Commercials Covering Gold & Silver Shorts. Here Is The Good News

http://kingworldnews.com/commercials-covering-in-the-gold-silver-markets-here-is-the-good-news/

ALERT: Commercials Cover All-Time Record Number Of Silver Short Positions! Also Covering Gold Shorts!

Gold, and especially silver (since the silver market is much smaller, and therefore more easily manipulated surreptitiously by the miscreant bullion banks) have been hammered for the last 3 weeks.  This has been obviously explained with the record number of (synthetic) short positions by the "commercials" created out of thin air (see fractional reserve banking, and paper vs. physical leverage or rehypothecation), thereby spooking the speculative longs (hedge funds) out of their money-losing positions.  The so-called "smart money" ("hedgies") are being consistently stopped out of their trades, and certainly aren't living up to their namesake.

In any case, those massive short positions have now been covered by the commercials in another episode of a "wash and rinse" cycle.  This bodes well for a recovery in silver (and gold) prices, even if the speculative longs are being carried out in a body bag.  I apologize for the many parenthetical sentences, but I put the burden on the readers to perform their own due diligence.  If you don't understand something which may be important, take ownership and research it.

In a nutshell, ignore the noise of the constantly fluctuating published (paper) prices of gold and silver.  They are being driven by an artificially suppressed market of non-existent (virtual) inventory.  Just buy physical precious metals when price dips present themselves and consider them gifts at firesale liquidation prices.  Stop trying to trade (and time the markets).  Trying to outsmart manipulated markets is a futile exercise.  You're overthinking it.  Buy the f***ing dips (BTFD) and forget about it.  You will thank yourself later if (and when) the $hit hits the fan.  Because the world is one big unicorn, right?

http://kingworldnews.com/commercials-covering-all-time-record-number-of-silver-short-positions/

ALERT: Commercials Just Covered Massive Number Of Silver Short Positions!

With the record amount of silver short positions in the COMEX 3 weeks ago, silver was due for a waterfall decline, which materialized.  It looks like many of those shorts covered, which means the bottom is probably in.

Note:  one of these days, those huge short positions will be caught in the wrong direction, and a massive short squeeze will take these shorts out on a stretcher.  Until that day, the miscreants will continue to manipulate the silver pits.

http://kingworldnews.com/alert-commercials-just-covered-massive-number-of-silver-short-positions/

Incredibly Important Developments In Gold & Silver Markets

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/3_Incredibly_Important_Developments_In_Gold_%26_Silver_Markets.html

A Manipulation Timeline

http://www.silverseek.com/commentary/manipulation-timeline-7831

A shortage of physical precious metals

Since there is a shortage of physical gold and silver, bullion banks with permanent net short positions on COMEX gold and silver are also using the gold ETF GLD and silver ETF SLV as vehicles to put on naked short positions. This becomes part of their grand scheme to surreptitiously suppress the prices of both precious metals.

Exchange-Traded Funds are regulated by the SEC, while the watchdog for the COMEX is the CFTC, so price manipulation can occur in both markets, resulting in confusion (or complicity) among both regulators.

In other words, instead of a short seller delivering physical bullion as settlement of a COMEX forward contract, the short seller can just use shares of the ETF as collateral. Clearly, this avoids physical delivery, and enables naked short positions as no physical delivery occurs. These ETF's are merely paper certificates allegedly backed by real bullion, but their independent auditing is spotty, so theoretically, shorting an ETF can occur ad infinitum--which creates further selling pressure. Hence, naked shorting is illegal, yet the bullion banks (commercial shorts) are practicing it in order to suppress gold and silver prices lower.

In essence, bullion banks can now short COMEX futures contracts, as well as precious metals ETF's, many of those being naked short positions.

Until these criminal activities among bullion banks, gold producers, and the Federal Reserve itself are exposed for what they are, gold and silver buyers can do their part by insisting on physical delivery on expiry of futures contracts, in lieu of settlement via cash. This will force the short sellers to find physical gold and silver in the open market--if indeed their short positions are naked. Eventually, a "fail to deliver" will occur on the COMEX or London Metals Exchange, and the Emperors will truly be naked.

More crooks

Stephen Obie, Director of Enforcement with the Commodity Futures Trading Commission (CFTC), which oversees the futures exchanges, is on Fox Business News preaching about transparency, oversight, regulation, and enforcement, and waving his hands on TV like a Dale Carnegie salesman. He's saying how the SEC and investors didn't oversee and perform due diligence on Bernie Madoff.

What's unbelievable is that the commodity pits are rife with manipulation and corruption beyond imagination. Big commercial traders and banks have artificially suppressed prices on the futures markets for years--yet, the CFTC never investigates the commercials--they know where their bread is buttered. Naked shorting makes it possible for the commercials to dampen prices on commodities like gold and silver, with no intention for physical delivery on settlement date. In other words, they'll sell short a futures contract with no inventory, and no intention to deliver at that date. These are phantom contracts, much like the toxic credit default swaps which were uncollaterized. These naked short-selling commercials are selling vaporware, and their massive short positions alone can drive prices lower due to no other reason than market manipulation.

Instead, the CFTC goes after the small-time speculators for minor non-compliance, but they will not reveal who takes large positions on either side of a trade--including the commercials who manipulate the markets. Transparency? What a crock--Fort Knox hasn't had an independent audit for its gold reserves since the early 1950's. Many conspiracy theorists are saying half of what is reported in vaults has either been sold off or leased, yet is still counted.

Eventually, this con game will be exposed when a seller will default, unable to meet physical delivery demands. That day is approaching, as buyers in the middle east are scrambling to buy gold and dealers are unable to meet that demand.