The CFTC just released its commitments of traders (COT) report at 15:30 ET for trader's positions as of the close on Tuesday, September 27 and the data show a stunning drop in the large commercial net short positions in both gold and in silver futures. Continued For example, as silver fell $7.88 or 19.8% Tues/Tues, from $39.76 to $31.88, traders classed by the CFTC as "commercial" reduced their collective net short positioning (LCNS) by an extremely large 16,446 contracts to show 24,262 contracts net short. This, while the open interest fell by 10,089 to 102,014 open. Just below is our graph for the commercial net short positioning for silver futures on the COMEX. Source: Source CFTC for COT, Cash Market for silver. Not since November of 2008, during the heat of the 2008 Panic, has there been a smaller commercial net short position for silver futures. We can say that as of Tuesday, the largest, best funded and presumably the best informed commercial traders of silver futures had taken the price downdraft opportunity to very strongly reduce their short bets for the second most popular precious metal. We will have more commentary on this unusually large reduction in commercial net short positioning, including a 30,945-contract reduction in the LCNS for gold futures, in the technical graph comments for Vultures, which we intend to complete by the usual time this weekend. (Ed. Note added at 16:35 ET. The last time the combined commercial traders were this "small" on the short side of silver futures, November 25, 2008, the price of silver then was $10.33 the ounce. Therefore, with silver at $31.88 on Tuesday, having tested as low as $26.04 in panic liquidation selling the day before, we can say that commercial traders had about as much confidence in the price of silver going lower as they did at $10.33 silver three years ago. Incidentally, for Vultures, the relative commercial net short positioning also plunged to a very low and usually bullish 23.8% of all COMEX contracts open - the lowest LCNS:TO since October of 2008. (Graph below.) This is a very bullish COT report for silver. Let's see if the market "gets" that in the days and weeks ahead.) Source: That is all for now, but there is more to come.
Realistically, what does this mean? Lower pricing or higher prices for AU and AG over the next few months?
here bix weirs take FWIW The COT numbers came out for the week and were stunning...unless you understand WHY the price of silver was destroyed. The banksters covered an AMAZING 16,446 contracts (82M paper oz) so far on this slam to have them post one of the lowest short position since the November 2008 crash. Here's an excellent article on the situation: http://www.gotgoldreport.com/2011/0...ex-commercial-silver-net-short-positions.html This is since the Thursday cutoff so I'd expect even more short covering at the release of the COT report next week. So why is this happening now? To me it's very simple...the CFTC is going to FINALLY implement position limits and the bankster have to position themselves properly before it happens. This also confirms the fact that the CFTC has been delaying the implementation of position limits TO HELP the banksters get back "on side". They did this to try and not cause a huge disruption in the market...which it would have. So where do we go from here? Position limits will prove to be deadly to the banking cabal because they cap their ability to rig the markets. Not 100% but significantly enough such that silver will be able to rightfully express it's true value at some point without the massive market manipulation. Usually, the banksters short on the way up from slams to keep the price under control but position limits will cause problems for their control mechanisms. Not that it will stop manipulation all together but it will assist the Good Guys with their plan to end the game. The next few months should be a DOOZY for silver so get your hands on as much as you can. If they slam it lower buy more. If they let it rise from here buy more. If the last slam scared you... you now know WHY it happened and it couldn't get much more bullish for silver than the Bad Guys covering a huge amount of shorts on the slam! Silver is on sale today but we can't be sure how long this mega-sale will last! Stock up. Bix Weir
We've got some more decent drops to come yet. Still too many uneducated & teeny boppers buying. The market has to completely wipe them out & demoralise them.
I could believe that this is all about silver market manipulation if the gold price wasn't plunging at the same time.
Yeh Jonesy I'm with you. I want it to to be true, but I'm not buying it yet. Wait and see if there is an announcement from the CFTC hey
What it means is that there are few or really the fewest in years, professional traders betting their money that silver will go lower. Doesn't mean it won't drop though.
Gold as the dollars number one competitor. Historically, since 1971 there has been a 1 to 15 oil to gold price correlation. If oil was $10 a barrel, gold would be valued at $150 an ounce. Today, oil is at $105, and gold is at $940 an ounce. Shouldn't gold be at $1,575 ($105 x 15) an ounce? Why is gold at only $940 an ounce? As the world reserve currency since oil sales were first denominated in dollars at the beginning of the industrial age, the dollar has had one main competitor, gold. Gold, sometimes referred to as intrinsic money, has remained a thorn in the side of the dollar. The value of gold is directly correlated to the value of the dollar. As the value of gold decreases, the value of the dollar rises. Since at least 1994, at least 15 central banks have been conspiring to lower the price of gold by dumping their gold reserves into the market, thereby adding to the supply of gold, which in turn decreases the price of gold, which results in the increase of the value of the dollar. What does this mean? From those who sell gold as a gold coin dealer to those who are slaves in Africa digging gold out of the earth, anyone owning, selling or producing gold is being robbed. Every gold coin dealer has a set percentage of profit on each coin sold. Likewise, every gold producing nation is making a set profit for each ounce of gold that is mined and then sold on the market. The more gold that is dumped into the market the lower these profits fall. Peak world gold production happened long ago. This fact proves that there is only one way to lower the price of gold, and that is from the banks illegally rigging the gold marke
Did anyone notice the drop down to $28.44 on the goldprice.org chart just before the weekend close? A very interesting negative spike. Probably just another fat fingered trader somewhere. :lol:
Interestingly too, if oil is now 102 a barrel, then gold is more expensive than 15x the price of oil. Over-valued? Interesting ratio IMO.
