GoldTent Oasis is dedicated to our friend and founder John F. Murphy (Wanka) of Key West, Florida without whom this website would not exist. Gone but never forgotten.
ENTER ~ Post by the Golden Rule. Gentlemanly conduct is the attire of the day. GoldTent Oasis is not responsible for content or accuracy of posts DYODD. ~~~~~~~
The comex gold sell off is all paper driven as the record physical buy continues
Analyzing comex data since the price roller coaster began last Friday (Oct 17) indicates that paper shorts flooded the market at record high volume driving the price down. December contract OI dropped as paper longs folded. However, physical gold bought on the October contract continued at a sizzling record pace. Two large players emerge from being somewhat dormant, BofA and Morgan Stanley house accounts, and bought much of the physical gold.
Finally got to watch the other half of this by Michelle M and Andy Schevtman.It got better as it goes on but whole thing on what’s going on now world wide.
There is ongoing demand still going on. He explained how China is flying around to different country’s buying lower grade silver like Dory?? and refining it, going around the comex so not drive the price up while accumulating as much as they can. The LBMA and more, that he hasn’t seen anything like this. Paper trades being usurped in and passed on.
Great upside reversal s , I think on the charts…we await goldielocks interpretation of the Candle Sticks ..
in Elliot terms we have done a classic 3 wave A-B-C down…..which means this is a correction only…now do we do a B wave up, or have we already started the next Impulse wave up….
I was hoping for more of a turn higher, but if we close here, that’s not too shabby.
That Kitco article makes a good point. We have to remember that some of the banks have recommended changing portfolio strategies that now include gold. I know there was a portfolio manager at Morgan Stanley that went to 60-20-20 with that last 20% allocation into gold.
It sure would be nice if this vicious correction is over.
Maddog – yes that’s an interesting take. Does the US actually want the gold price higher so they can revalue? Million dollar question. Maybe as you said, this is big banks circling the wagons to bail out another bank that is over-leveraged with pm shorts at much lower prices.
Could also just be a massive shaking of the tree by some big banks so they can get positioned for the next leg up.
As usual, this smash feels bad because the shares always get hit so hard. 20% on the HUI, more on some of the small caps. Gold is only down 6%, silver 12% or so. Not particularly huge moves, especially for silver. I think we’ve seen bigger moves down percentage wise during this rally for silver.
Good to see gold back above $4100. Maybe we can close the week strong. Stranger things have happened.
(Kitco News) – Gold and silver prices are seeing a long-overdue correction, with silver’s steeper drop highlighting the liquidity gap between the two metals, but both are still under-owned in portfolios, and the structural drivers behind the rally remain intact, according to Ole Hansen, Head of Commodity Strategy at Saxo Bank.
“The risk of correction in gold and silver has been steadily rising in recent days, though exceptionally strong pre-Diwali demand helped support prices,” Hansen said on Wednesday. “However, a very technical extended rally combined with renewed ‘risk-on’ tone across stock markets, a firmer dollar and not least the start of Diwali—which typically signals softer physical demand from Asia—have made traders increasingly cautious, more focused on protecting gains than chasing new highs.”
He said that while the precise trigger for Monday’s dramatic selloff was unclear, gold’s three failed attempts to break above $4,380 “probably helped change the mindset” from greed to fear among precious metals traders.
“What followed was a classic rush towards an exit too narrow to cope with the sudden burst of selling from technical focused leveraged traders and recent buyers finding themselves underwater,” Hansen said.
are the shorts ever in trouble….This is pure guess work….they haven’t been for a very long time, because that was what the US/Fed wanted, so all sorts of shenanigans went on , which never saw the light of day….However the new Admin wants Gold up to offset debt etc, so they are no longer taking part/leading the smashes….which means the shorts are on their own….and as i have said, i reckon a huge short has been put on , to try and bail out an even bigger short well below the mkt.
I guess I mean the banking shorts. It seems like they have a backstop, and I wonder if they ever HAVE to cover. It seems like if they actually had to cover their paper, this game would have ended with much higher prices a long time ago and they wouldn’t be able to trade a year’s worth of production daily.
One thing seems clear though, their Achilles heel is having to come up with the physical metal in mass when longs demand delivery.
It was good to listen to Lanci’s perspective. It has felt like old times the last few days.
Looks like there’s going to be a lot of eyes on NEM earnings tomorrow. You can bet the scum will be on it.
The entire move ends overnight? Should we sell everything then?
I’m trying to remember how the other bulls have ended. I do remember 08’-09’ when Lehman went under and that Sunday night it ran up toward $1K and was reversed by the next morning. I definitely remember silver in 2011 when they smashed it for $6 after they killed Bin Laden, but it seemed like we hung out in the $40’s for a while.
Maybe this IS how it ends. If it’s a financial war, why would China send silver over to the LBMA to help bail them out?
I do know this much, I’m not going to wait another 10 years for the next move or ride gold back to $2500 and silver $25.
When you see moves like this it’s understandable why the miners don’t jump up and start paying big dividends. There’s no security for them.
I’m going to give it a little more time. There’s Fed easing still in front of us and maybe even QE. Hopefully that at least puts a floor underneath prices. The silver market should still be tight. I don’t know.
To be fair, Vince did mention some of the other entities who could be selling … and how secretive they are.
I agree with you that the power of the cretins is quite a bit diminished, but obviously they are still a force to be reckoned with. It’ll be interesting how soon gold can come back … quickly and the shorts are in trouble!
That statement is exactly right. The New World Order that started with the Fed Res Act of 1913, in my view, 9/11/01, attack on the world trade center, has reversed the old NWO, and a new new world order has started. Everything is moving in slow motion.
By the way, Gold was around $250/oz around that day, today its over $4,000/oz. The Fed Res is finished, they did enough damage to cause a reversal. If in 2001 you bought 1000 oz of gold, $250,000, today it would cost over $4,000,000.
Loading ...
