Why Are The Banks Long Gold And Silver Futures?

“The banks are very net long gold and silver futures. To the extent that banks can peer at what’s going on behind the proverbial ‘curtain,’ they must see something that has inspired them to take long position in the precious metals.”

Gold is behaving the same way it was behaving in the months leading up to the 2008 financial crisis.  Emerging markets are melting down and transmitting a financial and economic virus that infect the entire world.  The coming financial collapse will be magnified by the enormous amount of visible and hidden debt, the worst perpetrator of which is the United States.

Elijah Johnson invited me onto his Silver Doctors podcast to discuss the bullish set-up for gold and silver, along with the underlying factors that will lead to problems which have motivated the banks to go long gold and silver:

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3 thoughts on “Why Are The Banks Long Gold And Silver Futures?

  1. “To the extent that banks can peer at what’s going on behind the proverbial ‘curtain,’ they must see something that has inspired them to take long position in the precious metals.”
    To the best of my [limited] knowledge, we should see a reflection of the commercials’ position in the range of a few weeks to a couple months from now…with a move in PM prices?? I’m asking. The COT positions historically…haven’t they reflected upcoming action in the framework of weeks-to months? Not this week or next year [unless they stay long]?

  2. Dave, what are your thoughts on the current G:S ratio right now? Yikes! I don’t know how much value/ significance you place on it.But it has just broken a 20yr resistance level with two daily closes above 84! The G:S ratio is currently in a multi decade inverse head and shoulders pattern. Suggesting that silver has further to deteriorate. Seems unbelievable at these prices and I know everything is manipulated but hot damn… But this is the reality in front of us.. If there ever were a time for the commercials to go net long Ag it would seem this would be it. Short of that, on a technical level it’s pretty concerning. Things are so upside down idk how extreme they can take things. Cheers thanks for all your great work.

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