

Eur goes down first, sure, but guess who's next on the list once that foil is gone. Hell, I love my PM's, though if I had no choice but a FIAT, once this happens I'd be all over the DM.





FEDbuster's picture

I love it.  The Constitution states the only money shall be minted in gold and silver, now the feds say gold and silver are "non-monetary instruments".  War is peace, 2+2=5, etc....

Sabremesh's picture

A gold bar may be a "non-monetary" instrument, but Gold or Silver eagles are US legal tender coins so are most definitely "monetary" in nature. However, their monetary value is the face value, not their bullion value. Krugerrands and other foreign bullion coins may not be regarded as being monetary instruments, I don't know.


PaperWillBurn's picture

If the Treasury values gold at $42.22 and ounce then so do I. Bring a print out with you from a government site stating the value of your gold.

Good To Great's picture

At this point in time I can't image why one wouldn't just travel to the destination and then buy the gold there. Or real estate, etc. If the time comes when it's necessary to actually get the metal out of this country in an emergency it won' be possible to carry it, no matter what the rules are now.

tmosley's picture

You can't carry cash out of the country either.  You will have problems no matter what you do.

And that is prior to a currency collapse!

silvertrain's picture

This guy is right..A man was arrested about 3 weeks ago in mexico for carrying 150 gold coins across the border..

 google     man arrested in mexico with 150 gold coins   it will turn up alot of hits, it was all over the news...

dark pools of soros's picture

its only 200 coins..  put them in a poker case or something