Report by David Mitchell
12th July 2017

Now I tend to look at many different indicators, technical picture, oversold and overbought metrics, economic macro backdrop, supply/demand metrics etc, etc..  But one of the key indicators not to be ignored is what the bullion banks are doing on the futures markets in silver (especially silver) and gold. Especially considering their unprecedented historical sized positions and the fact regulators are blindly ignoring their illegal activity.

Notice the massive, all-time record spike in short covering on the right-hand side of the chart (see chart below)

Indigo Note : This chart only covers data up to 3rd July 2017, this last week since that date the short covering buying by bullion banks has been on an absolute frenzy.

This short covering, buying back of Silver Shorts at massive profits by the Bullion banks on an orchestrated silver flash crash is the largest on historical records. They have driven their clients to stop loss out of their positions while the banks have not only made massive profits on these paper moves but also allowed the banks and sovereign wealth buyers to accumulate physical at artificially low prices.

This signal by the Bullion banks buying is enormously bullish for silver in the bigger picture!

Now looking at gold below……

 

As PM Fund Manager stated this week….

“Wow.  The hedge funds are almost net short silver contracts again, having had their algos steered into that predicament by the bullion bank market manipulation.  

The fraudulent paper short position in both gold and silver – but especially silver – is many multiples larger than the available supply of physical metal that is supposed to legally back commodity derivatives.  This is evident from the Comex disclosures.

We have no idea what the total net short position would be including LBMA forward contracts and OTC derivatives.  That the entities who are paid by the public to prevent this continue to allow and enable this massive fraud is a tragic commentary on the current U.S. economic, financial and political systems.”

 


ABOUT THE AUTHOR

David Mitchell is a friend and respected colleague of the GBA team.  David has nearly three decades of experience and expertise in the financial markets working for some of the world’s leading international banks; he brings his knowledge and energy to the role of Managing Director at IPM Group.

 

 

 

 

 

 

 

 

Disclaimer: The information contained in this website should be used as general information only. It does not take into account the particular circumstances, investment objectives and needs for an investment of any investor, or purport to be comprehensive or constitute investment advice and should not be relied upon as such. You should consult a financial adviser to help you form your own opinion of the information, and on whether the information is suitable for your individual needs and aims as an investor. You should consult appropriate professional advisers on any legal, taxation and accounting implications before making an investment.

 

 

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