I’m not into studying the COT reports, speculator positions, commercial positions and all that gumpf. Just a cesspool of moral corruption driven by greed and US centric self interest. CRIMEX is a leveraged market where you can buy a position into the future gold price on a 20 to 1 leaverage ratio. Can you just imagine how much power you have with that much leverage. You can manipulate any market with that sort of leaverage. It’s part of how the US maintains its domination over the world. Why people put up with it I don’t know. What’s the rational for shorting gold though? No logical rational that I can see other than keeping the US bubble alive. It’s not like gold produces income, so you can’t base a short position on the presumption that it’s future “cash flow” is expected to diminish, like you could on a stock or a stock market.
There is an argument to maybe suggest that you would not want to hold gold while other asset classes are offering much higher real inflation adjusted yields. But not holding is different to shorting right. Now we see that high yielding US treasuries continue to be sold in the market place and the gold price is rising. What does that say?
It says the market is still seeing a non-yielding barbaric relic as a better option than 10 year treasuries that are yielding plus 3% after inflation expectations.
What’s more that same barbaric relic has the potential to become the life preserver when the bubble final pops.Esh
WAF Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
