When The COT Loses

While it is evident that the anti-gold cartel via the primary brokers of the Fed are ravaging the junior brokers through naked shorts, it also apparent that the deep pocketed smart money is starting to demand delivery of physical gold and silver and that they are joined by a growing number of central banks and governments that want possession of their physical gold from the US and British repositories. It is the fact that the CTFC allows what I believe are largely naked short positions by handful of primary dealers in silver and gold that will cause the crisis in physical delivery that will ultimately push the prices of gold and silver to levels far higher than most can imagine. The ongoing ability of the anti-gold and anti-silver cartel to naked short or even short for purely suppressionary reasons the mining stocks and especially the junior miners reasons is not helped by the SEC's foot dragging. When the anti-Gold cartel can not stop the rising price of gold and silver they attack the mining stocks through all of the paper systems at their disposal.The appointment of insider banking executives to the positions such as the head of Commodities Trading Futures Comission (Gary Gensler, formerly of Goldman Sachs) and the new Chief Operating Officer of the SEC enforcement division, (Adam Storch, also from Goldman Sachs) does not inspire confidence that anyone on Wall Street will be "Doing the Work of God."

Zorch and Gensler have the opportunity to make Mr. Blankfein and Goldman's image if in fact they do what is right, ethical and in the interest of fair trade and markets, which is to elminate naked shorts, super concentrated shorts, and completely loppsided massive position limits by a few banks. When this happens, expect prices to moderate to where they should be naturally without supression and large scale manipulation. In the meantime, the battler rages. Here is a post from sinclair.

When The COT Loses

COT loses when it takes on governments.
COT loses badly when it takes on persistent governments.
COT gets creamed when the US dollar trades below .7400 and persistent government are persistent.
COT expires when delivery problems occur on any futures exchange, the dollar trades under .7400 and persistent government persist.

COT does the death rattle when COT takes on persistent governments that do persist, the dollar trades under .7400, delivery problems occur on any futures exchange and there is a run on the bank of ETFs who "own" more gold than anyone could have bought in the physical market, straining ones imagination enough to read the prospectus.

Junior precious metals shares and junior producers do their 1980 thing when the run on ETFs takes place.

Then Christmas comes?

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