Traders Cooperative

[basserdan]

This snippet from LeMetropole Cafe is consistant with last week's huge reduction of the COMEX Gold Future's commercial net short positon. #msg-22354879


The Great Escape!

In the August 28 session on the TOCOM Goldman Sachs, with sleight-of-hand that would have made Harry Houdini look like an amateur, wrote yet another chapter of "The Great Escape". They covered an impressive 931 short contracts to bring their net short position to 9,579 contracts. This is another record low net short since I have been keeping records (January 2006).

We are all disgruntled about the current state of affairs in the mining equities, but for those who are disgruntled enough to think of throwing in the towel you need to ask yourself why Goldman Sachs is reducing shorts like they were going out of style.

Why the Large Commercials have massively reduced their net short position on the COMEX, and why some entities are amassing large gold call options. What we are seeing is unprecedented in this gold market. We have seen that the Big Banks have packaged up worthless sub-prime debt and sold it to Asia & Europe like the gangsters who make pay-offs with a briefcase of photo-copy paper and a few genuine $100 dollar bills on the top. We now note that the Bullion bankers are doing a wonderful job of finding some suckers to take on their short positions in gold.

We are not watching the positions of some mindless day-traders whose synapses are fired by a rearrangement of some pixels on a trading screen; we are watching the positions of a bullion bank that is connected to the highest level of global finance. When they behave as if short gold positions are hand-grenades with the pins removed, the best that anyone who takes the other side of the bet might hope for is being posthumously awarded one of my coveted prizes!

GATA has proved that gold is dramatically undervalued and suppressed. Does a growing financial crisis make it over-valued?? I think not!

Cheers
Adrian