King World News Confirms Goldman Sachs Has been Long Gold For Years, States $25.50 Is Silver Margin Call Threshold

Tyler Durden's picture

Some new perspectives on gold, and its very special relationship with Goldman Sachs, courtesy of a London-based King World News source. And some were wondering where Paulson got the long gold trade idea from.

King World News source out of London has confirmed that Goldman Sachs has been long gold for years.  The source stated, “Goldman Sachs has been getting long the metals for years.  Goldman Sachs has essentially been acting as their own central bank, buying on dips for years to hedge their currency positions which are being eroded through coordinated global money printing or currency debasement which they knew would take place.  They are long the metals as a hedge and as I said have been for many years.”

The London source also discussed the silver shorts:

“If silver holds for a few hours above $25.50, they (local traders who have been invited short) will just capitulate. You could see a $1 move in an hour if their is a race for the exits.  Above $25.50, the locals that are short will literally get margin calls and will have to exit their shorts and it could become disorderly on the upside.

The jaws are closing on these shorts.  The silver market is underpinned by everyone who is waiting in the wings to accumulate, that is why you saw the extraordinary buying yesterday off of the lows which continues in today’s trading.” (more here)

Silver is almost there.

Today's POMO, which will send stocks up above 2%, will likely push silver over.

Full King World News note here.

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Madcow's picture

If Goldman has been adding liquidity to the short side - and driving down price - and then accumulating physical - isn't that just blatant criminal activity ?

HelluvaEngineer's picture

You say that as if it matters.

NoBull1994's picture

SLV trading at a 2.2% discount to NAV.  I am long and getting longer...

No Bull

HelluvaEngineer's picture

I just bought a decent chunk of PSLV.  This is extremely bearish for the rest of you.

JohnG's picture

Same here, but a rather massive buy for me, 25K shares on the IPO.


DoChenRollingBearing's picture

No sweat guys re buying at a "high price".  I would guess that some 85% of my gold, silver and platinum were bought at or near the "highest price ever", then the prices continued going up.  Been that way for a long time for me.

I strongly prefer the physical real PMs in my own possession.  Has its own risks, yes.  But, I would rather have ounces in the hand vs. ounces in someone else's vault in Canada.

justbuygold's picture

I believe the better play is Central Fund's   " SILVER BULLION TRUST" .  Lower MER and Admin Fee and also better managed.'s picture

I am long and getting longer


If that continues for more than four hours you should consult a physician.

JLee2027's picture

SLV is for suckers.

No Bull either.

boricuadigm-shift's picture

Yesterday I bought SLV at $24.11 with one hand waiting to see the market.  Today I bought with two hands. 

HAve you guys noticed less available physical of both Silver/Gold in Apmex?

Put an extra order of gold/physical today.  I can't wait for it to go lower, if it ever does.

Buy with both hands!

Dr. Richard Head's picture

I have.  There is not available inventory for many 10 oz and kilo coins.  Don't know about bars though. 

DosZap's picture

100 oz bars is all that's 764+ .

Plenty of 10 oz IF you want to pay the premiums.

knukles's picture

If you're looking at inventory/good delivery as an indicator of future price movements and believe them to be falling, why in the world would one not own unencumbered allocated such as PSLV or PHYS? 
Just sayin', if real underlying delivery can't be made and all's changing hands is more non-deliverable paper.....

Hard1's picture

Not sure at what time you saw the 2% discount to NAV on SLV, but at close I calculate NAV at 8,545,376,257.58, based on 325,941,690 ounces and 26.2175 spot price.

the 8.5..bln divided by 333,300,000 shares outstanding yields a NAV of 25.64, which is very similar to current market price of the ETF (25.63)

DaveyJones's picture

quite the shock, all of this 


"blatant" Most commonly used for 'obvious', but also just an adjective used as a sentence enhancer - urban d    :/

BlackChicken's picture

isn't that just blatant criminal activity ?

No.  It is only a criminal event if one of us were to act like this.  If you are one of the cherished elite, this is just normal business.  Besides, the CFTC and other regulators are always on the lookout for suspicious activity, and if ANY of this were improper they would be all over it by now.

<Sarc> - off

dark pools of soros's picture

sounds like God's work to me...

DaveyJones's picture

you of course are referring to Dhumavati, the hindu god and smoky form of Shakti. The eternal widow with the black crow that symbolizes dark forces and black magic... 

High Plains Drifter's picture

It must be nice to be one of the ultimate insiders.

Dr. Acula's picture

>If Goldman has been adding liquidity to the short side - and driving down price - and then accumulating physical - isn't that just blatant criminal activity ?

Did they damage person or property? Did they defraud someone? Whom exactly do you think they victimized?

Note that damaging the subjective value (or objective exchange value) of someone's property is not the same as damaging the property itself. You may own property, but you cannot own other people' subjective appraisals of it. I cannot sue Ford for the drop in value of my buggy whip manufacturing business. By the same token, one cannot make home improvements and then sue his neighbors for the increase in their property values he caused.

I don't see how it is criminal to voluntarily enter into mutually agreed-upon trades. It is possible that Goldman Sachs is trading unwisely - but then the market would punish them with financial losses. If they trade wisely and speed the market toward equillibrium, then they will be rewarded with financial gains.


LowProfile's picture

Wait a minute...

Did you just compare a loss in buggy whip sales to manipulating the metals market?


tamboo's picture

rare earths bitchez

DoChenRollingBearing's picture

tamboo, rare earths may be a bit of a bubble now.  I have been trying to get a handle on the uses, producers and processors / refiners of rare earth metals.  I recently read that by about 2013 or so that there will be more non-Chinese production that will fill the demand.

I am always interested to hear ZH commentary from knowledgeable people re the rare earths.  But, many of the miners (MCP, LYSCF, AVARF, GWMGF) have had a big run.  Are any of them making money?

stopthenewworldorder's picture

Hola. Am having a pop at a new IPO called Frontier Rare Earths - suggest you look it up.  It is indeed a market with little or no proper fundamentals and rare earths are in typical Orwellian fashion not rare in the slightest.  Having said all that it appears to be a strategic market for the time being and plays into trade wars etc which is wonderfully pertinent.  As such i think Rare Earths have legs for the time being but its more a trade than a hold.

MGA_1's picture

And perhaps onwards to $50/ounce...

CashCowEquity's picture

Hiyo "Silver" Away !!!

MGA_1's picture

Don't worry, we have it all under control !

- The FED

johnnymustardseed's picture

My excitement for the upside is tempered with the knowledge that those without will do bad things to aquire what they can not afford

cossack55's picture

See the story of the guy who had 7000 ASEs stolen from his house in Wisconsin.  Roughly 500 lbs of silver.

chinaguy's picture

You a fool to store that amount of physical in your home & not have some way to protect it.


cossack55's picture

Of course. "A fool and his silver are soon parted"

chinaguy's picture

We just blew through $25.50 - Lets taste this pudding.

dark pools of soros's picture

it should fly...  just did my refi so i get a taste of skipping a payment during the switchover..  hmm  what to do with that cash?? 

I already have coins and 1oz bars...  might go for the 10oz'ers

wafflehead's picture

sell the news bitchez

dehdhed's picture

bear trap yesterday ... squeeze ya later dudes

goldmiddelfinger's picture

Someone at Goldman Sachs uses the word "their" when the word properly is "there"?

"..if their is a race .."

hedgeless_horseman's picture

King World News Confirms Goldman Sachs Has been Long Gold For Years

I missed the confims part of the article.  Where is that again?

goldmiddelfinger's picture

"King World News source out of London confirms .."

He'll be back Monday

goldmiddelfinger's picture

"they (local traders who have been invited short) will just capitulate"


Who "invited" them to get short? That wasn't nice.

goldmiddelfinger's picture

"they.. will just capitulate."

Guess it the "just" part that squarely defines the action to come.

hedgeless_horseman's picture

Tyler is just feeding the headline-reading algos.

Common_Cents22's picture

Re-read the article,  You missed this line:

"Blue Horseshoe loves Anacott Silver."

Kaiser Sousa's picture

"and so ended the reign of the manufacturers and purveyors of worhless paper fraudulently presented to humankind as money" 

The End...

"fuck a banker"

FISD's picture

Whether the train leaves today, the next or sometime after that, this family is all onboard and our luggage is on our laps. We're as ready as we can be.

H. Perowne's picture

Oooh, the vampire squid found something shiny! But it can't eat it . . . everyone says so. Then why does it want to keep it?