For Gold, Friday’s COT Report Is HugeSubmitted by Michael Nystrom on Fri, 04/19/2013 - 15:01
by John Rubino on April 18, 2013 | Dollar Collapse
The dominant explanation (in the sound money community at least) for the precious metals crash is, well, sabotage. The metals exchanges were running out of physical product and faced imminent default, so the major governments via their money center bank proxies sold tens of billions of dollars of gold and silver futures contracts, forcing prices down and triggering stop-loss orders and margin calls that produced Monday’s epic bloodbath.
These short positions were then covered at huge profits for the manipulators, leaving nothing but smoking rubble where prosperous gold-bugs used to live. It’s a compelling story with a lot of circumstantial evidence to back it up. But one piece of concrete data is needed for this narrative to win out: The Commitments of Traders Report that will be released on Friday at 3:30 EST by the US Commodities Futures Trading Commission (CFTC) has to show massive short-covering by the big banks. Here’s a more complete explanation from silver analyst Ted Butler:
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