Home > Boards > Commodities > Metals > GOLDBUGS AMEX Goldbugs Index (GC\Z20)

From GATA Bill Murphy's Le Metropole Cafe

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
basserdan Member Profile
Member Level 
Followed By 310
Posts 77,967
Boards Moderated 4
Alias Born 07/06/02
160x600 placeholder
basserdan Member Level  Saturday, 01/04/20 09:07:47 PM
Re: None
Post # of 39848 

From GATA Bill Murphy's Le Metropole Cafe

January 4 – Gold $1552.30 – Silver $18.02

(Friday Access Market closes)

James Mc: 96 shy of 800k


The intrigue in the gold market and gold's price action is a ten right now. Yes, gold rose magnificently on Friday in response to the killing of the famed Iranian general in Iraq, but it had already risen 7 days in a row … and was going up all by itself without the influence of outside market factors.

As discussed so often of late, and presented here as long ago as the end of May, it appears the physical gold supply is drying up and the insiders who know what is going on are willing to take on The Gold Cartel, and are WINNING with their gold play.

Meanwhile, Friday was something else. The gold price action was as positive all day as any day over the last two decades. And yet, the silver price action, vis- à-vis gold, was one of the worst ever. And the share action was abominable considering how well gold fared. The dichotomy of all of that was unprecedented.

So, the mystery builds for Monday. The potential for gold to make a new six year high, off a massive base, is all there. For its price to EXPLODE is all there. At the same time the silver and share action on Friday suggests the opposite.

The intrigue is off the charts. Regardless of what gold does on Monday/next week, the odds of gold making an all-time high this year, and then some, is now a ten too. Increasingly, so are the odds of a Commercial Signal Failure.

Thought you might like to read the latest from James Mc.

James Mc on Saturday…

96 shy of 800k


After yesterday we can pretty much check off the 800k gold OI box. Like horseshoes, at 799,504 we’ll say close counts. The combined gold/silver OI now stands at an unreal 1,033,287 contracts. More absurd is the 12,775 gold EFP’s. I remember saying a couple years ago when gold was in the $1300’s that based on the 1k of cartel shorts per $1 of gold gain we could expect 800k OI At around $1700, and 1 million OI at $2,000. The reality of course is that we have arrived at the higher OI figures MUCH sooner. At 800k/$1540 it has taken closer to 2k of shorts per $1 of gold gain to suppress gold at this level.

A comparison of gold/silver OI’s and EFP’s to other precious metals, and copper is enlightening. EFP’s are from yesterday’s CME report

Gold 799,504 12,755
Silver 233,783 2,528
Copper 265,332 20
Platinum 101,790 352
Palladium 24,006 25

Note the much larger copper market has 1/3 the OI, and a tiny fraction of the EFP’s of gold. The silver OI is nearly the same as copper, and also has gigantically higher EFP’s. Platinum and palladium are downright pikers in both OI and EFP’s.

The only conclusion to make is that gold and silver are nearing an explosive period. The OI’s are going virtually parabolic, and the long/longs taking on the cartel shorts are fearless. There can be no hedge fund, or ordinary Washington General-type money risking a wipeout of this proportion. Whoever the players are have the full faith and credit of somebody behind them. Will they, or won’t they now escalate this battle to 1 million OI?

James Mc

Fingers crossed for Monday.


(sub req ~ Free trial available)

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
Current Price
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist