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They Better Pray There Is No Short Squeeze...
Well, they've finally done it.
As the following chart of the day from Bloomberg shows, as of this week, hedge funds have made "the biggest bet ever" against gold by taking Comex gold shorts to all time highs.
To their reflexive benefit, we will admit, they have managed to push the price of gold lower, not much... but it is lower (whether with the BIS' assistance or not is irrelevant). It is a different question if the price of gold is low enough to reflect such a record bearishness. But the biggest question is what happens if there is a catalyst to launch a covering rally: such as, hypothetically speaking of course, the People's Bank of China were to announce that it has in the past four years in which it provided no updates on its gold holdings (last is as of 2009), accumulated some 2000-4000 tonnes of gold.
Surely, that would be most unpleasant to all those record shorts, and the impact on the price would be most parabolic. Why, all those shorts better indeed pray there is no short squeeze now or any time in the future...
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Well, that is something at least... It is impressive considering the amount of paper they had to push out to do it.
There were several medium paper cuts. It was as if a tornado rolled through....
They are going to get squeezed by the physical gold shortages being reported on the exchanges in Shanghai, Mumbai, Hong Kong, Dubai, Singapore, etc.
If I take of my golden shorts, all will see my naked long!
And here, laid bare, is the essence of the squeeze.
Haha bunch of Fed Faggot lackies, good luck shaking this long...hope you get your balls squeezed off.
They aren't worried. Ben's got their backs.
And Ben's not worried because he's got the country by it's balls.
And the country'ds leadership are not worried because they have no balls
Actually name me the funds that are short paper gold beside Fed onshore LLC ... and if they fudge BLS data they sure aren't fudging comex data ... that would be unethical isn't?
Might be time to buy some puts on gld again. Then I can sell at a gain and buy some more gold.
They can talk about the "price" of gold/silver all they want. But I'll tell you what, I will just keep stacking and when the paper and physical markets separate, I will tell THEM the price at which I will be willing to sell it. I win.
Yep, thats the thing with manipulation. All they are doing is providing a 'suggested price'. You don't have to transact with them (esp. sell) at those prices.
Bernanke you incompetent PUSSY. Take Gold and Silver to zero, you wimp! C'mon.... show your power, you pink toed pussy. I want gold and silver at zero to show the world the strength of the US economy. Don't let me down now, you wimp. Show some balls.
“The Price Discovery Mechanism of Central Banking: It really looks as though the Price Discovery Mechanism is not so much the traditional function of Supply & Demand, it now looks bent toward Liquidity, the perception of the delivery of that Liquidity, not necessarily delivered, and the eddies of greed and fear which congregate to feed, sometimes temporarily, as that Liquidity moves to find a new place to park, freshly cleared and clearly marked at the behest and agenda of the Central Planners.”
http://twoshortplanksunplugged.blogspot.com.au/2013/05/gold-real-estate-money-and-price.html
I don’t understand..
Not a single one of my troy ounces seems to be less than 31.1034768 grams.
I do not see a shortage.
Post Cyprus, there has also been a silent run to physical gold in the West and many owners have found that their allocated gold is not available for delivery.
The bullion banks and the central banks have essentially been running a fractional reserve Ponzi scheme and it has become evident that the physical is not there.
Youre saying they will take it in the shorts?
Yamashita's gold people.... do your research.
What if three olympic size pools became 300 olympic sized pools.
What would that do to price? OR value even.
ori
Yamashita's gold...
That fucker needs to learn how to write and get to the damn point rather than going off on tangents and blathering on.
The naked short slam in April was allegedly an act of desperation meant to shake loose bullion from weak hands in order for the COMEX to meet big-pocket delivery demands. Default was averted for a few weeks. Now, the psychopaths seem to be ramping up for the same manipulation on a much grander scale. It's very hard to see how this time could not be the last time. Real market participants are LEAVING.
It's so EXCITING! At times like this, it's a privilege to be here on ZH among people who give so generously of their time and brains.
Honestly, I have been tracking this whole ordeal for three years now. Some have been at it longer than me.
The start of the final game was back in November. We are just now starting to see the results of endless paper printing. I agree with on this being it, outside of drastic government actions that would likely spur a social crisis. I don't see how they plan on holding this up any longer. Almost everyone I know that was in the markets are out now, and my only holdings are miners that would cost more than I am willing to pay the bastards to pull out of. I would rather the miners keep the money, they earned it for getting dicked so hard IMO.
Haven't the bullion banks gone net LONG while doing their best to exit their short positions? Perhaps the hedge fund guys are reading their (heavily manipulated and painted to perfection) charts without realizing that there's a much larger game afoot. It seems that faced with heavy demand and rising prices, the bullion banks (with Fed approval) shot their wad in trying to suppress prices (and pick up some physical cheap). They've taken advantage of the low prices to cover outstanding short positions as well. But the wave of buying they let loose makes it difficult to continue this game without all physical stocks being depleted.
If the hedge fund gusy are reading the chartts and seeing a long term drop in gold prices - and 'lessening demand' (despite all the physical buying in the real world) they they may end up being the suckers in this game. If they're reading the outflows from GLD as investors giving up on gold and are actually listening to the BS touted on MSM about the 'end of gold' then you really have to wonder how smart they really are...... or are they saying one thing and doing another? It seems like the scramble is on to get gold and HOLD IT PRIVATELY (out of the reach of banks and states).
I would be really surprised if the bullion banks haven't figured out a way to get out of the awkward spot they're in and are playing EVERYONE - including the Fed and Treasury. Wouldn't surprise me at all to have them settling accounts in cash at some point (at a very low price) when it later turns out they've built up substantial stashes of their own that are beyond reach of anyone else.
Or Bix Weir is right - the US is far richer than anyone can imagine and we're screwing the world for as long as we can before the US defaults and then - isolated from world trade - rebuilds anew after hanging the financiers that caused so much grief. Not betting on that scenario though.
this
is
getting
too
thin
!
ORI very good point, and they have driven it down almost to average production cost, but the tell is whether they can drive it below that, and I have serious doubts.
"whether with the BIS' assistance or not is irrelevant"
Noted, thank you!
The London Gold Fixing is rigged. The Bank of England supplies liquidity in the form of metal to 'moderate' price swings. They have always done this. So the Bank of England is what you would call a Liquidity Provider. But in this case it is a liquidity provider of last resort that is always available. So it is a Price Manipulator. Just ask Michael Cross of the BoE. During the Fixings the Bank of England comes in with supply when needed to keep the fixing price lower than it would otherwise be by supplying metal. They used to sell gold into the Fixings and buy it back later. Terry Smeeton did this. Now they mainly just switch it around like a game of musicalchairs, using debits and credits and IOUs. This explains the liquidity management that JP Morgan and the other clearers do. The whole LBMA system is corrupt and heopfully will implode soon.
THREE anti-gold stories up on Marketcrotch™ right now..
"Gold won't make a comeback"
"Don’t be fooled: Gold is no currency"
and "Gold is Not An Inflation Hedge"
Bloomberg's got one too.
http://www.bloomberg.com/news/2013-05-22/record-gold-shorts-signal-furth...
I would like to just say that I like your style.
Me I don't want to see the Bernanky balls. But I would really like gold & silver at zero, or maybe negative prices.
"They can talk about the "price" of gold/silver all they want. But I'll tell you what, I will just keep stacking and when the paper and physical markets separate, I will tell THEM the price at which I will be willing to sell it. I win."
Wow, you tell them - dream on
LMAO, as if anyone would even want it. And btw, thats not how the transaction would occur, just like now, you can say you want $3000 for it, but it is only worth what the next person is willing AND ABLE to pay.
Gold is divisible, and does not have to be sold in whole ounces. Maybe people only get a few grams for what they are ABLE to pay. It doesn't stop the transaction.
Again, PM prices seem most correlated to the rate of change in money supply. This does not indicate manipulation.
Compare the M1 and M2 rates of change here:
http://www.shadowstats.com/charts/monetary-base-money-supply
...With the Multi-year gold 2000-2013 chart here:
http://www.kitco.com/charts/historicalgold.html
Given that relationship, it's not surprising that bets on lower PMs coincide today with increasing talk of tapering.
Compare the value of available gold with the $100 trillion bond market that the central banks have created.
http://static6.businessinsider.com/image/519a5c3569bedd0d17000002-960/sc...
As the following chart of the day from Bloomberg shows, as of this week, hedge funds have made "the biggest bet ever" against gold by taking Comex gold shorts to all time highs.
Good to see this article point out who's actually 'btfd' ....or wait they didn't make that super obvious connection, my bad.
Small specs have very low long exposure. Bet agains the little guy.
Large specs get it wrong at the inflection points all the time. Bet against extreme positions.
Fuck yeah! I'm gonna order some more phizz today!
Are you lost or something?...welcome to the wrong side of the railway track!
I think you mean REPORTED money supply. The money supply provided by shadow stats continues to go upward and onward. But I suppose you're right what's not to trust in the last two adminsitrations and the FED?
Yep. And there's no inflation either. I must just be buying more stuff to make my grocery, water and electric bills go up.
Except in the real world where M3 is used as money, and not M1&M2, you are ignoring the important portion of the ratio.
Bought a little physical just today...
:P !!
Got your Auto Delete message...Sly Dawg!
Thanks, and will do.
I can see a ZH reunion one day...possibly political prisoners in jail at this rate.
They have FEMA Camps down where you're at?
Nope, the whole island is a prison, or was. FEMA-AUSTRALIS.
You mean China's source of raw materials and future resort? Methinks you'll be trading one master for another in the future.
God knows what the US will become.
Speaking of what the US will become: has anyone else seen trailers for the movie "Purge"?
I think ther should be some ZH get togethers. It's not like the DOJ hasn't obtained all our records already.
I hope you don't plan on going boating soon.
Well, I'm actually looking to buy a boat this weekend. I figure I should get the best deal from someone who is into PM's. They seem to be more accident prone as a societal category than any other known group.
Which makes me wonder ...
Would using PMs to buy a boat not cause some kind of paradigm in time-and-space causing the whole Universe to unravel!?
Not if the boat is made from PMs.
Check out, "House Boat to Heaven" ~ Townes Van Zant (RIP). One of my five favorite songs.
yes and no. a boat out of precious metals becomes an ark. time and space are changed by it, but only inside. same as in a pyramid if you put the right amount of electrum on top of it - though in this case you have to stare at the eye that pops on top and starts to mother you. not everybody can stand that eye, mind you, it makes you do your homework, be nice and all that
seriously, Acet, Bearwagon, I thought you know this stuff ;-)
Seriously, if the time space continuinuinuum is changed only inside it is not an ark, but a parliament. I know relativity. Inside that place they are completely detached from our timeline, and that's why we have to suffer so much: While the parliament on the inside witnessed only a few days passing by, it's been more than fourty years here on the outside. Doesn't that explain a lot? ;-)
seriously, marriage can have the same effect
AKA the Soprano's.
Let 'em take it to zero, Al
...THE INTRINSIC VALUE OF THEIR PAPER.
If I were them, the thing that would most concern me is that the Bullion Banks are now net long. Lambs to the slaaughter?
One needs like 100,000 shares of GLD to withdraw physical.
Dump the price, cash in your tickets for extra ounces.
They know what's coming.
China was doing just that two years ago.
Job claims are down, translated this is bearish as more incentive to taper QE. This BLS (minus the L) statistic will tend to push gold and market down... Today is a good POMO day however.
http://www.newyorkfed.org/markets/tot_operation_schedule.html
The bankers are setting us up for the next great fleecing. Er, I mean "the Muslims did it"....
Ben don't do reacharound.
he pays an additional money for each HF that has a short interest
Same who is printing is also shorting the COMEX. Dollar stability just a little longer.... When the wheels come off, this is going to be a doozie...
Time will tell. Grab some popcorn.
And a video: https://www.youtube.com/watch?v=_vKxhqSJvPk
...errrr, reality!
Surprise coming for da shorts.
Hope you are right, but thats not what im seeing. There is no shortage for most physical buyers. How much are you looking for? 10oz? 20oz? I can get 50 within three days. 100 in 7 days. Checked today. They tell me the only delay is they are not holding inventory due to volatility. But they have sell orders waiting for match up. Don't get me wrong, I like the stuff. But I don't see any shortages in mich.
It really depends where the heck you are in the world, and what denominations you want.
I hear 10th ounce gold coins are sold out pretty well.
The shorts in the paper market may be correct though. I see COMEX and LBMA prices going to zero, but physical going through the roof!
It's all about predicting the critical point in the true "Great Rotation", the one from paper into physical.
AND that short count on the graph was when gold was at $1425, imagine now.... it's most certainly even higher.
My guess is when China fucks these guys they won't even get a 'reach around.'
My guess is that China is going to be buying old US Navy hardware in a few years.
There will be no need to fuck those guys, they will simply move in and take over. Voila', the Commies won just like they said they would.
Osama Bin Laden won, das Homeland Security won. I can not remember anytime America won anything but Grenada. I'm still waiting on my Cold War dividend.
China isn't going to report anything! They are happy that gold price are down so they can buy more cheap!
Pretty freaking amazing........wouldn't you say?
<OK everybody to the other side of the boat...............NOW!>
Well, as the JGBs tank, and if the BOJ has to sell a bunch of their gold, it could be prescient. On the other hand, investors fearful of the crashing debt markets may plow into gold (even as others must sell for margin calls) as the last piece of insurance against the plunging fiats sure to ensue.
Paper gold "Banksterium" is a radioactive pseudo-isotope of gold. If it remains unclaimed it is stable. If delivery is requested, Banksterium rapidly begins to decay releasing deadly gamma radiation into the financial system.
When Banksterium fully decays its daughter element is not gold, but highly toxic mercury which poisons the surrounding economic environment for decades
Not correct, it is Tungsten that remains.
Paper tungsten? That's adorable!
I advocate a sand based monetary system. Sand is plentiful, thus sufficient to cover all outstanding paper obligations, plus it's divisible right down to individual grains, so it can be a medium of exchange for small, as well as large purchases. The best part though, is the supply is constantly growing through desertification, thus matching expansion of the money supply. What's not to like?
+JPY100<<<110<<<120<<<145<<<WTF
thanks for the lol
Equities and gold should be moving together I agree. That's why I didn't advise following my treasury bet: I had an ending in mind but not any data to support it. It was so ridiculously "out there" I had to go for it. "and I feel the blow back." trust me...I won't draw attention to myself next time. Obviously we're talking almost zero money on my part relative to the folks on the Street. "the only way to win is not to play" is all I can say. Good luck at the open...
I'm enjoying watching this battle royale play out, my position is small and I don't really care which way it goes. However, my personal belief is whatever inflicts the greatest pain is the most likely to occur...
SQUEEZE THAT GOLD!!!
Sorry, a bit OT: Two of the FBI agents involved in the arrest for the Boston Bombing are dead:
http://hamptonroads.com/2013/05/fbi-agents-died-fall-helicopter-va-coast
Dead men tell NO tales, me hearties:
Sunil Tripatha
Christopher Lorek
Stephen Shaw
Todashev Ibragim
'it could take months to determine the cause of death...'
Nothing to see here folks, move right along now.
Now they know what kind of people they are involved with. Too late for them, but it should be a message for all Law Enforcement and Military personnel out there. When you are used up, you are discarded!
Will they get burial at sea?
Hot tub accidents are so 2012
And suicide in Fort Marcy Park is so 1993... (Vince Foster)
And flying into a mountain in Yugoslavie is so 1996 ... (Ron Brown)
Boating accidents are so 1996 too ... (William Colby)
Burning people alive with FBI hostage "rescue" tanks is so 1993... (Waco)
Well spotted.
And hanging from a London bridge is so 1982 ... (Roberto Calvi)
Boating accidents are also so 1991 ... (Robert Maxwell)
And plane crashes are also so 1999 ... (JFK, Jr.)
And so 2002 too ... (Paul Wellstone)
And giving mere flesh wounds with a shotgun is oh so 2006 ... (Harry Whittington)
Too true.
Too funny.
Z
Note to self: stay away from hot tubs.
especially those in small planes.
They seem to have a lot in common with seal team six.
Wow. Helicopters. You know, bad things can happen in helicopters. Just ask those guys who got "Bin Laden". Many of them died in helicopters. Later. I think they were in seal Team Six.
Engali & Buckaroo: exactly.
Bullshit. Ben has a helicopter strategy that is bulletproof.
regards,
cooter
My brother was special forces in the Amy. They trained all the time just like these FBI guys. They were rapelling from a helicopter for training and a wind gust caused the guy behind my brother to fall on him and push him out the door. He wasn't hooked up to the rapelling line. He fell in the water, he needed medical treatment but it didn't kill him. The FBI did not need to train at such a dangerous height. They must of had a reason for it though. Just like you said Buckaroo, a lot like seal Team Six.
And the last guy was ...
"about to sign a statement" admitting to a role, along with Boston Marathon bombing suspect Tamerlan Tsarnaev, in an unsolved triple murder in Massachusetts in 2011, two people with direct knowledge of the case told ABC News
http://abcnews.go.com/Blotter/fbi-shoots-florida-man-linked-boston-marathon-bombing/story?id=19231642#.UZ17f6KG3j4
I didn't know whether to laugh or cry when I read that.
Where do you get that they were involved in the arrest of Tsarnaev?
Where did you learn to read? It says so almost near the end of the article.
Don't forget that Seal Team 6 helocopter crash...
same skills as devgru, die in helicopter incidents just like devgru
That website is now down - error324. Tin-foil hat time!!
That hamptonroads.com link - one of the only original links mentioning the agents' Boston connection - is currently dead.
lesamourai
Funny how that happens
I love the government and fully support all the decisions made. (spoken into the microphone)
Jeez, it's gotten real blatant. Maybe I'll make time to go shooting today.
And that is how you tell which agents are not crooked and will take no bribes
So long good peoples, we only wish you were alert enough to spread the truth before your dire helicopter "accident"
I don't want no stinkin squeeze. I don't want to hear how XYZ hedge fund manager made a killing by bottom picking the GLD. *
* Unless the short squeeze triggers a comex default. Then I want it.
So who's on the other side??
Me, bitchez.
Also the Cartel, who are now net long, from what I hear.
Yeah me too, bitchez.
This is a direct attack on GLD and IAU, the biggest gold ETFs. This will force them to dump metal on the market driving down the price. The banksters win and shareholders get screwed.
What metal? The gold defaults have already begun.
Are you calling MFG a default? They're merely very very late on delivery. I have confidence that they'll deliver in seven or ten years when the German repatriation is complete.
ABN Amro was clearly a default on their customers.
The media is doing its part:
MarketWatch :
Gold will not make a comeback
Gold has been beaten down hard after soaring to over $1,900 an ounce, and some investors think that the time has come to get back into the metal. However, there are simply too many negatives to see much upside here.
Gold will not make a comeback.
Don't be fooled: Gold is no currency
Gold bugs have been spinning yarns about how gold has become a de facto currency, writes Michael Casey. But those stories haven't held up.
Don't be fooled: Gold is no currency.
Remarkable. These people are financial reporters, yet completely ignorant of the history of gold as a monetary metal? I think not.
Or in the infamous words of Scotty: I'm givin' it all I got Capt'n.
She's breakin' up Capt'n.
I think I can save her, but we're going to have to blow the core
Kirk: Blow it, blow it, blow it!!!
Kaboom!!!
Nod to Thepigman, who pointed out, gold price goes down when JGB yields go up and vice- versa.
crimex will mean max pain for the criminals. real gold owners are unimpressed.
Oh boy. Are we at the paper Waterloo? I sure hope so.
Lol, Gold shorts going to get their accounts nuked.
See Trading Places ending for reference.
TURN THOSE MACHINES BACK ON!
9" http://www.youtube.com/watch?v=nGvKpl4yC1A
The Jim Rickards war games scenario, right?
I mean, just good insight, or preconditioning? It does seem like a reasonable scenario, but I don't see why China would bother announcing at this point; they can just wait and allow the shitstorm to start somewhere else.
But shit, if they could do it tomorrow night to make this a nicee long weekend, what the hell? We beat 'em in WWII, cheerio lets do it again!
hmm....i'm gonna go check on that.
Short the paper, buy the physical.
gbr
That is EXACTLY!!! what I have done...thank you fofoa for the insight to do so...he called this in DECEMBER!!! Gold is going down and when it gets so low that no one will deliver, the market BREAKS and the whistle blows and it is RESET TIME!!!
If you 'get' this you will be one of the world's new capitalist...or at least you will be one of the few that have capital.
Fofoa also has indicated that this could be coming soon. Get some cash, food, lead and friends...I also recommend Remy Martin...but that is a personal choice.
Yes, I too have read FOFOA's vague-ish hints that it could come soon, we will see. Good preparation merits a + 1!
Good Remy Martin warrants a +2. Add in a couple of cigars and your at a +5...
I don't think they're done piling on to the short positions. You know how those fuckers love to huddle on the same side of the boat.
I Like it get as many on the short side as possible the more the merrier
I didn't get the 'is it low enough?' bit until I looked at the chart - gold has stood up surprisingly well (not surprising to ZHers of course) considering the abusive torrent of paper shorting. There is something in the air...
Nikkei is down over 400 points and gold is being shorted like never before. Is this the final shaking out of weak hands before shit meets fan?
I luv it! massive hedgetard shorting and they still can't break the lower rising long term channel... and it's just like these cock suckers all huddled up around wall street to have faith that the Bernank will cap gold and push it lower. Guess what bitchezz there's a whole wide world outside wall st and the NY Fed.. keep shorting it please by all means... pile in bitchezz!!
We are not in a normal market!! This is not a short squeeze. This is the end of a 25 year effort to suppress gold so certain goals could be accomplished. It is done now. The paper markets are winding down. GLD is emptying (inventory down 25% in 4.5 months.) (me shouting) No one will deliver gold at these prices. For the paper market to work some physical MUST flow. It isn't...at least not in size.
Get what is available, then get the pop corn.
This is NOT normal people.
Look at what the US Mint is selling gold and silver for. Their prices are nowhere's near as low as you'd expect given the 'market price' of gold and silver. The Gold Buffalo proof out tomorrow is priced at $1790.
gold as an anti-funny money store of value is always fascinating and good for ratings, but let's not lose the plot and the real reason for rampant QE currency debasement
Full Metal Jackass - Bernanke Loses His Unwinnable War Against Deflation
http://chartistfriendfrompittsburgh.blogspot.com/2013/05/full-metal-jackass-bernanke-loses-his.html
Squeeze me, please me... (reference, to those late arrivals who missed the 70s: http://www.youtube.com/watch?v=w64KIEsy8xU)
you can't shorting something that everyone will want at the lower price.
That should get 100 up arrows.
BTFD!!!!
Haven't seen that acronym in a while.....
I've been tryin' to!
The delivery is two weeks out and growing by the day!
I've been waiting a month after being told it was 2 weeks.
WTF is going on.
You're buying at the wrong place. the LCS around here has good supply. (I hear) you can walk in, buy. Walk out with the physical in hand.
It's nothing short of amazing that Wall Street has been able to transfer their gigantic short position to the hedge funds during the greatest monetary expansion and record physical buying spree in the history of the world.
Yep...you nailed it right there HM.
They must have just got suckered in, a little bit at a time. The thought they had the Fed all worked out. Sell gold at the open, buy it back at the close. Or naked short selling.