Historic, Mind Boggling Rise In Gold Open Interest Friday

lemetropole's picture

June 25 - Gold $1315.60 - Silver $17.72

"There are no markets anymore, just interventions." … Chris Powell, April 2008


Friday was a historic one for a number of reasons. One of them leaps off the charts this morning in our gold/silver sector world.

Due to the unexpected and stunning Brexit vote, the price of gold began to take off like a cat on a hot tin roof, as you know. At one point gold shot up just pennies shy of $100 an ounce … a price move that my friend John Embry has long said is needed to show The Gold Cartel is in the biggest of trouble. How close that came. Course, the real deal $100 up day has to be on a closing basis.

The jolting uncertainty over how that vote, and developing ramifications, will affect the world economic scene created a surge of interest in gold as the go-to fallout investment play. Zero Hedge reported that on Friday Google showed something like five times the normal hits on gold as a subject matter.

It seems that interest also reverberated into the investment arena.

The gold and silver open interests are tallied on a daily basis. A "Preliminary" tabulation of their changes is usually posted late in the evening with a "Final" number posted mid-morning the following business day. At times the two numbers can be noticeably different, but for the most part, they are in decent sync.

Well, the "Preliminary" gold open interest just released revealed a mind boggling rise of 59,379 contracts to 628,885. The August contract alone was up 49,124 contracts. Throw out the window any over the top adjective you want to describe that number, and what took place on Friday, and it would not do it justice.

A big increase in the gold open interest would be in the 10,000 to 20,000 contract range with a 25,000 increase really registering on the radar screen. For that number to go up nearly 60,000 contracts puts it into seismic earthquake category.

Overnight the gold open interest shot up into multi-year high territory by a huge margin, the latest high being around 608,000. Gold’s all-time high number is around 650,000 when prices were FAR higher than they are at the moment.

Meanwhile, to add to the drama the silver open interest, after soaring into its own all-time high territory by a SIGNIFICANT amount this week, went surprisingly down 636 contracts to 218,343. My expectation was that it would have gone up sharply once again. Scratching head time on that score. However, it is important to keep in mind the silver open interest was already 10% over its latest all-time high number and 15% over its older all-time high set a few years ago. And that is with silver prices in the DUMPSTER!

An explanation perhaps. Thursday is First Notice Day for the July silver contract. The July OI went down 3603 contracts with some spec longs deciding to take some profits ahead of exit time … especially considering the way the silver price was under such obvious JPM/Gold Cartel control on Friday, with the price of gold going bonkers at the same time.

The bottom line: the silver open interest is in all-time high territory, and gold is on its way there, with the prices of both precious metals artificially suppressed to very LOW levels. Simplistically, the gold price is less than half of what it would be if it had kept up with inflation in the U.S. and silver is nearly 1/3 of a price it was able to reach 36 years ago.

The current gold/silver prices of $1315.60 and $17.72 respectively are only that low because of the relentless efforts of The Gold Cartel forces. That their open interest numbers are skyrocketing with prices so low strongly points out the increasingly desperate situation THEY find themselves in.

More simplicity…

*The world financial situation is in a precarious state.
*Quantitative Easing and low/negative interest rates have been undertaken by the world powers to stimulate world economic sluggishness.
*Those efforts have really become stale in the tooth.
*Gold is a barometer of U.S., and world, economic health. Down is good, up is bad. Way up is terrible. Thus the gold price is suppressed over and over again thanks to the elitist/establishment world.
*Silver is allied with gold. It has been put in the penalty box along with gold because a noticeable price dichotomy between the two would attract too much attention to what and why The Gold Cartel is doing to the price of gold.

There have been signs all year that this Gold Cartel is reaching a Tipping Point in which they will be unable to carry on and be effective at the current artificially low gold/silver prices … that they are going to be forced to retreat to MUCH higher price levels to continue their operations … operations which might even not be viable in the years ahead.

As you know, the mantra here this year is that gold and silver will never go up again from current price levels until we get a Commercial Signal Failure … which means The Gold Cartel forces short positions are routed by price explosions … with the weakest cabal members, and followers, forced to cover because the financial pain is too great.

The incredibly high gold/silver open interest numbers strongly suggest that Commercial Signal Failures are getting closer and closer at hand. As those failures manifest themselves, the prices of both precious metals will soar. For if a number of THEM are buying, who in the heck is going to be selling? It certainly won’t be the specs, who based on all of history, will be adding to their positions, like they are doing now.

POINT: the jolting Brexit vote is VERY likely to be the catalyst which finally causes Commercial Signal Failures because of the whopping new interest to buy gold (and silver) all over the world. It is going to be just TOO MUCH for the bums to deal with.

So, no matter what sort of counterattack The Gold Cartel feels compelled to launch in the days ahead, it is going to be overrun and fail. As time goes by these last gasp efforts to keep the gold and silver prices artficially submerged will look both pitiful and pathetic.

The price of gold is going to soar this year.

As for silver, been pounding my thoughts on the table all week. What THEY have done to the silver price is probably unprecedented. As a result, it is a coiled spring that is about to be sprung. Once silver is able to penetrate $18.50 on the upside, it will open Pandora’s Box. The price action at times will be similar to what we saw in gold on Thursday with its $10 higher upticks. Stay tuned!

The price action of the gold/silver shares have been screaming all year that mega upside price moves are in the works for the precious metals prices. The correction in the shares have been few and far between. Big Money (perhaps some of the in-the-know bad guy’s own money) keeps piling in. These savvy investors know what is coming down the pike and many certainly have a clear idea that The Gold Cartel’s jig is soon to be up.

If there ever was a time to be all over the precious metals sector, this is it!
So rule, Britannia -- Britannia, rule thyself


Submitted by cpowell on 02:21PM ET Friday, June 24, 2016. Section: Daily Dispatches

By Chris Powell
Journal Inquirer, Manchester, Connecticut
Friday, June 24, 2016

http://www.journalinquirer.com/opinion/chris_powell/rule- britannia----br...

Recognizing that the objective of the European project, ever-closer political and economic union, meant the destruction of democracy, sovereignty, and the country's very culture, Britain has voted in a great referendum to withdraw from the European Union.

The majority arose from a remarkable combination of the free-market, limited-government political right, the core of the Conservative Party, with the working-class political left, the core of the Labor Party, both party cores repudiating their leaderships as well as the national elites.
The result has enormous implications for the United Kingdom, starting with whether it can remain united, since Scotland - - formerly the most industrious and inventive province in the world, now perhaps the most welfare-addled -- probably will make a second attempt to secede, figuring that free stuff is more likely to flow through continued association with the EU than with England, which is growing resentful of the freeloaders up north.

But there are enormous implications for the world as well. The EU project never has won forthright ratification by the people of its member states and indeed has sometimes refused to accept rejection by them. Indeed, the whole EU government is largely unaccountable. So the British vote quickly prompted demands for similar referendums in France and the Netherlands, where conservative populist movements have been gaining strength.

The politically correct elites are portraying the British vote as a "xenophobic" response to free movement of labor across the EU and particularly as opposition to the vast recent immigration into Europe from the Middle East and Africa. This immigration is widely misunderstood as being mainly a matter of refugees from civil war. In fact this immigration has been mainly economic and it has driven wages down in less-skilled jobs while increasing welfare costs throughout Europe, which explains the British Laborite support for leaving the EU.

But it is not "xenophobic" to oppose the uncontrolled and indeed anarchic immigration the European Union has countenanced. For any nation that cannot control immigration isnt a nation at all or wont be one for long. Since most immigration into Europe lately has come from a medieval and essentially fascist culture and involves people who have little interest in assimilating into a democratic and secular society, this immigration has threatened to destroy Europe as it has understood itself. Britain has been lucky to be at the far end of this immigration, but voters there saw the mess it has been making on the other side of the Channel. They wisely opted to reassert control of their borders.

Their example should be appreciated in the United States, which for decades has failed to enforce its own immigration law and as a result hosts more than 10 million people living in the country illegally and unscreened. Fortunately few of this country's illegal immigrants come from a culture that believes in murdering homosexuals, oppressing women, and monopolizing religion. But the negative economic and social effects here are similar to those in Europe and properly have become political issues.

The main lesson of Britain's decision may be an old one - - that nations have to develop organically, arising from the consent of the governed and a common culture, and that they can't be manufactured by elites. Having defended its sovereignty and indeed liberty itself against Napoleon and Hitler, Britain now has set out to defend them again. So rule, Britannia -- Britannia, rule thyself.

The nations not so blest as thee
Must in their turn to tyrants fall,
While thou shalt flourish great and free,
The dread and envy of them all.


Chris Powell is managing editor of the Journal Inquirer.


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Maestro Maestro's picture


Exterminate all central bankers and upper management and major shareholders of all banks NOW before they kill us.

Exterminate all treasonous military, intelligence and police types before they attack us or start a war with a dangerous opponent like Russia or China.

Neutralize their assorted serf-dogs before they bite.

Then, abolish fraudulent paper markets which the elite manipulate to establish false prices. Start anew by creating a non-profit national banking system based on real assets like gold and silver, to serve people's financial needs.


Dragon HAwk's picture

Don't Worry Mr Elites, I haven't told a single soul to invest in Gold Just in Case......     /s

frankly scarlet's picture

We will see after the Brexit dust settles what the price of PMs does as economic fundamentals and the power to intervene has not changed much and the flight to safety is still largely with the USD and US debt paper and not as heavily into PMs or the Chinese yuan in ratio. It may be coming but not yet IMHO.

CHX's picture

To put the +49k contracts into perspective, that's roughly 150 metric tons of (paper) gold. All a few of the longs (would) have to do now is stand for delivery to finish this farce... As long as that does not happen it is S.O.S.: "Plus ca change, plus ca reste la meme chose"

bookofenoch's picture

Love GATA!!! Murphy, Fitts, Powell, Weir....

They led me to the light

BobEore's picture

"Shorts forced to cover" is as hoary a mantra as the notion of a return to the gold standard - or that the "Fed" and the bullion banks are conspiring to keep gold low so as to protect the dollar. The only 'cover' being forced, in other words, is the cover up of who is responsible for shorting gold - and why?

"No markets - only interventions." With that simple premise,you could, if one wished, unravel the whole scam. Who intervenes? Poor ol Bill Murphy/Chris Powell and Co will be the last to know! Guys who never caught up with events post 2011. Geezers. Writing dopey hopey missives to younger geezers.

Yesterday, in the aftermath of Brexit, we were treated to the left hook of the consensus trance storyline - the usual effort to connect events in London, that financial centerpiece of the moneypower, with imagined events in the far east. All to create the fiction of a battle between forces suppressing precious metal prices and those which will "liberate" them. An effort easily dispensed with, by simply counterposing bluff and bluster with recorded fact.

Today, the right hook - ye ol "open interest" - about as powerful as a Harvey Organ rundown of warehouse movements. The "shorts" are the same entity as the "longs" - the reputed bad guys of the storyline are the "strong hands" holding all the cards with silver, and most of them with gold as well.

While we are waiting patiently for Squidsy to offer up any kind of proof supporting his desperate bluff about the SGE - or a concession speech instead, it will serve once again to remind - all the reasons for identifying China as the entity which is doing the manipulation - and the reasons for so doing, have been laid on the table for inspection. Throwing octupi onto the ice to simply slow down the pace of the game is not going to work any more, any more than kids playing with their buttons!

All that is left to discuss is the mechanics of it all. When folks stop hiding behind their screen of bluff n bluster, and realize that the jig is up. Till then - this is "ShortyLong" reporting the real story. Behind all the camouflage and comical ostrich imitations - of "mind boggling" dimension.

doc333's picture

Can't believe I just wasted 1 minute of my life reading this gibberish..........

BobEore's picture

Which gibberish was that Doc? Did you write yourself a goodbye note with shaving cream on the mirror before dropping those O/D pills - agin?

Time to lighten up man - judging from your avatar - maybe overtime/; Relax - kick back, enjoy the show!


Speaking of which,  time to sum up, as today's segment draws to a close - in my part of the world!

Since perp #1 appears to have fled back to his inky hole of darkness - with no defense offered, we can conclude Mr Puppet is guilty of having not just let the side down by lighting his shorts aflame - but has permanently dicredited TEAM TRANCE by making incorrect statements about the SGE - and refusing accountablility for such indiscretion. Judgement - 3 more years in limitless gold doldrums for thee!

And as perp #2 is unlikely to ever offer up any excuse at all for simply making up shit - out of sheer frustration of seeing TEAM TRACE being battered to hell one more weekend, let their fate be a reminder to all those who would take the route of those shemale mud wrestlers and b-boyz here who desecrate the principles of real FIGHT CLUB by groping below the belt and hurling any ol thing what comes to hand. Judgement - three years of no contact with any one other than fellow barking mad "stackers" - I know that will sound excessively harsh to some - but an example must be made!

Another no hitter - with dazed and confused button boyz left lying on the astroturf unable to understand why the ol majic jus don't work no more!

Till next time ladies n hermaphrodites!

conscious being's picture

BobEore, shouldn't you be hiding under a rock somewhere by now? Just last week you were predicting gold would crash. The modern world is full of shameless people.

BobEore's picture

The modern world is full of shameless people.


Sure nuff is!

I can just imagine the work you have cut out for yourself - finding and supplying us with the evidence - ANYWHERE - ANYTIME - that I can be quoted as saying that. Good luck.

But you'll throw it in anyways, just like Squidsy & co will throw in any ol canard when the facts start to bite. All these expediencies - used to achieve short term relief from the exposure of YET ANOTHER  lie,

come at the cost of long term cred corrosion. Just last week I predicted the continuance of  "the rage, the acrimony, the slanders, the misdirection AND  - limitess[yet futile] efforts to "degrade the message by discrediting the messenger!"

\and boy! - you have come through with flying colors! Shouldn't you be crawling back under a rock right now - o SHAMELESS ONE?

Speaking of which - Day 2

Shanghai's contracts are not 'options' - at the end of the contract period you pay the balacd and take the physical bullion. Theres no option to sell the contract back into the pool and get your deposit back +/- the price shift since purchase

Watchin the line -for evidence with to back up that particular Hail Mary!

Local fire department reports that a Mr S. Puppet has suffered "an incendiary event involving the lower level of his garb" - which I take to mean a  pants on fire incident! Hope there's no third degree burns there Squidsy!

Rocks for All! And all for Rocks! Lob n run for cover!

BobEore's picture

watching the line...


waiting for either party to back up their bold faced Lies with hard evidence

or come clean and admit to shameless disregard for fair play and honest debate.


Conscious abettor[of the moneypower] and Mr. Sid "Squid" Puppet - where are you??????

Put up or permanent shut up time!

Flying Wombat's picture

Swap Lines To Prevent Market Crash Next Week, But Major Pain Ahead – Eric Dubin


U4 eee aaa's picture

this would probably be significant if those contracts weren't just pieces of paper on which people can't even stand for delivery

Latitude25's picture

Why would the shorts be forced to cover since there are no longer any markets, only interventions?

illuminatus's picture

What you said!!!!!

But for some reason most people just don't get that fact.

Squid-puppets a-go-go's picture

because you can still lose plenty of money on those interventions, and becasue the interveners still need a mechanism that gives the 'appearance' of a market to dumb money

BobEore's picture

Wrong agin!

Can't "lose money" when you are in control of the market price setting mechanism. You bid up and bid down with equal alacrity according to the needs of the moment. And the "intervenors" being of such high net worth[think sovereign entity]no coverage worries exist anyways - 400-1 leverage is possible when you have that kind of pull. The profits from which are staggering. Sell paper profits for physical product, rinse n repeat daily.


That's the "simple truth" as opposed to Chris's "simpleton" truth. But let's hold that thought Squidsy - and back up the truck - to your last faux pas before this one. You can provide us with a link to back your claim about the unique non-transferable nature of SGE contracts - or simply admit that you threw that canard out in yet another desperate effort at damage control.

And just think - you were so close to getting onboard at last!

for silver, certainly the run was already on, china and jpmorgan being todays hunt brothers

It's your call - but accountability is inescapable.

Fisherman Blue's picture

Canadian government has no gold

oncemore's picture


They have one oz left (they declare).

Latitude25's picture

I've been following the India gold monetization scheme since its beginnings and GATA occasionally publishes India Times articles related to how successfully/unsuccessfully it is going.  This author also has a lot to say (right and wrong) about this scheme.


BobEore's picture


it's kind of interesting that you phrase your take on Jeff's BB piece -" (right and wrong)"

because I've been trying to puzzle out his apparent schizophrenia -or- devolution regarding Asia and gold for a while now. If you take this(from 2014)insightful commentary on the "new" SGE, for instance, and put it against a piece from only 3 months later which appeared on ZH as China's role in the global(paper)silver market - the dissonance is remarkable. From thrill to shill in no time! He's all over the place in other words.

But that's a common problem with pm analysts who don't live in Asia - they want us to believe they can get the pulse of a place which they visit only via keyboard and screen. If you managed to plow thru either of those two stories I forwarded yesterday - https://storify.com/SuaveBel/puppet-banks-puppet-press-puppet-governments -or- https://storify.com/SuaveBel/big-gold-s-media-minions-activate-the-turki...

then you can see some of the pitfalls which result from that approach. In your travels thru Asia, I'm almost certain that you will have discovered the same dynamic as myself - that the natural naivete of the westerner in the face of storied "oriental inscrutability" leads to many misunderstandings - some comic - some fatal. It seems to take most of us years to adjust, and get acculturated to the societies where so much is going on that is invisible to the westerner.


Latitude25's picture

Regarding India, I was married to an Indian for 18 years and lived overseas for much of that time.  Indians have a religious affinity for gold that is hard to break.  The real question with Indian gold monetization is what is defined as "successful" since obviously all Indians are not required to participate for a successful outcome from a banker perspective.  How close this program is to "successful" I really don't know at this point but India Times articles so far have indicated failure.  I suppose it's just wait and see but meanwhile western panic may eclipse the Indian monetization.  The dynamics are interesting and very opaque.

BobEore's picture

I think it fair to say that - in real terms, the application of what I have called "the Turkish model" has been an abject failure in India, for the powers behind it's creation. In some ways, that's a reflection of the relative "backwardness" of the financial system there. Where the Turks have now been fully integrated into the modern banking system - they love their plastic and are busy racking up huge personal debt with it -

in India, hundreds of millions have never even been in a bank - let alone keep assets in one. If the program was designed to convert the middle classes into holders of paper gold products there however, it equally failed to resonate, for the opposite reason - Indians of a certain middling wealth bracket are more sophisticated than the equilvalent Turk - in giving no credence to the lies of their governmental authority! So the grand success which Ankara has had in transferring huge amounts of the under the pillow savings of their citizens into the coffers of the Central Bank - via their lying & thieving retail collaborators - has not been duplicated in India.

However, the World Gold Council - directly implicated in creating and pushing the scheme whereby real gold gets transformed into a paper ledger tally - will doubtless be already tinkering with the model so to improve it's application in the target Asian countries where gold is huge. Kind of mindboggling - no? - a body supposedly advocating on behalf of 'gold demand' is the mechanism by which gold demand gets suppressed - and nobody knows the difference@@!

Latitude25's picture

How can a central bank lose money if it can print unlimited amounts?  Until it loses credibility it can print all it wants.

techpriest's picture

It's not a good ZH article without this comment :D

Bay of Pigs's picture

I believe Chumbawamba was the first to coin the phrase here at ZH.

lakecity55's picture

I think so, too-- and it is not an official ZH article unless it includes THAT line somewhere!

slimycorporatedickhead's picture

Back the British Pound with Silver!!!!!


Nope, every fucking comment - vertical string, one letter per line. Fucking sucks. Good article, though.

stacking12321's picture

hey silvergeddon, you're right, you should stay away from bitcoin.

it's not for the technologically challenged.

Dolar in a vortex's picture

Your comment reads in a normal horizontal fashion for me, as do the others.

bonin006's picture

He's trying to read it on a 1 inch wide screen.

Max UK's picture

It happens to me too, when I use certain computers. I think it depends on what browser you use.

oncemore's picture

no. it is a subject to your screen resolution. AND font size.

just try ctrl + "-"  and then back ctrl + "+".

If you have 4:3 it will be very different with the same font size, like 16;10......



Max UK's picture

I also find, that depending on the browser, voting is either a simple affair, or it triggers a time-consuming refresh of the whole page.


First article where I can post hopefully without everything vertical stringing one letter at a time - hey, Tyler - get some better hamsters to run in the server power wheel - this transition sucks, weeks later.

techpriest's picture

Fun exercise - divide the price of a house by the price of gold, and you get the "gold price" of a house. Divide the price of an ounce of silver by 5.5 to get the value of a silver quarter.

Now, look at historical prices and you might notice that there is a channel of the actual purchasing power of gold and silver. We're about mid-channel right now. The time to buy was 6 months ago.

Latitude25's picture

In case you haven't noticed we are in uncharted central bank digital money creation territory now.