Gold and Silver • Commercials Know $12,000 Gold & $1,000 Silver Are Coming-
Commercials Know $12,000 Gold & $1,000 Silver Are Coming-
But Can They Escape Their Shorts?
The launch into spot price long heaven will not come until the commercials have divested themselves of most of this massive short position and are at something approaching a breakeven point. They know that $12,000 gold and $500 – $1000 silver and beyond is coming and coming quickly but they will not allow it to happen until they have substantially reduced their exposure to death of the manipulative short world as we know it. Besides, they make way too much quick cash by playing it the way they play it but since the Eastern sovereign nations are insistent in gobbling up all the hard assets in the world the commercials know the handwriting is on the wall and it is just a matter of time before their holy cash cow is skewered by Moses and then they have to settle for just being tares in the wheat field.
In my COT reports this weekend, I promised a synopsis and a blow by blow of what happened after the COT reporting period.
People keep writing me and asking how I can make my statements so decisively as to what happens from day to day in the gold and silver markets.
It is through continuous, daily examination of the CME daily bulletins and deep study in the COT reports over years of data that I have gold and silver options trading down to a science.
Once you understand the producer/merchant commercial’s MOs (method of operation) then these things become so clear they are transparent.
It is also transparent to me that the CFTC is a corrupt organization and serves the Treasury Department and not the people or Congress. If I can see this and make great money off it then anyone can see it with significant due diligence and I don’t have the benefit of examining the specific entities that do these trades, unlike the CFTC who has this information at their fingertips at any given minute.
The commercials “lie in wait” until a specific number of longs have been bought by speculators then they pounce, drop the price, and gobble up the longs so they can get rid of their “toxic shorts” (fancy name for metal-less backed derivatives).
When they perform these operations, they are purchasing shorts all the way up on the price rise. We see this clearly in the gold COT at bottom. Then they sell higher priced contracts to drop the spot price super quickly while they deftly cover the toxic shorts as the speculators unload themselves of the longs they just purchased in anticipation of a bottom being in and hoping against hope that this craziness is at end and we are about to see the blast off to the moon.
The blast off to the moon is NOT coming yet. Most people in this industry do not believe me but I accept being right and being ridiculed comes with the territory.
Besides, when silver is $500 to $1000, who cares? N’est pas?
Statistics: Posted by yoda — Tue Jun 12, 2012 12:47 pm
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