Hi AT79... Last 2 days post the 2 daily LBMA fixes, its been the NYMEX (run by our pals CME Group) propping up the GP, a reversal of the norm. Given the historic level of Tues COT shorts, could it be that a major attack on GP is on? Normally conducted in the quiet & slow Sunday eve, but given t/mor is Fri 13th may tickle someones fancy? SGE, after dropping GP pm fix earlier this week (& 1st time I've noted), they've been relatively nonplussed. Question is, who is baiting who, Cartel to dump GP heavily, or is SGE ready to blow open the LBMA????????... OMO, but Methinks tomorrow 13th may just redraw the lines in the sand quite significantly... Courtesy of various sources & pasted below:
A point of interest, the Bank Participation Report from early October of 2012. Recall that price back then was near $1800 (versus near $1300 today) and total Comex gold open interest was 481,000 contracts versus 566,000 last Tuesday 10th may 2016.
Column 1
Column 2
Column 3
Column 4
0
10/2/12 @$1800
GROSS LONG
GROSS SHORT
TOTAL NET
1
U.S. Banks
40,625
146,809
-106,184
2
Non-US Banks
34,881
113,445
-78,564
3
TOTAL
-184,748
Previous week's Commitment of Traders report showed the total NET short position of the Comex gold "Commercials" to be 294,901 contracts. We now know that 66% of this cumulative position comes from accounts specifically reported to be "Banks".
Note that during the price rally, The 24 Banks have not only added massive shorts, they've also sold existing longs. Are these the actions of entities looking to profit from higher prices or lower prices?
Adding together ALL of the 24 Bank positions you get 260,644 contracts. Last Tuesday, 10th, cumulative open interest was 565,774. Thus, as of last Tuesday, The 24 Banks held a stake in 46% of ALL open interest on the gold Comex. Compare that to 12/1/15 when The 24 Banks held 33% of all open interest.
And don't forget, the standard Cartel Shills and Apologists will argue that these altruistic Banks are just performing a public service. They're "making an orderly market" and simply "providing needed services" for miners wishing to "hedge and forward sell future production".
As you can see, we're now three and a half years later and price is over $500 lower...yet The 24 Banks now have a summary NET short position that is more extreme than ever. Will The Banks lose this time? Will they be forced to cover shorts into higher prices instead of lower? Will there be physical delivery failures as gold ownership increases globally? Or will The Banks simply be successful again in rigging prices lower so that they can profitably cover their ill-gotten shorts?
