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 Replies: 14 / Views: 2,039 |
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Pillar of the Community
United States
586 Posts |
Last weekly COT report showed that producer/merchant/dealers had increased their short position massively. Their short-to-long ratio have reached a whopping 5.28 : 1 Needless to say, dealers are well hedged; and they must know something is coming for gold and silver.  Edited by leon1998
05/27/2015 08:57 am
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Valued Member
Canada
312 Posts |
Sorry but could you "Dumb" it up abit for the newbee stacker,like myself!
Thanks
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Pillar of the Community
United States
1913 Posts |
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Pillar of the Community
 United States
586 Posts |
@Whitetail Junkie,
Those numbers came from gold futures market which were reported at CFTC.gov on a weekly basis. The numbers are NOT looking good for physical buyers now, due to the unusual large short-to-long ratio.
If I was a dealer, I would try to sell my inventory as soon as possible.
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Pillar of the Community
United States
1476 Posts |
Quote:
If I was a dealer, I would try to sell my inventory as soon as possible . Why? Could you explain a little more for us novices please. |
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Pillar of the Community
United States
586 Posts |
@Dar,
If you plot the short-to-long ratio of Commercial traders in the weekly COT report, versus the gold spot price; you will notice that whenever that ratio reaches above 2:1, gold price also reaches a top. (BTW, producer/merchant is only portion of commercial traders; swap dealers/banks are also commercial traders)
This pattern repeats itself for the past two years, it is quite interesting.
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Pillar of the Community
United States
586 Posts |
For your information, the total commercial traders short-to-long ratio was about 1.95:1 on last Tuesday.
As reported on last Friday, from CFTC
Edited by leon1998
05/26/2015 7:00 pm
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Pillar of the Community
United States
1913 Posts |
Quote:
Their short-to-long ratio have reached a whopping 5.28 : 1 Am I correct in understanding that by this you mean that they've contracted to sell 5.28 times as much gold as they actually have in hand? Therefore, they're going to have to buy gold in order to meet their contractual obligations? So, overall they're betting that the price will go down? |
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Pillar of the Community
United States
586 Posts |
@Bret,
Last Friday's weekly futures report saw a massive increase of 50,754 short contracts by Commercial Traders. It is the equivalent of selling 69% of ALL the gold in COMEX held by the bullion banks and their customers. Sometime in the near future, they have to buy them back, as you said.
And yes, I believe they're betting that the price will go REALLY down. Who would in his right mind, sell this crazy amount if he believes price will go up?
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Pillar of the Community
United States
586 Posts |
An interesting read, http://srsroccoreport.com/something...n-to-silver/More and more people are becoming aware of this rigged game. I am not buying the short-squeeze prediction; because in the past several years, it only occurred once in 2010 due to the QE2 announcement. All the other time, gold and silver dropped. |
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Valued Member
United States
170 Posts |
You have big banks like JP Morgan using these contracts to pull the price down anytime they want as to buy real silver in hand as it's called (Name that price) and it depends on who the seller is and who the buyer is as both may be in on the scam as the spot price of silver is the goal and if you watch all the charts gold etc.. they use the scam there also and why both chart alike.
Do as they do when they pull the price down.. buy like crazy and hold on..
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Pillar of the Community
United States
586 Posts |
Past weekly futures report implied that gold and silver will go lower.
Before FOMC meeting, I am afraid gold will fall below 1180.
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Pillar of the Community
United States
586 Posts |
Wow, gold price is 1173 now
I guess gold will consolidate around 1170 area for a few more days, then gold will be pulled up in the following weeks.
Commercials have been quietly reducing short contracts and increasing long contracts; according to last COT.
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Valued Member
United States
170 Posts |
It seems that if (they) want to hold the gold price down.. then the FED has to pony up some gold to match the sell but the bad thing about this whole story is the gold they pony up is not there's as it belongs to the People of the United States. Did COMEX Just Receive A Physical Gold Bailout From The Feds? http://seekingalpha.com/article/324...rom-the-feds |
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Pillar of the Community
United States
1913 Posts |
Can you please explain how the bailout would work? How would the physical gold get to the individual dealers? Why wouldn't the just have to buy physical gold to cover their positions like happens with stocks?
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Replies: 14 / Views: 2,039 |
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Posted 05/26/2015 5:14 pm
