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 Replies: 8 / Views: 1,664 |
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Pillar of the Community
United States
586 Posts |
Most recent gold futures report shows both large/small speculators are heavily longing gold contracts; on the other side of the trade, market-makers/Banksters are sitting on mountains of short position. And the stake is getting bigger and bigger every week. So far, banksters' net short position has reached beyond US$6B.  |
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Rest in Peace
United States
17900 Posts |
Every once in a while I see you post something about "banksters". Why don't you ever make a site available that helps to quantify your information?
I've asked before and never received an answer.
What the heck are you talking about? If it's just about futures, then simply don't respond. Futures are the poor mans gamble in a no limit casino.
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Pillar of the Community
 United States
586 Posts |
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Rest in Peace
United States
17900 Posts |
Thanks for the link and your answer.
I found those charts of interest. Is it possible for you to teach us a little about what those numbers mean?
I don't doubt your sincerity. But I would appreciate what that land slide of numbers actually mean in real world terms.
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Valued Member
United States
311 Posts |
I've wondered the same thing myself  I read the posts and it's like reading a foreign language, I don't understand any of it. I am very interested in learning though. |
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Pillar of the Community
United States
586 Posts |
The linked page is the weekly Commitments of Traders report for all metals. My understanding is, by law, large traders are required to report their futures position to U.S. Commodity Futures Trading Commission every Tuesday. And the data is public; so that we have a chance to see something. This is a huge advantage against other securities like stocks; certainly we don't have any traders report on a stock every week. At least I haven't ever seen one before. |
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Pillar of the Community
United States
586 Posts |
Generally, there are three major category of interest:
Commercial Traders, Large Speculators and Small Speculators.
Commercial Traders include Producer/Merchant/Processor/User and Swap dealer.
Large speculators include Managed Money and other reportables.
Small speculators include Non-reportables. (If only large traders are required to report their position, small traders are probably exempted)
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Pillar of the Community
United States
586 Posts |
The numbers you see in the COT report, are number of futures contracts, short or long. For gold, each contract is 100 oz; for silver each contract is 5000 oz.
Producer/Merchant/Processor/User need to hedge their physical inventory, they will occupy a certain amount of open interest; in a regular basis. Others are just playing paper games as much as I can see. On any trade, there is a buyer as well as a seller. Swap dealer is usually the market-maker to make up the difference.
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Pillar of the Community
United States
586 Posts |
Now take a look at Swap dealers' gold positions: LONG SHORT SPREAD 53,429 112,630 48,096 Total long is 53429 + 48096 = 101525; while total short is 112630 + 48096 = 160726. The difference is NET SHORT of 59201 contracts. We know each contract includes 100 oz gold; so the NET SHORT position is 59201 x 100 x 1250 (let's assume $1250/oz) = 7400125000 us dollars! That's a lot digits; hmm ... 7.4 billion! Wow. How are market-makers going to unwind this position? Before that, I am NOT going to buy any coins! |
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Replies: 8 / Views: 1,664 |
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Posted 03/03/2016 09:53 am
