Big jump in gold sale spurs manipulation talk (3 US banks w/ 86,398 short positions)

Market Watch ^ | 08/29/08 | Moming Zhou

[M. Espinola]

Keep playing those put options :)

[M-cubed]

U got it!!!...even Greenspam himself understood it back in 1966 ... http://www.321gold.com/fed/greenspan/1966.html

[LurkingSince'98]

“Anyone who holds the same view and has the balls to put their money on the line can take the same position.....”

You may be slightly naive since the big difference is the the government and central banks are not using their own money to bet against those who hold gold they are using OUR money to bet against US.

Lurking’

[jsh3180]

There is a serious disconnect at the moment between the price of physical gold and silver and the price of “paper” metals on the futures exchanges.
Sure, the spot precious metals prices are tracking the futures as they usually do, which with gold is typically about $3 per oz less, for spot gold, than the front month on the futures exchanges.
However, try and buy gold or silver right now from a dealer. Typically a dealer will sell at spot plus a 5% or so premium for his commission and to buffer from the changing prices.
You are not going to have much luck finding physical gold or silver at anywhere close to spot +5%. Most dealers are totally out of supply. Some are refusing to take new orders, some will take orders with the caveat that it might take 8 weeks or more to fill your order. The US Mint has suspended sales of Gold & Silver American Eagles. Rand Refinery, one of the largest gold refiners in the world and the supplier of blanks to the South African Mint for Krugerrands, is out of inventory.
Some dealers are so hungry for inventory, they will pay a seller a premium above spot price to get inventory. This is something unheard of, at least in my memory in the precious metals markets. Dealers always have added 5%-10% on a sale and have always deducted 5%-10% on a buy.
The spot silver price is currently somewhere around $13.70. If you wanted to buy a 100 oz silver bar right now, manufactured by one of the bigger names in silver, such as Engelhard or Johnson Matthey, you’re going to pay $1,700 or more, if you can find one. A roughly 25% premium to the spot price.
The obvious conclusion, albeit an argument described by some as paranoia from goldbugs, is that “paper” precious metals, i.e. the futures exchanges, are being held down and do not reflect realities in the supply/demand end of the physical metals market.

[GregoryFul]

Interesting read. Why would the Greenspan who understood such in 1966 be the father of the massive credit expansion bubbles whose serial collapses we are being doomed from. Cynical old man!

[GregoryFul]

Try AJPM.

They are running late in deliveries, but great prices both on the buy and sell side. Now they are paying a premium over spot gold for eagles. The demand is there for portable, recognizable real money!

[Moonman62]

"Congress is already investigating allegations of manipulation in the oil market, and it seems likely that it is only a matter of time before a similar investigation will be required in the precious metal markets," said Mark O'Byrne, executive director at Gold and Silver Investment.

LOL, doesn't he wish?

[M-cubed]

Why would the Greenspan who understood such in 1966 be the father of the massive credit expansion bubbles whose serial collapses we are being doomed from. <<<<<

Why?............because thats how the big international banks rob the populace....”FIAT MONEY”....(Fiat Money always goes to -0-...NO EXCEPTIONS)...if he didn't go along he wouldn't have been in that position.....The Founding fathers understood this game....Hence...ART.1 Sec.8 in the Constitution....(Google fiat money or the history of money with Greenspans own words in mind...you'll understand the concept easily)

[M-cubed]

BINGO....We have a winner...Its that simple folks...

[LomanBill]

[Unless you are up against the alliance of deep pockets backed by the supply of virtually unlimited credit.]

 

Deep pockets... and rather large deep holes in Colorado...

 

South Africa: Anglogold Seeks 100
Percent of Cripple Creek
15 January 2008
Charlotte Mathews

GLOBAL gold producer AngloGold Ashanti was offering to buy
Golden Cycle Corporation, its co-shareholder in the Cripple Creek & Victor
Gold Mining Company in the US, for $149m in shares, the companies said
yesterday.

Imagine the power of being able to exercise significant influence over both supply and demand...

 

The Anglo Empire marches forward.

 

Somewhere in hell, Cecil Rhodes is smiling.

[M-cubed]

Psssst...take your blinders off..your slip is showing... http://www.investmentrarities.com/08-22-08.html

[JasonC]

Nah, the idiot bubble blowing speculators just insanely pushed gold north of $1000 when we face a deflation, and made it an insanely profitable no brainer short. Men with brains rather than pudding in their head then sold and made money at the expense of the idiot bubble speculators.

[Pelham]

“Three unidentified U.S. banks held 86,398 short positions, or bets that gold prices will fall, in the COMEX gold market as of Aug. 5 — 10 times more short positions than a month earlier, a government report showed.”

This may be misleading. Banks that accumulate gold may short against their long position to lay off risk.