COT Silver Report - September 12, 2014
One of the more persistent flaws in the world's most important price discovery mechanism comes down to a simple question. How did it come to pass that banks were given access to the commercial category of traders?
- Influence of geopolitics on gold
- Gold prices in 3 waves 1971 – 2014
- Is gold in a correction?
- The US gold in Fort Knox is secure, gone or irrelevant?
- Is gold related to a collapse of the US dollar?
- How to invest in gold? Physical or ETFs
Lately it feels like “goldbugs” have been forced to endure the trials of a job. Trust me, no one understands this better than myself, having taken my first job in the mining industry in April 2007, the exact month the TSX-Venture index peaked; and joining Miles Franklin in October 2011, one month after “dollar-priced gold” peaked. I can go on and on about TPTB’s “point of no return” decision in September 2011, when they realized the only way to avoid instantaneous, systemic implosion was unprecedented exponentially increasing market manipulation.
I have lots to get to today; so let’s start with the utter miracle of the Cartel allowing yesterday’s “key upside reversal” in gold and silver prices.
At this point, we’re not sure if it’s more astounding how rapidly the global economy is unraveling or how much worse TPTB are making the situation through their incessant, counterproductive interventions. To wit, in 2012’s “Anti-Midas Touch,” we wrote of how “whatever governments touch turn to lead”; and NEVER in our lifetimes has this “rule of thumb” been more accurate. Just reading this weekend’s news that the Eurozone has agreed to sanction Russia’s “big three” energy producers, just three months before the onset of winter, when more than a quarter of their natural gas is imported from Russia; one can only wonder if these people are truly that foolish or alternatively seeking a war to deflect the attentions of an angry, desolate population? History tells us to bet on the latter scenario, adding another layer to the argument of why precious metals have NEVER been more valuable.
Precious metals prices remain range-bound over the short-term after a devastating three year run. From a technical standpoint, it doesn't look great; we are stuck in this limbo of tightly controlled price limbo while the world continues to melt apart for the 99.9%.
Rajwant Kang, the Chief Financial Officer of Kootenay Silver Inc. chats with Cambridge House Live anchor Vanessa Collette about a wide range of issues, including his company's ongoing efforts in Mexico and why he's so excited about what they're doing. Great information for serious investors.
Catalin Chiloflischi, President/CEO/Director of Santa Fe Gold, chats with Cambridge House Live anchor Vanessa Collette at the Sprott Natural Resource Symposium about exciting, new developments that are giving Santa Fe Gold an excellent outlook moving forward. Solid information for resource investors here!
First, as silver prices edged $0.20 or 1.2% lower (actually less of a move than might have been expected given huge U.S. dollar relative strength), from $19.35 to $19.15 (as of Tuesday, September 2), trend following Managed Money traders (large hedge funds, commodity pool operators, commodity trading advisors, etc., aka “The Funds”) piled on a whopping 7,396 short contracts in COMEX silver futures, from 28,228 to 35,624 gross shorts.