In the February 2 session on the TOCOM Goldman Sachs made no change to their positions yet again which leaves them SHORT 69 contracts with no long position at all. Their position has remained the same since Jan 22. Looks like the game is almost over.
Look at the net short positions of the traditional major gold shorts on the TOCOM. With the exception of STDJ (Standard Bank of Japan) they have all converged on zero. This is amazing! The entities that have been net short for decades have systematically over the last 3 years worked their positions down to a ZERO net short in gold. These are the most savvy, and in-the-know insiders in the gold world and they have seen it fit not to be short and have known about the need to get out of the gold short side for 3 years. This means this is NOT something they read in the newspaper last week. This is a major macro market factor. What could it be? My guess is that the insiders would have a good idea as to when Central bank gold would be depleted. After all, Frank Veneroso made a guess at this in 2000 with information he could glean from the outside. His estimate was around 2007-2008. Imagine what you could do if you were on the inside with more precise estimates of CB gold inventory and rate of dishoarding. Clearly all the big players do not want to touch gold on the short side as from about NOW. Who knows exactly when this market is going to blow up but it would seem it is REAL close.
Cheers
Adrian