Unknown entity is pushing pms higher during COMEX trading

[swissaustrian]

Beginning on August 3rd an unknown entity with huge pockets has started push pms higher (especially gold) during COMEX trading hours (8am ET - 1:30 pm ET). This is VERY unsual as COMEX trading historically means intraday lows which I described in detail here: http://www.pmbug.com/forum/f2/intraday-gold-price-manipulation-10-am-et-269/

Moreso, during Asian trading hours (HongKong trades from 8:30pm ET - 5:45am ET), pms showed weakness.

It almost looks like pm markets have been turned on their heads.


Look at the gold trading patterns since 8-3. Silver looks very similar.

and today

On 6 out of 7 trading days, pms had the Asia down COMEX up pattern.

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What to make of this?
I have three hypotheses why this is happening:

a) A genuine buyer is stacking up gold - unlikely because he wouldn't do this at the COMEX. London or HongKong is the place to be for physical buying.

b) Somebody is covering shorts on a MASSIVE scale - this is much more likely, because the COMEX is where the shorts are.

c) Hedgers and speculators are moving their shorts to HongKong because of the pending implementation of position limits and possible findings of the CFTC's silver probe -This is the tinfoil hat explanation. Why on earth should the FT put a premature announcement on the frontpage of their paper that the CFTC silver manipulation investigation was fruitless. Why are pms suddenly falling during Asian trading and rising during COMEX trading? The relocation of shorts to Asia would explain that pretty well

Conclusion: I think the second explanation is the most likely. Somebody desperately wants out of his shorts.

 

[benjamen]

Thanks for the info SA! I have been trying to find some sort of news to justify today's spike. Now, can we look at the long/short positions and see if we can spot a big change?

 

[pmbug]

I would imagine that Sprott is starting to buy his silver about now, but I suspect, being as smart as he is, that he's buying directly from the miners/refiners and bypassing the suddently very risky paper/delivery channels.

Interesting that this is happening in gold though.

 

[swissaustrian]

Somebody might also know when the ramp jobs in EUR/USD are planned. Quite often pms spike and half an hour later EUR/USD and every other asset class follows.

 

[DCFusor]

I wish them bad luck getting out of their shorts. I only want out of mine when there's an attractive and willing woman close by.

 

[ancona]

Interesting.........I would subscribe to the bailing shorts theory, but only because it makes a little more sense. As it says, Comex is not the place to be looking for physical, since the very last thing they want to do is actually settle a contract for actual physical metal, preferring to settle in fiat. Another theory could be that sovereigns are buying. Central banks have been net buyers for a while now, probably to cover for lent out gold.

 

[swissaustrian]

Now, can we look at the long/short positions and see if we can spot a big change?

The COT (commitments of traders) reports are published after the close each friday. They're covering changes in futures and options positions up until tuesday of the respective week.
This means that the really interesting data is coming out next week.

 

[Unobtanium]

We Are Now Seeing Huge Orders For Physical Gold & Silver
King World News
Aug 10, 2012

http://kingworldnews.com/kingworldn...g_Huge_Orders_For_Physical_Gold_&_Silver.html

 

[Jetstream]

Just wait until a few thousand people wake up and decide they should be putting some of their investment money into physical bullion, and a major player or two decides to demand their paper investment in COMEX be converted to physical and delivered.

Then you will see prices rise to the real value.