Good old GS. Let us revisit last week's GS gold short coverage form Adrian on MIDAS....seems like a year ago. But hey, who remembers/cares? I wonder what it will be this week?

(That reminds me of the girl who's best friend asked her how her latest romance was going. "Well", she replied, "he seemed so wonderful. He had it all and seemed to have the most incredible friends. But, I just found out he has HIV. Who would have ever guessed? I am just devastated. No one else seems to care though. He just denies it all and everyone seems to believe him".)

In the September 2 session on the TOCOM Goldman Sachs COVERED an absolutely stunning 1,612 short contracts AND ADDED 351 LONG CONTRACTS to bring their long position to 1,049 contracts (a 50% increase in one session!!!!) and their net short position to 2,537 contracts (a 44% reduction in one session!!!). This is a NEW RECORD LOW for their net short position but beats the previous low by 1,963 contracts! This has absolutely astonishing implications for the gold market. GS is running for the hills. Clearly the gold market is headed MUCH higher.