from tonights Midas report, very bullish COT numbers
posted on
Jun 29, 2012 07:41PM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
The Commitment of Traders Report
Silver
*The large specs increased their long positions by 595 contracts and increased their shorts by a hefty 4,475 contracts.
*The commercials increased their longs by 1,144 contracts and decreased their shorts by 3,799 contracts.
*The small specs decreased their longs by 141 contracts and increased their shorts by 922 contracts.
Gold
*The large specs reduced their longs by 9,804 contracts and increased their shorts by 3,981 contracts.
*The commercials increased their longs by 4,917 contracts and decreased their shorts by 14,614 contracts.
*The small specs decreased their longs by 532 contracts and increased their shorts by 5,214 contracts.
It would appear the specs were bagged again by the antics of The Gold Cartel.
Trader Roger...
a 30% drop in net silver shorts!!! hi bill,
you already know the commercials dumped an amazing 30% of their net silver shorts and are down to a mere 12,000. i just put a stop on my silver futures shorts. they only dumped 11% of their net gold shorts and are still short a shocking 154,000 contracts. i would NEVER underestimate being short 15 million ounces of gold.
best,
roger
Dave from Denver on…
World physical gold buyers
especially India kicked in high gear:
http://in.reuters.com/article/2012/06/29/markets-india-precious-idINL3E8HT2TB20120629
apparently the "afternoon" ex-duty Indian premium was over $15, which is very very rare to be that high and means the Indians were buying hand over fist. *** I queried our good friend Dave on some stuff and he came back with… Ya. Unless the o/i report is wrong, sometimes it is and they make adjustments reflected two days later, yesterday's gold o/i went up 912 contracts. To me this increase isn't the cartel shorting into momentum- buying by black box funds, it's dip buyers making fundamental buys. The computer hedge funds do not buy on days like yesterday. That's bullish. Second, yesterdays silver smash was all about the liquidation of the July contract ahead of 1st notice today. Silver o/i in July dropped 6268 down to 3952. Interestingly 6704 bought/rolled into Sept silver. My bet is that buying occurred late in the day after the SPX rallied back huge. This too is bullish. Furthermore, and I'm sure July o/i wall fall a bit today, but as of yesterday there were still 19.7 million ounces of silver which are funded for potential delivery. Those contracts can still be sold, but it's a lot of silver standing for delivery. I wouldn't read much into yet, but it's definitely something to keep an eye on. Finally, today's action shows what happens when cartel manipulation wakes up the physical buying world in the eastern hemisphere. Indian import ex-duty premiums were as high as $15 last night which means India was buying physical gold on the sell-off driven by the paper Comex very aggressively. China and Japan were also active buyers last night. When these buyers buy, the physical supply disappears.
The U.S./ECB banks have to be careful about the degree to which they hammer the paper price of gold on the Comex/LBMA because actual physical gold disappears when the eastern hemisphere physical buyers buy it.
Obviously today's snapback in the metals was fueled by the news out of the EU summit. A lot naysayers like Bill King of the King report are adamant that the ECB and the FED are done printing. I say that may be true, but that only happens if the ECB and the Fed want to see the banking system collapse. Germany has $109 billion in direct investments, most of it sovereign and bank loans, to the Club Med countries plus Ireland. Most of that would be held by banks AND there would be substantial off-balance-sheet OTC derivative exposure. The real exposure just by German banks to southern Europe/Ireland could well be several hundred billion dollars. With that at stake, the best Merkel can do is put up a really dog fight for her own political benefit. Ultimately she will not go down in history as the person who triggered the EU/U.S. banking system collapse. Same analysis applies to the U.S. banks and the Fed. That is why I believe Bill King and Ray Dalio are wrong about no more printing.
The other interesting point of note - and no one in the media, even the good sources of analysis - have thought about this, but at least Europe is having systemic reform discussions. Whether or not they amount to anything is another matter. But at least the conversation is taking place. That is in direct contrast to the U.S., where not only are the systemic reformation discussions NOT taking place, but the U.S. continues to accelerate its deficit spending and debt accumulation at both the Federal and State levels. Obamacare is a great example. I don't recall which organization put it out (people can google it) but a study was done that went thru the Obamacare legislation line by line and determined that it would add something $3 trillion to the Federal deficit over the next 10 year. I may be low on the $3 trillion but that's the number I recall. To me the EU is way ahead of the U.S. in this regard and it means the next move in the currency will markets will be: 1) dollar tanks 2) euro rallies 3) gold/silver really move higher.