The BIG picture.... VIT, with another nice confrimation news release today, edifying the evident, very large, profitable open pit resource... and over 1.2 million shares traded...and the price going nowhere...we are left to assume, like we do with most of the JPMs, that we have the relentless not-for-profit naked short/counterfeit shares being thrown at any and all attempts of real price appreciation with yet another oversold, fraudulently suppressed stock. The big boys wasted no time in pillorying Kinross with much overkill in sympathy with orchestrated selling...whilst assuring that the bus. news media blabbed it all over the flat screens in the free world....and proceeded to vent their endless vindictiveness on the gold and silver markets by way of shorting.
Have no fear, they were very active in the metals as well...but seem to be somewhat winded...hinting that the battle is on around the $1650 gold and $30 silver marks. The next few days should be interesting and we wait with baited breath yet again for the monthly, dreaded 'options expiry' take down into month's end. Will they or won't they? Can they or can't they? Well, if they can't then it is still a simple matter to trash the junior PMs...much easier to do. Let's see how January unfolds and hope things "they are a changin", as Bob Dylan sang to the Whitehouse last night.
From Jim Sinclair's site today:
London Trader – Staggering Gold Demand Creating Shortages
January 17, 2012, at 1:05 pm
by Eric King in the category King World News | Print This Post | Email This Post
Click here to view the full interview on KingWorldNews.com
Dear CIGAs,
With many global investors still concerned about the price of gold and silver, today King World News interviewed the “London Trader” to get his take on these markets. The source stated, “We’ve still got a very, very compressed spring because the shorts are still trying to defend their positions, their naked short positions in both the gold and silver markets. As an example, in the silver market, you saw that type of activity in the silver ETF (SLV). Shorts borrowed another 3 million ounces to cover immediate delivery concerns. There are 25 million ounces now borrowed from SLV. It is getting worse and worse for them.”
The London Trader continues:
“They are naked short on the COMEX and to meet immediate delivery demand they are having to borrow it from the SLV. It is still unwinding and it’s still got a long way to go. Yes, you will still see games being played and yes you can create paper gold out of thin air. But there comes a point where each time you do that the physical buyers are taking it and it has a lagging effect that will catch up, and eventually it gets reflected in the price.
The demand for euro gold here in London is so intense it’s shocking to some of the players. This is what has left some market participants in the US wondering why the price of gold has risen along with the dollar. It’s because demand in the eurozone is unimaginably strong. The euro physical gold demand is off the charts and it is creating shortages for metal, in size, here in London.
The physical gold market is actually being drained by euro gold buyers. People are converting their euros to gold and there is only a finite amount of physical gold available. Again, that’s why you are seeing the dollar and gold rallying together.
We are also seeing very strong markets in Asia with solid premiums. Silver is in backwardation. There are huge premiums for size (large tonnage orders) in silver and you are going to wait 3, 4 or 5 weeks for delivery. There is constant backwardation into the March futures contract. For the most part, the bid on silver spot has been higher than the ask on March futures.
These paper markets are a joke. Nobody who is seriously in the business of taking physical delivery is trading on the COMEX anymore. That is big news. The COMEX is no longer a credible marketplace….
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