[indentKew]

With many global investors still concerned about the price of gold and silver, today King World News interviewed the “London Trader” to get his take on these markets. The source stated, “We’ve still got a very, very compressed spring because the shorts are still trying to defend their positions, their naked short positions in both the gold and silver markets. As an example, in the silver market, you saw that type of activity in the silver ETF (SLV). Shorts borrowed another 3 million ounces to cover immediate delivery concerns. There are 25 million ounces now borrowed from SLV. It is getting worse and worse for them.”





“They are naked short on the COMEX and to meet immediate delivery demand they are having to borrow it from the SLV. It is still unwinding and it’s still got a long way to go. Yes, you will still see games being played and yes you can create paper gold out of thin air. But there comes a point where each time you do that the physical buyers are taking it and it has a lagging effect that will catch up, and eventually it gets reflected in the price.



The demand for euro gold here in London is so intense it’s shocking to some of the players. This is what has left some market participants in the US wondering why the price of gold has risen along with the dollar. It’s because demand in the eurozone is unimaginably strong. The euro physical gold demand is off the charts and it is creating shortages for metal, in size, here in London.



The physical gold market is actually being drained by euro gold buyers. People are converting their euros to gold and there is only a finite amount of physical gold available. Again, that’s why you are seeing the dollar and gold rallying together.



We are also seeing very strong markets in Asia with solid premiums. Silver is in backwardation. There are huge premiums for size (large tonnage orders) in silver and you are going to wait 3, 4 or 5 weeks for delivery. There is constant backwardation into the March futures contract. For the most part, the bid on silver spot has been higher than the ask on March futures.



These paper markets are a joke. Nobody who is seriously in the business of taking physical delivery is trading on the COMEX anymore. That is big news. The COMEX is no longer a credible marketplace....



Continue reading the London Trader interview below...
























“You now have international funds, whose compliance departments are saying to them, ‘You can no longer trade on the Comex because the CME did not back client accounts.’ There are a tremendous number of international funds and hedge funds that can no longer trade on the COMEX as of the first of this year because of compliance reasons and no one is talking about this. This is huge news.



Back to gold, if we get a pit close above $1,650 you could see a lot of scared shorts begin to cover. This could create a very quick move higher in the gold price. Also, if we get a pit close above $1,650, we are going to see a very large tranche of unfilled wholesale orders moving a lot higher with their bids, and that will become a base. There are massive orders for sovereign entities under the market here.



The Chinese are long-term thinkers and they really don’t care whether they are paying $1,600 or $1,700 for gold. What they do is get the best price they can. When the new floor eventually becomes $1,700, they will buy everything available at that price. When it becomes $1,800 they will buy at that price. They are just looking to accumulate gold and they are never sellers, never.



There are two things here. Yes, China wants a cheap gold price and they’ve been enjoying the fact the gold market was taken down. They have recently taken another roughly 150 tons away from the Western central banks. The Western central banks essentially donated that gold in an attempt to prop up their paper currencies. Yet again these traitorous Western central bankers have given away more power.



I see gold as power and once again they have given it away to the Eastern Hemisphere. The Chinese continue to laugh. As much as the Chinese would like to have a cheap gold price and have this manipulation keep going, they also want to bring the renminbi to the center stage.



To them, it’s more important the Chinese currency becomes the world’s currency. The dollar, despite the latest rally, is dying, we all know it’s dying. So, the Chinese are moving to become the international currency of the world and the best way to do that is through gold. It’s a very clever tactic. Every time more gold arrives in China, the more their currency is backed, the closer they move technically to becoming the world’s reserve currency.”



The flow of gold from Western vaults to Eastern vaults is the most important symbol of the decline of the West. As the East rises, the West falls. “So goes the gold, so goes the power.” Remember to be your own central bank by owning physical gold. Many in Europe have apparently figured this out as gold demand is, “off the charts.”


http://kingworldnews.com/kingworldne...Shortages.html

[Stasher11]

Meanwhile back at the Manipulation Farm...

Hold silver at 30... Hold... hold...

(we must keep sheeple believing silver is a worthless manufacturing byproduct)

[indentKew]

Sounds like they are raiding SLV(shock and horror) more and more and hedges have given up on the Comex

[JohnMaltczevitch]

That article has some big things wrong with it.
I personally don't bother reading articles like that.
I do my own analysis for one. I have traded this market
for years and was very successful, very researched,
last 3 years though has been very hard to to it right
and big with confidence. Especially last year.

One, I highly doubt there is any SI in SLV, this is old news,
they may have started with the original 130Moz, they changed
the prospectus and swapped it out, they had 5 1/2 years to do
that. SLV is Barclays, it's all paper trading, the volumes are incredible,
have a look at the volumes and options, SLV is part of the CRIMEX
scam, swing SI on crimex, control massive related volumes and traders.

Two, the naked shorts are never ever in trouble, they were not in trouble
this last round after breakouts, all the defaults people on here talked
about never happened, they won't happen until they want it to.
Going back Large Sarge and I argued this, a few times.

I have a thread here on volumes, COMEX shorts have been muted due
to massive volumes that matched total shorts day after day.
Studying a blow off top in real time. Studying anomalies, volume, etc.
Capping Silver, Massive Volume Price Drops


They cleaned up their shorts anyways, but it does not matter these days.

Charts here. Looks like the bottom is in, GC is riding the 200 in +ve way.
Gold Break Down on Pennant Formed Dec 28 2011

Edit add,
On this forum, the Capping Silver thread is my best thread here.
Studying serious anomalies in the market, a total paradigm shift.
I don't know why it does not get more interest, I have a lot of
good calls on here and have a reputation of good calls going back,
just because I have good calls doesn't mean it is easy to trade it.
There are many strategies. I have my own strategy that made me.
If it's over now it's over. LOL ! The second thread I posted to is
very good with charts, refutes OP, I picked the bottom successfully,
even though there was no total correction going down to 1300, day
traders are watching many things I mentioned in thread, many opportunities,
but I ain't doing that, I am sure they got swung in and out of positions
too, now they are all long and can be long with confidence.

[expomeHattePe]

Meanwhile back at the Manipulation Farm...

Hold silver at 30... Hold... hold...

(we must keep sheeple believing silver is a worthless manufacturing byproduct)

maybe God wants us to own silver.

He/She/They are making it affordable.

(i'm not implying that the US gov. is God)

it does make for a wierd "family", the US gov. plays currency manipulation tricks to prop up the US $ & to knock down key commodities.

then people who detest the current traitorous US gov. get a chance to buy more of the real money.

it's like they're doing the G-S.us community a favor - while at the same time, we know they stink - and they know that we know about their crimes.