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Are you ready for the fireworks next week?

goingbrokegoingbroke Posts: 1,410
in Precious Metals
In silver, the bullion banks went short another 8,345 contracts or 41.73 million ounces. That's more silver than the entire U.S. mining industry will produce in one year! As of Tuesday's cut-off, the bullion banks (4 or less) are now net short 56,401 contracts or 282.0 million ounces of silver.

These same (4 or less) bullion banks went massively short gold last week as well. The net gold short position by the bullion banks increased by an eye popping 54,089 contracts! That's 5.4 million ounces of gold that the banks shorted in just one week!

These overly massive short positions in the silver and gold markets by the bullion banks will be resolved by only two possible outcomes. Either the bullion banks manipulate a decline in prices to cover their shorts, or they get steam rolled by more and more buyers showing up and they are forced to withdraw from the market.

If the latter occurs there will be no shorts against all the new longs that will pile into the market, and we will have an historic rise in prices for both silver and gold. If the former scenario plays out we will have lower prices for both metals which will shake out the speculators, with the bail out money behind the banks this could be a distinct possibility.

Be ready for either outcome. This next week in the silver and gold markets is shaping up to be a humdinger!
What is your guess?
Many successful BST transactions ajia
(x2,Meltdown),cajun,Swampboy,SeaEagleCoins,InYHWHWeTrust, bstat1020,Spooly,timrutnat,oilstates200, vpr, guitarwes,
mariner67, and Mikes coins

Comments

  • jmski52jmski52 Posts: 22,902 ✭✭✭✭✭
    Those banks must really have strong feelings about the price of silver - they must think that it's ready to crash to zero!!!

    I wish that I had the kind of money that they are throwing at such a bet.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • PerryHallPerryHall Posts: 46,238 ✭✭✭✭✭
    The Asian markets open in 6 hours (6:00 Eastern time). It'll be intersting to see how they react. Should be interesting this week.

    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

  • cohodkcohodk Posts: 19,188 ✭✭✭✭✭
    How do you know they are "long" those short contracts? They may be "short" those short contracts. It makes a big difference.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • goingbrokegoingbroke Posts: 1,410


    << <i>How do you know they are "long" those short contracts? They may be "short" those short contracts. It makes a big difference. >>

    Whatever they have in their shorts sounds like quite a load! LOL!
    Many successful BST transactions ajia
    (x2,Meltdown),cajun,Swampboy,SeaEagleCoins,InYHWHWeTrust, bstat1020,Spooly,timrutnat,oilstates200, vpr, guitarwes,
    mariner67, and Mikes coins
  • KonaheadKonahead Posts: 1,476 ✭✭✭


    << <i>The Asian markets open in 6 hours (6:00 Eastern time). It'll be intersting to see how they react. Should be interesting this week. >>



    the Asian markets (China) appear to be the wild card now and it looks like they can shape this market.
    PEACE! This is the first day of the rest of your life.

    Fred, Las Vegas, NV
  • dino2008dino2008 Posts: 341 ✭✭
    Asian market always seems to open lower on Sun. evenings (as I've watched of late) anybody know why?????????
  • Wolf359Wolf359 Posts: 7,657 ✭✭✭
    Sydney opens first, then Hong Kong - the main event opens at 10pm EST.
    Multi-channel listings of coins and inventory management

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  • dino2008dino2008 Posts: 341 ✭✭
    Open and down a penny as of now ???
  • goingbrokegoingbroke Posts: 1,410
    Gold $1,008.20 $1,009.20 2.80
    Silver $16.73 $16.78 0.08
    Platinum $1,314.90 $1,324.90 3.20
    Palladium $290.80 $295.80 0.30

    Updated:9/13/2009 6:16:48 PM CST
    Everything is headed up! UP! UP! except that Palladium stuff only .30! They must not like that stuff!
    Many successful BST transactions ajia
    (x2,Meltdown),cajun,Swampboy,SeaEagleCoins,InYHWHWeTrust, bstat1020,Spooly,timrutnat,oilstates200, vpr, guitarwes,
    mariner67, and Mikes coins
  • dino2008dino2008 Posts: 341 ✭✭
    I hope so !!!image
  • dino2008dino2008 Posts: 341 ✭✭
    You are most correct GB .... silver up 5 cents as of nowimage
  • Wolf359Wolf359 Posts: 7,657 ✭✭✭


    << <i>You are most correct GB .... silver up 5 cents as of nowimage >>



    Hey man, it's gonna go up and down in wild swings, it's a very volatile market. Relax.
    Multi-channel listings of coins and inventory management

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  • goingbrokegoingbroke Posts: 1,410
    Metal Bid Ask
    Gold $1,008.90 $1,009.90 3.50
    Silver $16.80 $16.85 0.14
    Platinum $1,314.00 $1,324.00 2.30
    Palladium $290.80 $295.80 0.30

    Updated:9/13/2009 6:48:21 PM CST Silver UP 0.14! and climbing! Still no action with that Palladium stuff though.
    Many successful BST transactions ajia
    (x2,Meltdown),cajun,Swampboy,SeaEagleCoins,InYHWHWeTrust, bstat1020,Spooly,timrutnat,oilstates200, vpr, guitarwes,
    mariner67, and Mikes coins
  • dino2008dino2008 Posts: 341 ✭✭
    imagegot caught up in the hype
  • goingbrokegoingbroke Posts: 1,410
    Metal Bid Ask
    Gold $1,009.00 $1,010.00 3.60
    Silver $16.80 $16.85 0.14
    Platinum $1,312.10 $1,322.10 0.40
    Palladium $290.80 $295.80 0.30

    Updated:9/13/2009 6:51:26 PM CST
    Many successful BST transactions ajia
    (x2,Meltdown),cajun,Swampboy,SeaEagleCoins,InYHWHWeTrust, bstat1020,Spooly,timrutnat,oilstates200, vpr, guitarwes,
    mariner67, and Mikes coins
  • OPAOPA Posts: 17,124 ✭✭✭✭✭

    Gold investors warned to liquidate after 'buying frenzy'
    London's leading gold forecaster has advised clients to liquidate holdings of gold and silver until the latest speculative fever abates, warning that futures contracts on New York's Comex exchange are flashing warning signals.

    John Reade, an analyst at UBS, said the number of "net long" positions held by speculators reached 29.02m an ounce last week, a record high.

    Kitco

    It's gonna be a wild ride...hold on to your wallets....
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • goingbrokegoingbroke Posts: 1,410
    It also says "However, chartists say the technical signals are entirely different this time. Gold appears to be breaking through a "triple top",
    which could push prices much higher"
    Many successful BST transactions ajia
    (x2,Meltdown),cajun,Swampboy,SeaEagleCoins,InYHWHWeTrust, bstat1020,Spooly,timrutnat,oilstates200, vpr, guitarwes,
    mariner67, and Mikes coins
  • goingbrokegoingbroke Posts: 1,410
    Another ploy to free up some of the yellow stuff! I have said this before and I'll say it again...if you have it hold it don't worrie about short range gains, or losses. as history repeates its self time and time again. The only way I would consider selling my holding at this point would be if the market hit 1500.00 @ oz and then a little voice would be screamming in the back of my head saying NO Don't Do IT! Gold is the stuff dreams are made out of and it's the stuff that keeps you in the game when all else has failed IE.... Paper money,Banks, Goverments etc.... just my honest opion
    Many successful BST transactions ajia
    (x2,Meltdown),cajun,Swampboy,SeaEagleCoins,InYHWHWeTrust, bstat1020,Spooly,timrutnat,oilstates200, vpr, guitarwes,
    mariner67, and Mikes coins
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    With that same logic applied to the number of short contracts 2 weeks ago, the move to $1000 should never have occured. But it did. With a commercial short to long ratio of 3.6 the rise should have been stopped last week. At some point in time the naked shorts with no gold behind their paper contracts will have their bluff called. That's when $1100-$1200 comes. They can line up all the paper they want. But when physical gold gets scarce and the shell game of moving the same bullion around to "cover" multiple contracts gets long in the tooth, it will take a ton of paper to bail those banks out.

    We'll get a new intermediate high this week and next week as well. But there will be some down drafts to scare the weak hands and market timers out. The boyz want to have things in their favor by the G-20 meeting next week. So that gives gold up to 2 weeks to run.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • cohodkcohodk Posts: 19,188 ✭✭✭✭✭
    You're still not seeing the difference between being "long a short" and being "short a short".

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52jmski52 Posts: 22,902 ✭✭✭✭✭
    You're still not seeing the difference between being "long a short" and being "short a short".

    You are either long, or short, aren't you? What's the advantage in paying more brokerage fees to hedge against a position that you've already taken?
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    In the final accounting someone out there is holding the last short. It really doesn't matter who. The housing market tanked because of 50 bets that your house would burn down. And you as the homeowner were the only one that took out that bet to pay insurance to keep your house from burning down. Well the 50 bets won becasue they flooded your basement with gasoline.....but the pay off is not there. It's no different in the PM markets. 50 bets and only one possible pay off.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • BearBear Posts: 18,953 ✭✭✭
    I am ready. I got my tin foil hat on as well as my asbestos fire suit.

    Got a cold six pac of Sam Adams in the fridge and a couple cans of

    Campbell's chunky soup on hand. All I know is we got short, shorts,

    long shorts, short longs and long longs. I have no idea what the hell is

    going on, anywhere, but why should now be any different then all the

    other years.
    There once was a place called
    Camelotimage
  • ProofCollectionProofCollection Posts: 6,258 ✭✭✭✭✭


    << <i>You're still not seeing the difference between being "long a short" and being "short a short". >>



    When you sell a short, someone has to buy it.

    A negative short position would be long. The numbers in the report are positive short positions, which would be short.
  • BearBear Posts: 18,953 ✭✭✭
    I always thought that shorts were

    some kind of underwear. Who knew?
    There once was a place called
    Camelotimage
  • RedHerringRedHerring Posts: 2,077 ✭



    << <i>I always thought that shorts were some kind of underwear. >>



    =================================================

    Now if you're going to start talking about underwear, make it brief! image


    Confucius say: "Panties not best thing on earth. Panties next to best thing on earth".

    image
  • cohodkcohodk Posts: 19,188 ✭✭✭✭✭
    The numbers in the report are positive short positions, which would be short

    No. They are open short positions. Need not be positive.

    If one were to look at my stock account in March or April you would have seen it almost entirely short puts. You would have thought I would have been killed as the market exploded higher in March and April. But you would be wrong. Puts are a bet that a stock will go down. The puts go up when the price goes down. But if the price goes up, the put expires worthless. So I sold these puts and opened the positions. I took in the premium and the underlying stock went up and the puts expired worthless. I kept the premium with very little upfront money needed. Returns are measured in the 100%'s of % annualized.


    Gold and silver will go higher when demand exceeds supply. Not because someone opened 10000 short contracts.



    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • CaptHenwayCaptHenway Posts: 32,238 ✭✭✭✭✭


    << <i>

    << <i>I always thought that shorts were some kind of underwear. >>



    =================================================

    Now if you're going to start talking about underwear, make it brief! image


    Confucius say: "Panties not best thing on earth. Panties next to best thing on earth".

    image >>




    Whenever gold is creeping up, we say that it is doing "The Hanes Maneuver."

    image
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • ProofCollectionProofCollection Posts: 6,258 ✭✭✭✭✭


    << <i>The numbers in the report are positive short positions, which would be short

    No. They are open short positions. Need not be positive. >>



    You still don't see it... When you sell a short position, someone has to buy it. The number on the report reflects the position that someone bought.
  • cohodkcohodk Posts: 19,188 ✭✭✭✭✭
    Absolutely. The person I open it with would be the specialist, who is completely hedged via the underlying or another option.

    The number on the report reflects the position that someone bought.

    So the report says the Joe Smoe bot 100 contracts? Show me please.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • ProofCollectionProofCollection Posts: 6,258 ✭✭✭✭✭
    I think I got side-tracked - your question isn't even relevant really.

    I believe the COT report refers to futures contracts, not options. Someone correct me if I'm wrong, but you cannot sell futures short. At least my two trading platforms do not allow this. You can buy, or you can sell, and you can have a long or short position, but you can't sell a short position - you can only close it out by buying or add to it by selling more. Now you can get involved in futures options, but I don't think this is reflected in the COT report either.
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