Don't know if any of you know the LaMetropole Cafe, but Adrian Douglas is a well known and respected contibutor. Here are some of his recent comments which are very interesting
In the December 27 session on the TOCOM Goldman Sachs COVERED an astonishing 1,722 short contracts and went long 2 contracts to bring their net short to 6364 contracts. This is the LOWEST net short position they have ever held since I have been tracking their position in January 2006. Look at the chart of their net short position. It is quite a sight for sore eyes. Yesterday I hypothesized that the gold price would explode when GS has completely covered or is net long. I estimated this would be between March and July but at this rate it could be in January. This is a gob-smacking rate of covering. This is signs of severe stress in the Gold Cartel. This comes at a time when Anglogold announced they are closing out their hedge book to zero. I long ago stopped believing in coincidences in the gold world. The lid is about to blow off this pressure cooker. This is NOT an arbitrage play as some have suggested. Stay tuned. Cheers Adrian
I couldn't post the chart, but they have reduced they're net short position from over 45,000 in early 2006 to 6364 as of two days ago. Don't you find it interesting that while they are calling gold down in 2008 they are doing the exact opposite for their own account.
The day of reckoning is coming people..... Dont get caught listening to gobbo
