Harvey Organ this morning - https://harveyorgan.blogspot.com/
Today's commentary will be extremely important for you to read.
Gold closed Friday at 1:30pm (comex closing time) at $1316.60 up $9.80 on the day. It continued on in the access market rising another 2 dollars to close at $1318. 60. Silver also enjoyed a fine day rising to $22.04 for a gain of 25 cents. It also continued to rise in the access market and closed at $22.09.
The total open interest continues to remain strong. Despite the raid on Thursday, the total gold OI rests at 612,454 for a loss of only 4734 contracts. The banking cartel needed a lot more leaves to be shaken from the tree. The total silver OI also remained in its lofty position of 152,540, down 1740 contracts.
The new front month of December OI for both gold and silver are as follows:
Gold December Open Interest: 429,186 CONTRACTS
Silver December Open Interst: 105,236 CONTRACTS
The October trading month has the following open interest left to be served:
Gold: 1313 contracts ( 1,313,000 oz of gold)
Silver: 12 contracts ( 60,000 oz of silver)
Every Friday we get the Committment of Traders report. It basically shows where the demand is coming from and who supplied the unbacked paper.
The bankers who supply gold and silver contracts are always going short and thus have extreme trouble in supplying metal to those who are standing.
COT Gold Report - Positions as of Tuesday, September 28, 2010
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Here we see that in the category of the large speculators, those that have been long continued on their merry way, adding to their positions.
They increased their positions by a huge 10,704. Those large speculators that have been short, saw the light and covered a rather large 2932 contracts.
And now for the important banking category, the commercials.
Those commercials that have been long for quite awhile and these are smaller banks and financial institutions that are close to physical gold. These guys buy the gold from the miners as it comes out of the ground. These commercials increased their longs by a massive 8606 contracts. Now look at those commercials that have always been short, i.e JPMorgan, HSBC and a few of their friends: they increased their short position by a whopping 19038 contracts.
Our regulators continue to watch on the sidelines, very perplexed as to how to solve their dilemma.
Our small speculators have now entered the gold arena. Those small specs that have been long continued to buy long to the tune of 2550 contracts.
But those speculators that have been short continued to add to those positions by a huge 5754 contracts. The small speculators always get wiped out so watch for gold to rise again blowing these guys out of the water.
COT Silver Report - Positions as of Tuesday, September 28, 2010
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Those large speculators that have been long silver continued on accumulating silver contracts to the tune of 4053 contracts.
Those large speculators that have been short silver continued to short silver by 1943 contracts.
And now for our important commercial category:
Those large commercials that have been long only added 61 contracts to their accumulated positions. However our large bankers only added 171 positions to their massive short buildup. I guess their midnight meetings must have been steamy!!
The surprise is the small speculator category.
Those small speculators that have been long added only 476 contracts to their accumulated long side. Look at the small speculators that have been short: they added a huge 2476 contracts to their shortfall positions.
These guys will be wiped out next week. Expect silver to rise!!!
In summary then, in gold, the commercial banks supplied the massive unbacked paper and the large speculators took on the bet.
Winner will take all. The small specs have put a little money on the table backing the bankers. They will lose.
In silver: the large speculators continue to pile on but the big commercial banks did not supply the extra paper. That honour belonged to the small specs and they always get fleeced.