forget deflation .. inflation set to soar .., page-221

Rowingboat posted:

"The concentration by a couple of banks having 80-90% of the short positions is just a reflection of the consolidation in the banking sector this year isn’t it?"

My comment:
No. These were new short positions.

"For gold, three U.S. banks held a short position of 7,787 contracts (778,700 ounces) in July, and three U.S. banks held a short position of 86,398 contracts (8,639,800 ounces) in August, an 11-fold increase and coinciding with a gold price decline of more than $150 per ounce.

"As was the case with silver, this is the largest short position ever by U.S. banks in the data listed on the CFTC's [Internet] site. This was put on as one massive position just before the market collapsed in price."

At http://www.gata.org/node/6510