Congradulations on appearing on CNBC. Takes courage to appear there.
"Wall Street shorts that have terrorized the gold community."
No they haven't. Wall Street cares very little about GOLD. That's even on more reason why it's falling in price.
"We will ask them to disclose their gold short positions because of suspected "anti-trust' violations. They "CANNOT COVER THEIR SHORTS IF THEY HAD TO IN AN EMERGENCY". We think they are short 3,000 tonnes."
Well both of these two statments show a lot. You don't know their positions, and you say they can't cover their positions. So what your saying is that you don't know how they are short, or even if they are short. You quote others people short positions as being the actual amount. I've shorted stock before, while owning the stock. This is a covered short. Have you ever considered that? Maybe the have the actual gold? Maybe they have some locked in OTC options, or futures, with others whom have the gold? As I said before:"If a hedge funds KNOW that there is this large UNCOVERED short position out there, they'd be the first to jump on the GOLD BULL band wagon. Do you really think that they'd give up a large hit?
They could buy option on the futures, at for june 29000 {let say} for $7.3 in volume, and force execution. So they could even flood the whole option forwards to 35000 without much effort, or cost. and just start demanding delivery all the way. Yet they fail to add to the positions. Why. Because Gold is technically at an over premium position. Even more so, since thursday. So what why did gold climb?
"Question: Is gold's price remaining depressed because of a conspiracy to keep it low? Answer: There is no way to know whether or not there is such a conspiracy, but even if a conspiracy exists, it is a very minor reason for the low price. Gold investors are primarily interested in two qualities: 1) gold's appeal as an alternate investment to stocks and bonds; and 2) gold's role as a hedge against inflation. As long as the stock and bond markets are performing strongly, and inflation is decreasing, gold's price will remain depressed, conspiracy or not. The fact that the stock market is currently relying on a tiny number of blue chips to keep it going, while inflation is also picking up very slightly after years of decreasing, makes it likely that these two conditions will see a sharp reversal over the next few years. Once such a reversal becomes clear to the average investor, flows into gold mutual funds will be far more than sufficient to overcome even the best capitalized anti-gold conspiracy."
goldminingoutlook.com
I don't agree that gold funds will see a cash inflow for yeras, or that a correction would even cause a gold increase. Indeed, it may cause a reduced POG. |
