Just three weeks ago, we warned you to ignore newsletter pundits who were claiming that one day soon, The Banks that operate on the COMEX will be long and on the side of the regular investor/stacker. As with all nonsense, this sentiment ignores reality. Before reading further, I urge you to read this post from October 9: https://www.sprottmoney.com/Blog/the-banks-are-not…
October 9 was a Tuesday, and that’s pretty handy because all of the CFTC’s Commitment of Traders surveys are taken after the COMEX close on Tuesdays. Back on October 9, the price of COMEX gold closed at $1191. The CoT survey taken that day was reported on Friday, October 12. And what did it show? Check the handy spreadsheet below from Goldseek.
As you can see, on October 9 the positions were summarized as follows:
• The Large Speculators (primarily hedge funds, managed money, trading funds) NET SHORT 38,175 contracts. This was a new ALL-TIME HIGH NET SHORT position for this category.
• The Commercials (primarily Big Banks like JPM, HSBC, MS, etc.) NET LONG 25,866 contracts . This was a new ALL-TIME HIGH NET LONG position for this category.
• On the disaggregated report, the sub-category “Managed Money” was historically NET SHORT 109,544 contracts, as you can see below.
Fast-forward two weeks to Tuesday, October 23. The price of COMEX gold had risen $45 to $1236 and another CoT survey was taken. This report was released last Friday, the 26th, and it is shown below.
So, on a price move of less than 4%, it’s quite clear that The Banks have revealed themselves as NOT “on your side”. Not now, not ever. The positions on this most recent report can be summarized as:
…click on the above link to read the rest of the article…
