Much speculation has been made about the huge jump in the short positions in gold and silver put on by the big banks who manipulate gold and silver as reflected in the Commitment of Traders report. Especially given that the gross short positioning of the big banks is well beyond the CFTC’s prescribed position limits. Of course, as everyone knows, the CFTC has never enforced trading regulations against the big banks who manipulate gold and silver futures. This time will be no different.
But there may be some factors that force a different outcome this time. Factors beyond the ability of the western bullion banks to contain. One such factor is an unexpected rush by wealthy investors who are holding their gold in big bank vaults and who decide that it’s time to eliminate the counterparty risk involved with this.
Alisdair Macleod wrote a must-read article describing this factor and how it could unfold. It should be read by everyone who cares about the safety of their wealth: Unwinding Unallocated Gold Accounts.
This may be one of the reasons all of the t/a chartists and COT-watching slaves have missed the move higher in gold and silver over the past two weeks…