Replies to post #16367 on Value Microcaps Junior Miners

[silver100]

Adam Hamilton delves into this subject in this article today http://news.goldseek.com/Zealllc/1255107600.php

The two paragraphs below pretty much sum up my argument on the subject in question:

"This shatters a common OI myth from the CoT priesthood, that record-high gold OI is always bearish for gold. In its mild form, analysts claim record gold OI levels warn of an imminent pullback or correction. This is certainly true at times. But in its extreme form, I’ve heard analysts claim some particular OI record means this secular gold bull is coming to an end. That is just nonsense. Check out the OI records above compared with gold itself.

Sometimes, record-high OI does precede a correction. Early 2003 and early 2008 are great examples of this. But other times, despite record OI gold soars higher. In mid-2007, gold OI first approached 425k contracts. I remember well CoT analysts at that time claiming gold had to correct hard because OI looked frothy. Yet from those $675 levels, gold soon soared to $1000 in early 2008 (and gold OI went even higher)."