Two Gold Charts

Tyler Durden's picture

We have one simple question - does the following small drop (which we happen to have seen before) in Gold ETFs, which at least according to the mainstream media, has been responsible for the recent slide in the price of gold, appear to justify the absolute surge in gold futures and options short exposure as per the Commitment of Traders report, which for yet another week, saw the biggest net short positioning since 1999. And no, we are not really confused - as we said "according to the mainstream media"...




and the Bonus third chart - what happened the last time futures were so 'short'...


Charts: Bloomberg

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
nope-1004's picture

ETF's are the bankster management tool for the real thing.  100% fake.  COT is probably fudged too, like LIBOR.


SafelyGraze's picture

you can tell that it's *real* gold if it has the rfid chip embedded in it


cifo's picture

They don't call them "instruments" for nothing.

flacon's picture

One could microwave one's gold or heat it up to the point where microchips melt....I suppose..

AllThatGlitters's picture

There's a huge GLD ad on this page, LOL.  How's that for targeting?

I'll take the real thing.  OPM 1 oz bars are just $25 over spot: 

Buckaroo Banzai's picture

If you check the fine print of the bylaws of GLD, you'll see that a GLD holder with a position size over a particular threshold (IIRC over 10 million dollars) can liquidate their position in physical gold. This is a great way for buyers in size to get physical. Keep that in mind when you see a sudden big drop in physical gold holdings at GLD. Some rich guy just cashed out in physical.

Harbanger's picture

There's no getting around the need for physical Gold.  Countries are stocking up on it because they already know the role it will play in the new global currency.  That's good news for gold bugs.  There's a currency summit in China this september with the purpose of establishing an international mechanism to create this new global currency.

Currency Summit:

fockewulf190's picture

China will make the move to ursurp the dollar as the new world reserve currency, but only after the Great Reset. That is why they are buying as much phyzz as possible...and are keeping their trap shut as too how much they own. Once the dollar has imploded, they will re-introduce the renminbi as gold backed, and THEY will fix the price of gold to it. The US will be powerless to defend the dollar once it is forced to admit that it's claim of owning over 8000+ tons of gold has been a monsterous lie.

San Diego Gold Bug's picture

OPM 1oz gold bars are only $19.99/oz over spot with no minimums at

Junk silver is still tight and the premiums are still way above normal.

DaveyJones's picture

is fudge the new crime flavor?

SWCroaker's picture

But but but, they happened at the same time!   That *must* be the cause!   Causation/correlation <-- same word that old farts spell differently; pretty sure.

Edited to add: That bonus chart reminds me of the "decay" you get in the leveraged ETFs vs the index they track.  The shorts came off and the price of gold went up, but it stuck for the shorts and really didn't hold for gold.

Praetorian Guard's picture

Interesting, I believe metals will go higher. On a side note, its funny that my friends sig other got a job at the local PD after they went through a poly, hair, blood, and urine samples and other bullshit. I asked him why she doesn't apply at one of the big mines in the area (gold) as they are looking for accountants, and he tells me she wants security, and a pension, retirement, etc. I'm like, that shits gone for govt. (correct me if I am wrong) - and that public jobs are not secure... that may be to some extent but these mines have been here forever, and they pay very, very excellent, with benefits, and bonuses, etc.

What is the obsession with working for the man?

nope-1004's picture

The obsession is you don't have to work.  Easy street, show up whenever, no accountability, sick days galore, etc...


Praetorian Guard's picture

I hear you. However, all these pensions amd promises that the govt has told their employees, I think will not pan out for the future. They simply cannot, not enough revenue. Plus, its not a real job. Best buddy was a federal corrections K9 unit guy and quit in a heart beat to work out at the mines. Says its the best damn move he made. More money, and you get to breath fresh air. In the end, its all about $$$$.

Lore's picture

Two words: Meredith Whitney. DYODD re: the imploding world of municipal finance. 

Seeking safe refuge in government is an outdated paradigm, like treating your house as "savings."

glenlloyd's picture

People reflexively turn to sovereign debt as a safe haven without considering that governments have onboarded tons of worthless paper and compromised their own balance sheets. They did it willingly and without complaint.

Eventually you run out of places to hide the mountain of worthless some point there has to be pain.

govt debt (muni, state, fed) is not with the risk....

pbppbp's picture

Fresh air in a mine, haha! 

quid pro quo's picture

Not to mention that once you're in, it's nearly impossible to get fired, especially if you're anything other than a white Christian male.

Quinvarius's picture

Women always want to work for the man. 

McMolotov's picture

"In this country, you gotta make the money first. Then when you get the money, you get the power. Then when you get the power, then you get the women."

U4 eee aaa's picture

There has got to be a short cut. By the time I get there my 11th finger won't work any more

U4 eee aaa's picture

If the government goes broke(or maybe just admits it), the first thing under the bus will be all those high paid public servants. They won't know how to survive in the real world where the rest of us actually work

Water Is Wet's picture

They just need to go MOAR SHORTERER.  That'll show you goldbug dickheads.  Hear that Ben?  MOAR SHORTERER!

auric1234's picture

I love the smell of short squeeze in the morning


Quinvarius's picture

Hedgefunds and traders.  Sounds like customer money, not bank money.  Lets not forget how many of those funds are owned and run by banks who can use that customer money they contain anyway they want.

Yen Cross's picture

O/T< it's a f..king miracle. Silver has been getting monkey hammered. Guess I should hit the coin shop this w/e.

                  :00:5   US 30 14508.50 -30.64 -0.21%



InconvenientCounterParty's picture

China could sneeze and blow the ponzi wide open in a weeks time.

It makes you wonder what backroom deals have been done to prevent that.

BeerBrewer09's picture

Why would they do that? They can just keep buying low until there is nothing left to buy.

Silver Garbage Man's picture

Just make sure you have your chair for when the music stops....I got mine.

Schmuck Raker's picture

I'm "the Jester, on the sidelines, with a cast."

scatterbrains's picture

In that 3rd chart it looks like the cot shorts were right and caught about a 15% drop in gold over the coarse of a few months. Then it looks like they managed to ease out of their shorts near the bottom before gold exploded higher.  Will they be right again in the next few weeks before the next lift off commences ?

Quinvarius's picture

No.  That is not what that chart shows.

scatterbrains's picture

Well it wouldnt be the 1st time I'm missing something but on the chart around april/may 98 gold is at 285ish while cot is at the highs 90k-ish.  Despite Cot at the high 90k-ish a few months later gold is at 250ish as the shorts are peeling off.

ParkAveFlasher's picture

When the shorts become the crowd, and there's a distinct tipping point, then it's far more profitable to go long - I think that's the story here.

scatterbrains's picture

I totally agree I'm just hoping to take a 2nd swoop at gold in the 1350 to 1400 range.. pretty much my plan of attack.. this 3rd chart gives one hope that there will be a flush before reality hits.  A lot more peeps need to puke their gold up before we bottom... or so I'm hoping.

dogbreath's picture

1350?   aint gonna happen.  Those charts and the COT are psycological warfare.   OOOOhhh look at the scarey shorts, its gotta go down. 

You'll be lucky  to see 1520.

Go Tribe's picture

Yep, that's the way I read it, too. Shorts did great, drove price into the ground before getting out. There was one last short attempt in August - the suckers who got greedy. But overall the shorts did well.

goBackToSleep's picture

It's simple comrade. You don't wanna be the last motherfucker pulling the cart. That would be stupid. You're gonna wanna ride in it for a while before the SHTF! Comrades get paid, the rest will be EBT zombies. You can take the comrade monies and plow them into "real money" and bug out. Just my .02. Please don't be the last one into the "Free" health care system. You're already paying for it with your 7 dollar loaf of BernanQE inflated bread. All bets are off. Game the system. If we all jump in the cart, it will cause the reset to happen quicker. There's absofuckinglootely now way they can back this shit out. It you think they can, you probably need to go back to sixth grade pre-algebra class.

Not an attack at you, PISSSSST off right now!

NoWayJose's picture

Makes you wonder if China is shorting paper gold so it can load cheaper physical...

Lore's picture

...Through intermediaries. Yah. Wouldn't you?

chubbyjjfong's picture

Absolutely. And not just China!

ParkAveFlasher's picture

Me too.  I'm literally short dollars, because every time I get some cash, I pack into the mortgage, or buy something shiny, or lock it up, or just turn it into something else.  Doing my personal part to keep the velocity of money at a "healthy, vigorous" level.

realtick's picture

back to the serif font, huh?

McMolotov's picture

All these charts should use fucking Comic Sans.

ebworthen's picture

Serf font?

But seriously, the serif's make the text more legible in general, and especially for anyone with visual impairment.

Anyone comes out with a Sans Serf or a Sans Sheriff font that uses serif's I'll be all over it.

Sigep0612's picture

This is nonsense.  We've been conditioned to think in bubble terms.  We're all puppets.  Dot com, Real Estate, Gold & Silver, and now once again, the stock market.  The guys pulling and pushing our strings know what they're doing.  The ying and yang is required in order to thwart civil uprisings.  Divert attention away from the national debt/worldwide debt, have a complicit media, and continue to dumb down the (American) public.   (I know it's hard to believe that Americans can become more stupid than they already are but....I have faith).    

However, it's the unknown unknown event...that will ultimately destroy the power brokers but at the same time destroy civilization.  When that happens is anybody's guess...but I am convinced it will happen.