"We Track the Financial Collapse For You, so You'll Thrive and Profit, In Spite of It... "

Fortunes will soon be made (and saved). Subscribe for free now. Get our vital, dispatches on gold, silver and sound-money delivered to your email inbox daily.

This field is for validation purposes and should be left unchanged.

Safeguard your financial future. Get our crucial, daily updates.

"We Track the Financial Collapse For You,
so You'll Thrive and Profit, In Spite of It... "

Fortunes will soon be made (and saved). Subscribe for free now. Get our vital, dispatches on gold, silver and sound-money delivered to your email inbox daily.

This field is for validation purposes and should be left unchanged.

This Is What A Paper Gold Short Squeeze Looks Like

Huge recent imbalances in the gold futures market led many to predict that speculators (usually wrong at big turning points) would be forced to close out their historically extreme short bets. Put another way, too many traders were using gold futures contracts to bet that precious metals will go down, and when those bets are reversed out it will make gold and silver go up.

Last week this prediction started to come true, with gold rising and speculators reacting by closing out a big part of their shorts. The shift displayed below is one of the biggest on record for a single week:

Gold futures

Silver COT gold futures

Here’s the same data for gold displayed graphically. Note how unusual it is for speculators (the gray bars) to be net short and commercials (red bars) to be net long, and how quickly that part of the imbalance was extinguished.

Gold futures chart

But even after these big changes, speculators are still less long than usual and commercials less short. To restore a normal structure to the paper gold and silver markets, another few weeks of rising prices will probably be necessary — which, yes, precious metals investors deserve. After all the chatter about a short squeeze, it would hugely anticlimactic for this single week’s action to be all there is.

On that longer-term note, mining stocks have begun to lead the underlying metals, which, according to the Rosen Market Timing Letter, indicates that the precious metals bull market is about to resume.

… both the silver and gold shares have closed above their most recent peak. Could this be a sign of the resumption of the bull market in the precious metals complex? Having started my Wall Street career in the year 1956 this truly Old Timer says, “Yes indeed.” There is nothing new about the precious metal shares moving up before the precious metals. All that is required to know that this is happening is the simplest form of technical analysis. No fundamentals, nothing fancy, no degrees of any kind required in order to see who’s leading who or what’s breaking out first. Just draw a few lines and “Voila” the answer will be yours.

Rosen XAU gold futures

 

Emigrate While You Still Can

3 thoughts on "This Is What A Paper Gold Short Squeeze Looks Like"

  1. I actually generate nearly $24,000-$25,000 each month over the internet. I ended up losing my job after operating for the same business enterprise for a long period. I required reliable earnings. I was not thinking about the “get rich overnight” packages you see online. Those all are type of ponzi type of mlm systems in which you have to first create prospects thereafter sell a product to friends or family members or anyone so that they will be in your team. Working on-line has many benefits like I am always home with the children and also enjoy time with family on different beaches of the world. Here’s the process to start https://fixpop.tumblr.com

  2. I generally make around $20,000-$21,000 monthly over the internet. I dropped my job after operating for the same employer for years. I needed trustworthy income. I was not researching for the “get rich overnight” packages you can find all over the net. Those are all sort of ponzi type of multi level marketing plan wherein you need to first make leads thereafter sell something to friends or family members or anyone so that they will be in your team. Working on line has many benefits like I am always home with the children and also enjoy time with family on different beaches of the world. Here’s the easiest way to start https://pepsapi.tumblr.com

Leave a Reply

Your email address will not be published. Required fields are marked *


Zero Fees Gold IRA

Contact Us

Send Us Your Video Links

Send us a message.
We value your feedback,
questions and advice.



Cut through the clutter and mainstream media noise. Get free, concise dispatches on vital news, videos and opinions. Delivered to Your email inbox daily. You’ll never miss a critical story, guaranteed.

This field is for validation purposes and should be left unchanged.