To: dara who wrote (260831 ) 8/11/2018 12:36:19 PM From: dara 1 RecommendationRecommended By
Read Replies (3) | Respond to COTS - If you look at the commercial net short position in gold, it is at a 52 week low.edsteergoldsilver.com Although not a lot happened from a price perspective in the precious metals on Friday, the monstrous volumes in both gold and silver...particularly gold...certainly raised my eyebrows a notch or two -- and I'm not entirely sure what to make of that. But it's a certainty that Ted will have something to say about it in his weekly review later today. The change in open interest in Friday's Preliminary Report showed that total open interest in gold only rose by 5,475 contracts. But I've learned from Ted over the years that it can prove dangerous to rely on those numbers. Total open interest in silver increased by only 282 contracts yesterday. But setting that aside for the moment, it's what showed up in yesterday's Commitment of Traders Report -- and particularly in the Bank Participation Report that is top-of-mind for me. Not only are COMEX futures set up for moon shots in the four precious metals, plus copper...it was the fact that JPMorgan has exited stage left in gold -- and probably the other precious metals as well. That certainly what it looks like when you delve into the innards of yesterday's Bank Participation Report posted above. Ted has mentioned this a few times in the last week or so that JPMorgan is entirely out of its short position in gold -- and that report certainly confirms it. Yes, the banks still hold big net short positions in gold and silver, particularly the foreign banks, but each of these individual banks [with the exception of Canada's Scotiabank] holds very small short positions in all four precious metals, certainly less than 1,000 contracts in gold on average, well under 1,000 contracts each in silver -- and a few hundred contracts at most in platinum and palladium. They won't be in harm's way by much when things do blow up. But with JPMorgan out of the picture across the board, Ted's double cross of the other banks -- and the other large commercial traders, appears to be complete. Now we're just waiting for the "event" that's allowed to set this ablaze.
