Questions and Possible Legal Action

A few questions for those looking at this in depth: Why did three U.S. banks suddenly switch from being long gold to so overwhelmingly short gold (and silver) in one month? Where do these bank’s short positions show up in the regular commitments of traders reports? (Hint: They apparently don’t.) If these U.S. bank’s net short positions are not contained in the commercial category, then where are they? Which banks have the ability to sell that many contracts short on the COMEX without running afoul of the position limits and anti-manipulation checks put in place by the CFTC and enforced by the SEC?

At least one group of investors in California is incensed enough about the bank’s positioning and their apparent manhandling of market prices to look into the possibility of a class action lawsuit. A representative of the group contacted this reporter (and others) and plans to enlist the support of a Los Angeles based law firm there. If they go forward and keep this report informed, we’ll report the details here in future reports.