A 6th sense after the event....yeah righto A number of subscribers have written in to me asking how I knew to load up with Puts on Thursday ahead of Friday's massive smash in the gold market. The answer to that is that when you have been watching markets and price movements for as long as I have and understand how Big Money thinks and operates, you develop a "sixth sense" for the kind of stunts they can pull. The full farticle here http://www.clivemaund.com/gmu.php?art_id=68&date=2013-04-14
When does a shop maintain a smaller stock than before? Maybe because they expect lower sales? So one can see, the smaller Comex gold stock is here used as argument for small supply of gold and big potential for price increases. But another, and very easy explanation, is that the expected delivered demand is lower. And see, instead the price dropped big. That indicates smaller demand. I now wonder, the Comex silver stock sat on at least a year high as of recently. Based on the same logic, this would indicate that they expect a bigger delivered demand. The next weeks/months will make clear whether that is correct or not. If we see the Comex silver stock drop back to 'normal' levels, then maybe another story is explained.
I hope they do last long enough to swap my vacation money just like in 2012 to silver. Much cheaper silver = more silver.
