Today’s Motley Fool article points out the big increase in the short interest.
In this particular case, it’s all due to arbitrage on the Northgate deal. Going long Northgate and short AuRico. When the deal is completed, the arbitrageurs will take the AUQ shares they receive from the buyout and use them to cover their short position.
That is really positive for the stock. Since the shorts will have to cover. Holding gold and silver down is like holding a beach ball underwater. The NXG deal is positive. Be aware that is the Treasury selling gold. To hold it down in the wake of the EU Central bank deal. There has been a huge inflow of gold into the USA, from Euroland. Plus G-7 at it's last meeting in Marsillies France, made a deal to covert all the Marsillies mafia cash and bonds into anonymous gold, in exhange for their cash, to infuse into the Euroland banks, at a discount. Which is why they had to send Timmy Geithner, to okay a gold sale for all that paper that need to be laundered, at a discount of 20 to 30% of gold highs. Got to say it worked. That is US Treasury selling gold, and CME raising margins. This may not seem related but look at how far into backwardation wheat is, they are not raising margins on wheat. Gold or silver going into backwardaton, even slightly scares them. Since it would rocket upward, making their currency policies in the Eurozone and USA look like a debt to cash print. Which it is. Exposure or gold sale. Launder paper to gold, bringing that paper on bank balance sheets to meet Basel 3, and form the EuroBank. EuroBank is the goal. Just like the Federal Reserve or Bank of England. It isn't Greece or the PIIGS.