The CFTC Commitments of Traders report sheds light on a situation that may raise it’s head “shortly”!
With so much going on in the world today within the financial systems across the globe, a good portion of the public has been hammered with media and market speculators screaming to buy gold and silver.
Recently, the CFTC confirmed what many have known for years about the silver market being manipulated by JP Morgan and others. However, does the official acknowledgement stop the manipulation? A glance at the above mentioned report makes one wonder.
Commercial gold positions are surprisingly net short according to data from October 26th. Silver showed net shorts rise in commercials, swap dealers and producers for the same time frame.
Although it smells of a slaughter house that so many have seen before, get the media on board to reach out to the retail buyers, then once invested, pull the rug out from under them. It could easily go the opposite way, but not likely.
Consider the fact that JPM and HSBC hold short positions that would cripple them if the market does not go their way, and these two falling would not create ideal situations for anyone involved, including China.
Profits have been taken by many investors in precious metals lately. If you are one of the early birds, congratulations!
Overall, the outlook on precious metals looks bright for the long term regardless of what happens. Beware of the short term at these levels. All data and analysis points to a sharp correction that could be fast and hard.
The scenario is forming right in front of us… Greece and Ireland appearing bankrupt and may soon need more help, rumors that the QE in the US will not be as high as some anticipate. Troubles overseas mixed with the slight amount of confidence in the American economy (less QE) and investors may run back to the dollar.
Bookmark us, subscribe to our RSS, input your information to the right, stay tuned… it’s going to be a wild ride for the next two and a half weeks!