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Speculator Gold Gross Shorts At All Time Highs
Premia for gold bars (physical over paper) rallied to their highest since late-2008 according to SocGen, even as 'professional' investors look to position the exact other way. The combined short positions of futures and options speculators in COMEX gold is now at a record high for the third week (having surged from 4.3 million ounces in late September to a a stunning 13.9 million ounces short now. At the same time, Gold ETFs have only seen one in-flow day in the last 34 days. It seems investors are well-and-truly on one side of this boat - even as price continues to buck the supposed structural weakness.
COMEX Gross Short positions...
ETF Holdings...
but price is now ignoring the flows (despite the protestations of some in the media)...
Via SocGen:
Shortage of metal drives premium higher as customers told to wait for delivery
While many professional investors looked to exit the market, the opposite response in the physical market to this recent price fall has also been dramatic. The price drop ignited a buying frenzy in Asia and other parts of the world, leading to a shortage of gold bars and coins in Hong Kong, Singapore and Tokyo, and helped the metal stage a rebound. The sudden demand surge caught many traders off guard and sent premia for the yellow metal soaring.
The US Mint had to suspend sales of certain coins as buying ramped up. The Mint sold an estimated 210,000 ounces of American Eagle gold coins in April; almost three and a half times more than the 62,000 ounces it sold in March. Similarly, the Perth Mint in Australia went into overdrive, working around the clock to keep up with an intensity of orders not seen since the 2008 global financial crisis.
Premia for gold bars rallied to their highest since late-2008 in Singapore and touched an 18-month peak in Hong Kong after a spate of physical buying led to supply constraints. Premia in Hong Kong touched $4/oz while in the Middle East there have been reports that both Istanbul and Dubai ran short of investment bars, with wholesalers paying a premium of $6-$9/oz for kilobars.
Retail gold sales tripled across China on April 15-16 after the rout, according to the China Gold Association. On the Shanghai Gold Exchange (SGE), daily physical volumes averaged 12.9 tonnes from the start of 2013 through to the close of business on 10th April. During this time the average premium on the SGE over loco London metal was just over $13/oz, itself a substantial increase from the 2012 average premium of less than $7/oz. While in contrast, during the price drop between 11th and 26th April, physical volume on the SGE averaged 32.6 tonnes daily, with an average premium of $20.4 over the London fix.
Turning to India, investment demand (albeit boosted by the imminence of the Akshaya Tritiya festival) has been significant with premia surging to a peak of $30/oz briefly before settling back to $8/oz in recent days. Imports exceeded 100 tonnes in April and looks set to repeat the performance this month ahead of restrictions proposed by Reserve Bank of India that will likely ban or at least restrict bullion imports on a consignment basis.
While investment bar and coin premia has eased from the frantic highs, they remain at elevated levels in several markets, with robust demand surging at every retracement in price. Mints and refineries continue to struggle to deliver supply chain orders with up to a one-month wait for delivery. For now though, there appears to be a growing disconnect between paper and real gold.
Charts: Bloomberg
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Anyone going to buy less if the price goes down?
When BlackRock says buy Gold, I'm in like Flinn.
Not that I wasn't already; their assesment means there will be a sheeple run.
Wall St price is telling the world: Gold? Who needs gold when you could have treasuries! Or your choice of fantastic equities, like our most recent IPO, Facebook, which is down 29% since launch, and has a P/E of 1737. But don't worry, a high P/E means its GROWING FAST.
Physical markets worldwide are telling Wall St: You are telling me the price of gold is $1435 USD per oz. Here is $1435 USD, and yet, you will not give me an oz. of gold!
Gee, so there's record gold shorts, meanwhile a Mr. Matthew Craft of the AP is busy delivering gold's eulogy.
http://apnews.myway.com//article/20130512/DA67SA100.html
Hope he is getting paid well to sell out his fellow countrymen...
He talks about "withdrawal(s) out of gold funds" and then says its not clear where the "money rushing out of gold" is going.
Hmmm.... Does this guy have two brain cells? That a gold fund that tracks the price of gold might differ from.... The physical stuff itself? That if you withdraw your funds from a gold fund, you are not selling your gold, you are asking for physical delivery!
This could be a set-up by the BB's who are now net LONG. A reversal would force short covering by the specs and see a very significant trend reversal?
Anecdotal data point. The Bearing bought gold in increments after the price plunges, but is now OUT of FIAT$ to buy moar.
Another anecdotal data point: the 24hgold.com/eBay widget shows a premium of 11.8% of price for AGEs vs spot price, relatively high, it has been rather high for two weeks now.
24hgold.com, at the bottom of their home page.
DoChen you say you are out of fiat? My guess is that is what they are counting on. Now if they can just crush you until you have to cough up that worthless relic. That would be something.
@DoChen
~~~
Do you 'anecdotally' think that I should start doing TAI CHI?
@ fonz
$ "money" will come in when it comes in, no way do they get my gold. Squeeze that, bitchez.
@ francis_sawyer
F**k yeah, any way you can do Tai Chi is worth it! Unless it's rayciss...
Good answer
Sadly, looks like a bunch of us might be leaving (getting banned) this once proud site which always encouraged freedom of speech. Amazing to see Fight Club turfed by its current owners. Good luck everyone if this is the end of road for ZH. Its been a great run.
http://www.zerohedge.com/help/notice-racism
Das rayciss, ban him!
Is a "Libtard" an affiliation or just an affliction? It's not a race (yet) or religion (maybe?).
Also, does this mean WB7 is gone, too? You know Debt Brother #1 and the Bernak may take offense to the visuals.
it really was the last place of freedom...next no more down arrows...i guess they put jump the shark back on the map....im pissed....
What is racism?
Sometimes it's obvious: beaners all need to die.
Sometimes it's political/social: we should seek to keep massive numbers of hispanics from strolling across our border and overwhelming our welfare system.
Sometimes it's just Fking wack: African American and hispanics test lower than Asians and whites on all tests that can arguably be associated with intelligence.
Tens of Millions (billions?) of people would argue that all three are racist statements, while sane people would be more inclined to find the first a racist statement, and the other two not remotely so. Let's hope the ZH staff is sane.
Question: Does this mean Francis Sawyer has already been booted? He's too blunt to take the delicate approach to Jews, which is: Jews have an average IQ 10 points higher than north Asians, 15 points higher than whites, and 25-30 points higher than Latinos and blacks, so we ought to expect that they will gravitate to and succeeed in the most challenging/rewarding/rapacious/manipulative endeavors: banking, law, medicine, entertainment financing etc.
my darling dochen
quit, cease, and desist from ever using the useless macho idiot cry of "bitchez"
then and only then will I consider you to be a Tai Chi non-racist.
You are what you do and say.
End of comments comes now.
This site has descended into a great deal of idiocy. Reminds me of a coach-abused rugby team.
Private school boys with bullying behaviors. Egomanical comments that serve to enlighten noone.
Other words a clique of mal-adjusted behavior.
I ask? What makes you swarm of locusts at ZH (you recent arrivals who cannot resist using "Bitchez" replies and repetive, non-thinking behavior as a declaration that "yes I am here and am part of the gang....when in fact you are non-thinking sheep grazing in a different meadow.)
It is a wonder to me that Tyler and the gang continue to allow this comments crap to go on and on when so polluted by nonsense. Many contributors here are no smarter, no less "tainted", no less ignorant than all they rant against.
"bitchez" as a battle cry. You fools. You deserve to sink.
No "bitchez", bitchez!!
Just goes to show you that ZH has no balls - is that a slight to eunuchs? Only an idiot would think his religion, race, etc is inferior to others.
>> looks like a bunch of us might be leaving
I've been banned from a number of sites, not for racism, but more othen than not for having a differing editorial opinion. It doesn't take a heck of a lot of brain power to express your thoughts without delving into mindless drivel like racism. I hardly see where the same wankers ranting their jew banker tripe or anyone of color is a mooch mantra helps anyone. Elivating the discourse above the animal camp level isn't necessarily a bad thing. Nobody learns anything from repeated mindless banality.
You can have a different opinion, so long as you don't have the wrong opinion about Darwinian selection having effects on Homo Sapiens on something other than skin color, epicanthic folds, melanin levels, prevalence of sickle-cell anemia, and a whole host of other well-documented physical, biological characteristics.
In other words, you must not believe that there are .-'*ANY*'-. psychological, cognitive, emotional, subconscious or neurological differences between races (good or bad!). Despite the obvious biological and physical ones well proven.
http://www.zerohedge.com/help/notice-racism
So that's what everyone's been going bonkers over. Not that I really care either way but it is comically ironic that a blog styled after fight club has such a policy.
Guess the advertisers weren't liking some of the unhinged commentators on here.
i guess it never is different this time......what a shame ...
My guess is the Wall St Banksters, Zionists and NWO types dont like being called out @ ZH all the time.
Not to mention the gold trolls, who are completely unhinged.
My guess is the Wall St Banksters, Zionists and NWO types dont like being called out @ ZH all the time.
Not to mention the gold trolls, who are completely unhinged.
Advertisers more specifically exclude porn sites, sites with graphic content / illegal content & sites featuring racism.
https://support.google.com/adwords/answer/2456096?hl=en&ref_topic=1713963
It's very easy to exclude such sites and would immediately be felt in zh's revenue. And their ad revenue must be pretty substantial.
Funny, James, how BayofPigs mentioned gold trolls in a generic sense, and you immediately came charging in.
Funny, James, how BayofPigs mentioned gold trolls in a generic sense, and you answered the charge.
I'm guessing BoP mentioned it as reference to our past arguments responding to me writing 'unhinged.'
But speaking of 'answering the charge,' do you subscribe to my comments or something? Almost every time I write something on zh you show up.
+100. it is the Zionists. They told ZH they were going to pull their ad money and fight club just became WWF...
If ZH ever needs to be reconstituted "Fight Club Part Deux" or "Project Mayhem Continued" would be suitable names, IMO.
@ Bay
As I mentioned in ZH Chat, my GUESS is that ZH just put it in as BOILERPLATE. Just to satisfy the Swiss lawyers. Maybe they will loudly trumpet the occasional troll who is REALLY BAD. I doubt (but who knows?) that we have much to worry about.
Bitchez!
DoChenSan!!!
now that ZH has gone mainstream, they must crack down on it.IF they want to continue to remain creditable,as a REAL news source,my take on it anywho.
its ok bay o pigz its stil fight club. we are asked now to just put on these cute new zerohege fight mittens now when thrashing each other.
We do not all get along together- bit like a zoo, where they have learnt not to keep the rabbits and snakes in the same pen. As someone famously remarked, all the caucasians, the Africans, the Spanish, the Indians n Chinese, the jews, aborogines,cossacks and inuits want to bash a paki
It's all the fault of the TRIANGULAR CHEESEPOPES !
Wah! If the price of gold goes down, I won't buy any more gold! Wah!
If the price of gold goes down, I won't be able to get as many paper dollars by selling my physical gold! Wah! I want to get more paper dollars! And I thought I could use gold get them! Wah! Now I might not be able to! Wah!
I hate gold! Wah! I will not buy gold ever again! Wah!
Exactly. Owning gold and thinking of your gold in USD terms do not jive. If you are holding for the end game, then you care about the price of gold in 'New Dollars'.
"If you are holding for the end game"
You may want to be holding canned food and ammo?
Diversification. It doesn't mean what it used to. In this case, geography is of paramount importance.
"Head West, young man (just not too far West)"
The blue plague is spreading, Colorado just fell. Utah and Idaho look good. Utah's LDS population prepping as part of their religion gives it a slight edge, and is a beautiful state, too.
Spam futures...
These Inv Banking Researchers are always looking in the wrong place.
SocGen is one of the 11 LBMA market makers for gold spot and forward and one of the 5 Gold Fixing Members, so they know the exact OTC trading patterns from their seat in London and the physical flows in and out of the market.
Then they publish this shit about comex and ETFs... Same for Barclays Suki Cooper and co and the other analysts.
Wake me up when an Inv Banking analyst actually writes about the London OTC gold market and the total vault figures in the London vaults...
SG owned by R's...
I am actually bummed, I am hoping premiums will decrease before I buy moar!
We may have 2 serial down-voters on this thread.
This is indicative of just how courrpt this financial sytem and these bankers have become!
Front-running the next slam down.
Shorts; People who like to give you stuff on sale.
Surprised Gold and Silver are not down further on tapering fear. I thought they would be slaughtered today.
People say ending QE would hurt precious metals.
Well, that depends if you believe the Fed, first and foremost.
Secondly, it requires you to believe that there are buyers out there for US Treasuries (i.e. that stopping the presses is even an option).
Third, you would have to believe that the biggest Wall St (and London) banks can withstand a raise in interest rates, at this point in time.
Of all the three points, the third one is by far the most outlandish. The big banks were BIG sellers of interest rate swaps, where variable rates were swapped for fixed rates. The seller of the fixed rate benefitted when CBs worldwide initiated ZIRP.
Now imagine you are Barclays, and you have all this debt at variable rates, which are currently as low as they have ever been, what would happen if interest rates were raised? Anyone want to explain the derivative implications to the uninitiated?
You gotta love it, metals have been shit kicked since qe started, and they will be smashed when it ends.. I'll keep averaging down, and finding God so I can head over to the church, light a candle and pray the people behind the curtain get stage 4 cancer for their birthday, and the shorts get their faces blowtoched off (as the metal bugs have).
There will always be buyers for US treasuries as it is a medium of exchange when your talking Big Money. Now absent QE rates would have to increase because buyers would hold out without competition from the FED. My guess is the FED is going to hold most of it's 30 year debt for the duration. The FED's balance sheet won't b e wound down for 30 years, but it will stop expanding much sonner than people think.
Gold the ultimate medium of exchange, particularly when priced right.
Ask Franz Pick, OSS or CIA...
How is Blythe doing with that lawsuit on her trading energy futures Enron-style?
The judge is enjoying her soft mouth.
This is eerily similar to the December 1974-August 1976 period where the Gold price fell from $184/oz to $103/oz.
Of course Gold then increased more than 800% over the following 41 months.
A similar decline this time around would take it down to about $1,050/oz. That ought to shake quite a few cowboys off the bull's back.
I'm so fuckin' there. If you can't shake off a 40% freefall, stacking ain't for ya bitchez.
as long as the way back up does not include an etf.
My dollar cost average is still sitting under $300 on my physical. Gold down to $1,000 again? Fucking bring it! I'll become a damn bank and belly up to the Fed's discount window, yee fucking haw!!! It's a club folks...
China and India already going ballistic at the cheap prices...lower?....doubt it, at least not in physical.
yeah, and AAPL will fall to 20. Neither ain't happening. My guess is the Univeristy of Texas Retirement Fund will buy another $4 Billion on top of the $4 billion physical they already own if the yellow metal drops more.....
A similar decline this time around would take it down to about $1,050/oz. That ought to shake quite a few cowboys off the bull's back.
Personally think there will be an absolute impossibility to purchase meatal at that price.Everyone IN the know will be buying Phyzz hand over fist.Esp Asians/Indians, and anyone with half a brain.
They need to get the gold sentiment as low as possible before they announce their new ponzi scheme to "fight unemployment and deflation".
i was in the camp that JGB vol was gonna send gold lower, will montior.
Press the green button if you cannot wait for this market (not the gold market btw) to CRASH & BURN?
I wish I could. Gold can't be bought from Scotia Bank in Canada. They just don't seem to have any?
Shortage of metal + increase in Shorts = Gold stands Tall
I thought there would be a remake of the April takedown too today...but not so....I hope physical wins...but you can never underestimate the TRIBE and what they can do with computers...they will...to me it seems they are setting up a big fall..and more metal will rush to Asia...but it brings us closer to a Comex Default or a LBMA default....this year for sure I bet...
Since the shorts are all retail, I think they will let price happen. If non bullion bankers think they will be allowed to default with the bullion bankers, they are sorely mistaken. Day 1 banker default. Day 2 price at $2000 with everyone else.
I think you'll see the bankers net long, then the Comex rules changed to REQUIRE delivery - get it where-ever you can whatever the price. In either case, I agree, the rules will not be the same for the speculative players as they are for the owners.
So maybe Bernanke has a keystroke for buying short gold options?
"Ctrl+S+G"? That would take two hands though, maybe it's "Ctrl+Z", opposite end of the keyboard from "P".
Using two hands is no problem. Krugman sticks the finger up his ass, so both of Bennie's hands are free and dedicated to his printing efforts.
So is it those damn evil speculator when it's the Morgue squashing the paper price of metals? I demand an investigation and the guilty parties held accountable.
the short squeeze on this is going to be nice
Gold was $252 in 1999, and silver was 5 bucks.
Ah, the wonderful dot.com bubble days...
And with gas at $1.15/gallon, you could fill your tank for less than $20.
Seems like a million years ago.
Gas is still the same price in the USA, around one silver dime per gallon.
Wish I could give you +100.
According to coinflation, a dime goes for 1.70. A gallon is 3.75 where I live.
Expect a correction, in that case.
New Normal 101 ... Supply down = Price Down ( see- gold and silver )
Supply Up = Price Up ( see- oil inventory and gasoline consumption )
Any questions?
makin' my head hurt...
http://richcash8tradeblog.blogspot.com/2013/05/4-silver-and-400-gold-with-dividend.html
It's getting time for my annual boating trip
I always like to bring my PM stash with me on my boating trips. It makes me feel good and what could go wrong?
MUCH safer to bring your gold with you than to leave it in a dark place somewhere at home.
These shorts are linked to currency plays, i.e. yen going lower thus dollar higher thus gold lower in dollar terms. IMHO Ignore those pesky stock bugs and buy the metals discount.
Good point. And just like in April, should the US dollar rise against the Yen and COMEX gold price falls, watch the premiums for physical start to rise again and take out the reduction in COMEX price. Its almost as if d(Physical Gold Premium)/d(COMEX Gold Price) < 0, - or that d(Physical Gold Premium) = d(COMEX Gold Price). In my neighborhood, spot could fall to $1200, and I'd still have to pay $1530/oz with 2 month wait for delivery. Bring on the shorts! It will help make COMEX become increasingly less relevant.
Those who believe that the QE will end in American better check their Easter Baskets from April to see what the Easter Bunny left them! In short, this is a premature setting for the gansgters to slam Gold on yet another lie about money printing.
The time is coming to take on some positions in the yellow metal. The bottom must be close. Mining stocks and leveraged positions are my thing to trade gold with.
Hitler is more popular than PM Miners right now. So, I'm with you, buying Miners. And no, I'm not worried about Mines being nationalized in Canada.
No physical to be bought right now in Canada. Go figure?
Where you been doin your bullion shopping?????
I live and work in downtown Toronto. My bullion dealers got lots of gold maples, silver leafs, Krugerrands, AGE, Phillharmonics, etc etc.
You one of those guys who's getting screwed on premiums by going to places like Scotia Bank and the other banks selling the mints stuff?????
Any Canadian companies in particular you'd recommend? I'm looking at CGR, it seems like a decent one.
http://richcash8tradeblog.blogspot.com/2013/05/4-silver-and-400-gold-with-dividend.html
So this is how to make a risk-free bet. You make up an idea on something, then charge for advice... if it works, you keep the profits. If it doesn't work, simply refund. Sounds like an excellent idea to obtain risk-free profit.
Except I don't fall for this kind of bullshit.
Going long paper is actually an incredibly stupid idea. Thanks for the personal website pimping though.
http://richcash8tradeblog.blogspot.com/2013/05/4-silver-and-400-gold-with-dividend.html
I just paid $2 over spot for a 100 oz RCM silver bar so suck it. Times are tough all over for bullion buyers but what are you going to do? Save your clownbucks in a risky bank and hope spot goes even lower and premiums go back to normal? Good one. I'll pay a little extra thanks.
Those RCM bars make excellent boat anchors! Just make sure to use something good and strong for the line like dental floss.
gold may be money but it's obviously not your money. the Rothschild plutocrats control gold and everything else of value "en gross" on the face of this earth. imagine investing in a substance which you can possess and supposedly store securely and hidden away only to find that some powerful,unknown, and invisible (to you) hand can steal at will while you are sleeping, working or even out buying more. what is really "devaluing" here? it certainly not just the FRNs in your bank acounts or wallets. only the old hands who bought long ago are still ahead of the game and might possibly remain so. but the bag of tricks of TPTB are far from empty no matter what discredited gold writer and guru you are personally following. think about taxing, auditing, and monitoring gold purchases in real time leading all the way to outright confiscation. this is an incredibly small and thus transparent market and if you think they don't have any idea who owns what, you're about 50 years behind the times.
the corelation with the burgeoning efforts at gun control starting with the interdiction of ammunition supplies through government purchases is especailly striking. tried to get a hold of some .223 or .45 ACP lately? the same tactic applies to the precious metals which along with gun ownership is the greatest threat to the implementation of the golbalist agenda in the US. Au and Ag are the monies and the possession of the elites and they are not going to let you forget it despite the crusades for true price discovery carried on for decades by the GATA and the gold bugs. the same goes for the firepower necessary to control the streets. they want it all as their sole possession, and it's going to take all the stealth, cunning and proactive positioning you can musterfor you to hold on to your own. good luck friends.
they can't control it if they don't hold it - and its all moving to vaults in Russia & China - good luck with that Rothschild
the transference of industry, intellectual property and now, the mother lode of world wealth in gold to China began decades ago when Richard Nixon visited the Middle Kingdom and continued apace under GHW Bush when he was ambassador to China. Gold has a way of migrating to centers o feconomic power as a safe haven. Look at the tranference of tons and tons of gold during WWII from the continent and the British Isles to the US ahead of the Nazi invasion. Gold may change location but it rarely changes hands.
The R's own China and Russia, hello...
Pfff, holding physical gold & silver is like holding an erection for several months.
Not quite, viagra can make an erection appear from thin air, creating paper or digits from thin air cannot make physical gold appear. Pfft indeed.
When it hits 55k, i will be arrested for owning a pressure cooker.
They're 'short' way more than 14 million ounces at the ol' casino...
Stupid games. Get it into your hands while it's still affordable.
Increase in gold shorts to force paper prices down again before Q4
Physical PM's will see greater disconnect in pricing w/ increased backlogs in ordering. Example: US MINT Silver Eagle 2 Coin Set
First day to order May 9 Delivery Estimate: June 17, 2013
May 13 Ordering Delivery Estimate: Sept 30, 2013
These comments also cover my sentiments pretty well
http://www.zerohedge.com/contributed/2013-05-11/fed-knows-its-created-another-bubble-and-managing-down-expectations#comment-3552178
http://www.zerohedge.com/contributed/2013-05-11/fed-knows-its-created-another-bubble-and-managing-down-expectations#comment-3555078
Still no guesses on the famous celebrity look-a-like
Anyone?
At some point, buyers of physical have no more money to buy physical. That point is coming soon.
Derp... I guess you don't recieve a regular paycheck
People haven't borrowed money to buy, haven't sold other assets to buy more, haven't sold the house to buy, etc. So... The buying will continue. Because those who are buying gold now are people now saving their wealth in gold.
"At some point, buyers of physical have no more money to buy physical."
-------
You're kidding? China's dollar reserves (only one China) allow to buy all the gold in the world twice.
At some point, buyers of physical have no more money to buy physical. That point is coming soon.
Ah, but look how much they will have stacked.The only way you run out of coins is no job.
You wish. There is an endless supply of paper out there.
$8 trillion dollars of global gold versus a quadrillion dollars of derivatives, less than 1%?
Extremely doubtful...
Stupid Asians! Creating this paperVSphysical 2 dimensional shit! Wait until all marginal producers shut down operations due to low spot price. Where's the physical premium then? Stupid Asians... :(
What you need to ask yourself is what these shorts know that you dont. They are betting the paper price of gold will fall. That is the correct bet because as the paper market burns the price will continue to decline and yet you will find no physical gold available for purchase anywhere. I expect as well that before the coming revaluation gold never hits north $1500 in paper terms again. The bull market is indeed over, but if you understand what that means you will be more bullish than ever. Those in power are using irony against the stupid paper longs who think that the price discovery mechanism as it currently exists will someday reflect gold's true value. It doesn't now and will not in the future.
Here's a way around that.
Buying a company that gets silver bulluion at $4 and gold bullion at $400 and sells it well:
http://richcash8tradeblog.blogspot.com/2013/05/4-silver-and-400-gold-with-dividend.html
Here's a way around that.
Buying a company that gets silver bulluion at $4 and gold bullion at $400 and sells it well:
http://richcash8tradeblog.blogspot.com/2013/05/4-silver-and-400-gold-with-dividend.html
And WHO is their source, since both those prices are FAR below market costs to mine it?.
Somebody short is going to come up "short."
The volume of increase over such a very short time period tells me this isn't your grandmother's retail broker advising her to short gold. This appears to be a coordinated move to stampede the herd into getting out of gold.
We all know the gold on paper isn't really there. It is far less criminal to pay people for their paper now before they do something like start demanding the physical.
What makes this a real thriller is seeing that their shorting is doing exactly the inverse of what they expected - as testified by their going short. Gold prices aren't falling; they are rising.
That's a major problem if you are short. And as I wrote when I started this post, that means someone short is going to come up short when prices don't fall as expected. I can only think that because this is a coordinated move, they think they will repeat the April Waterfall.
Unfortunately, I think they forgot that the Indians and Chinese - and much of the rest of the non-western world's wealthy - don't view gold as the Westerners see it. This is an incredible fire sale in their eyes. Someone’s doing the Eastern Hemisphere's Cramer "BUY - BUY - BUY" right now.
So let's see how this goes - in a way it might really be a mile marker when the East really lets the West know its time on the money throne is over. Let enough rich Westerners eat poop with their short positions, combined with the physical finally shown to be long gone and to who knows where, and you will see some serious problems.
Remember, you can burn the Muppets all day long, but you can’t burn the Uber-Wealthy because they will kill you. When the Uber-Wealthy get burned on gold . . . it’s going to be a very scary life - what little will be left of it - for whomever gets the blame for it.
Never forget that the best thing to ever happen to Madoff was to get locked up in a Federal prison where the Uber-Wealthy he burned can't get to him . . . yet.
This really is interesting - ZH is like the preview trailer of a movie . . .
-30-
More Clues About What Happened in the April Gold Swoon:
http://winteractionables.com/?p=2230
open interest is high and there's an equal # long positions to match the # of short positions. The real question is WHO is behind the short positions and WHO is behind the long positions.
Being short gold futures or holding puts can also be interpreted to be a veiled play against equities. With the amount of leverage in equities, it won't take much downward movement for folks to liquidate to cover margins - and the easy thing to liquidate is Au.
Quietly, gold and silver are completing the setup for a primary bull market. If both metals break above the 04/29 and 04/30 highs, a primary bull market will be signaled as explained here:
http://www.dowtheoryinvestment.com/2013/05/dow-theory-update-for-may-13-...
Conversely, if the 04/15 lows are violated, then get your life preservers...
The ONLY reasons to short gold are:
-----
#1: To manipulate the price of gold lower to pretend the dollar isn't a piece of garbage, knowing your fraudulant organization benefits more from being able to create dollars out of thin air than you lose on gold manipulation.
#2: Because the predators-that-be and predator-class have decided to kill gold by having the federal reserve raise the interest rate significantly, substantially or dramatically.
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The fact is #2 is quite a dramatic move, because it greatly increases borrowing costs for the federal government. This is no problem for large corporations for at least several years, as they've borrowed simply astronomical quantities of money while the interest rate hass been 0%. Every foolish individual willing to borrow money already has a home or three, so much home buying is now cash [from abroad], which will not be harmed by higher interest rates. In fact, higher interest rates will crash housing prices, making cash purchases even more attractive over the next couple years.
So, if the predators-that-be hate gold enough, they could be setting up gold for the most massive takedown in history. All things considered, this seems rather unlikely, but this is a possibility. To protect themselves, anyone holding most or all assets in gold might want to buy some extremely cheap, far out of the money put options on GLD or gold miners (or something... I'm no expert at this sort of hedging).