With the large gain in PMs on Friday, it looks like the “manipulators” in London and New York are going to take that market down to prevent continued gains. This is based on the fact that the chart has just shown a minute downturn immediately upon entering London. The “crystal ball” is continually tested here for accuracy. The outcome will be interesting.
I also agree that someone with really deep pockets could raise havoc in these markets.
Picture a sovereign wealth fund buying millions of shares in the GLD fund and then asking for delivery? It is important to note that if you own 50,000 shares of GLD you can redeem them for physical gold. It's right there in the contract and it amazes me that no one has called the GLD on this option in a big way. Rest assured that if TSHTF, there will be thousands of owners attempting to get their gold from the criminals at GLD and this will force the price of gold much higher fairly quickly.
Paulson’s hedge fund owns over 21 million shares of GLD. He is the single largest shareholder of GLD. George Soros holds over 300,000 shares of GLD and either of them could redeem for physical gold if they want to.
Wow what a raid! The December open interest fell from 97,808 contracts to 35,289! Yeah 62,529 contracts were rolled or sold off... Total open interest on the whole strip fell by 27,244 contracts, so there is a large scale manipulation going on here in the gold markets...
Can't wait to see the COT report...
Amazing that the CFTC allows this concentration of positions to continue in full violation of the trading rules.
It seems everyone here has forgotten what CFTC stands for. It has been suggested that it stands for "Crime Family Trading Cartel". Does anyone know if that is correct? Jim Willie has written his latest piece that shows this could be correct for that acronym.
You nailed it! First Notice day is always hit with a wave of selling to force the new holders of futures contracts out of the market.
When prices really start going up, the tool they use is orchestrated selling along with a margin increase. Given the size of the long contracts for December, I would not be surprised to see us creep up dangerously close to $1,800 before the next slap down.
This is a strong part of my options buying and selling strategy...
Sentiment: Strong Buy
Having watched this over time on a daily basis it is quite strange that no public spirited, well funded person has taken a wildly successful opposite approach opposing those doing the manipulation through paper based derivatives to put the manipulators out of business, sort of a mirror image of a socialist oriented George Soros. It certainly seems quite possible because of the regularity with which the manipulation takes place. The PM markets, either in London or New York, take the PM markets down immediately upon entering that time span. London appears to be less of a presence as time proceeds. Of course that would take real time tactics geared to opposing the evil genius manipulators on the opposite end of the trades. WERE THAT TO OCCUR WE WOULD ALL BENEFIT by ushering in a new golden age of real money, which is the basis of liberty. Once only paper gold exists in the hands of the manipulators their reign would be ended, perhaps permanently were they to be visited by the hangman in places that think such a crime should receive that as an appropriate punishment.
Apparently those with the wherewithal to counter PM market manipulation don’t exist because they have all been corrupted by gravitating to paper based derivatives. This oppositional approach is certainly preferable to relying on regulators who not only don’t regulate; they appear to be in bed with the manipulators.
It does seem that those in Asian markets understand what is going on, but their motives are solely profit motivated with no inclinations to put an end to the paper oriented manipulation in western markets. Theirs is solely a limited sneak attack and retreat for the next opportunity, and not one of completely defeating those engaging in PM price manipulation.
For an example of one who has watched this process from the inside, accurately describing in advance what would take place in emails to the CFTC; see accounts of Andrew Maguire, a JP Morgan/Chase trader, who reported to GATA in early 2010 when a take down would happen.
Follow the proceedings of the Spire Law Group, whose $43 Trillion law suit against government officials and the major banks could be another effective approach to ending the corruption in financial market (except for the fact that the courts are also, and undoubtedly, corrupt as well).