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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: jimsioi who wrote (16640)	7/17/2004 11:04:58 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

As Little Joe points out there is nothing unusual about the Commercials increasing their net short position as price rises. It is far more basic than that. For every long there has to be an offsetting short position. Period. If Big specs buy 1000 more contracts and small specs are flat then by exactly 1000 more contracts the commercials will be short. Thay are not shorting so much as acting to take the other side of a trade. I suspect things would be different if there was a limit on the number of contracts that could be in existance. As long as someone can deliver the gold I have no problem with it. If everyone would take physical delivery of gold and silver we would be in one hell of an uptrend but people buy contracts with no intention of owning physical gold and commercials act as the temporary counterparty. Mish