View Full Version : Got Gold Report – COMEX Commercials Least Net Short Silver In Years

29th October 2008, 20:20
Got Gold Report – COMEX Commercials Least Net Short Silver In Years


The Got Gold Report takes aim on the few big bullion banks which it contends have had a trading advantage in gold and silver futures markets and suggests investors take delivery of gold and silver from the COMEX in December to take advantage of the result of the short seller’s actions; artificially low prices.
ATLANTA (ResourceInvestor.com) -- A few very large short selling players have had their foot on the necks of all those who would dare to either hold on or try to buy into these distressed markets for all things gold and silver. They have had unchecked power now for months. They have had a great deal of “fun.” But the smartest of them are probably getting “smaller,” as legendary trader and Virginia son Dennis Gartman is wont to say. That is, according to commitments of traders data, the smartest and largest of the short sellers are getting smaller, not larger in their short positioning right now.

A few of them are probably turning net long by now or will be by the end of the month as the end of fund tax loss selling arrives on Halloween, five days hence.

Indeed, as discussed below for example, the largest of the largest traders of gold and silver futures, the traders classed by the Commodities Futures Trading Commission (CFTC) as commercial on the COMEX, division of NYMEX in New York, are actually now the least net short contracts for silver they have been in years.

By November 15, the deadline for most year-end hedge fund redemption notices, another layer of forced selling pressure will have come and gone.

Odds and Ends

Following up on an item in the last full report, the gold:silver ratio (GSR), which reached a 16-year high two weeks ago of 88 ounces of silver to one ounce of gold, has begun the expected contraction. As of the Friday close the GSR was 78.65 ounces of silver to one ounce of gold using cash market closing figures. The reasoning for conversion of gold into silver while the GSR is so high was discussed in the last Got Gold Report.

In other news, the flood of forced or panic sellers into a vacuum of no buyers now has great companies, the greatest mining companies on earth, selling for prices that discount gold to $300 and silver to $4. Talk about a fire sale on the HUI! The action in the world’s major equity markets is getting pretty frightful also.

Due to time and travel constraints, we’ll be moving faster than normal in this report, but long time readers of the report won’t want to miss the End Notes section (at the end of this report). It’s time to call a short selling spade exactly what it is. And, perhaps it’s time to do something about it.

First, let’s look at a few indicators.