“Woe to the land whose king is a child and whose leaders are already drunk in the morning. Happy the land whose king is a nobleman, and whose leaders work hard before they feast and drink, and then only to strengthen themselves for the tasks ahead”. (Eccl 10: 16-17)


"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat


Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


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Friday, May 3, 2013

General Public now Net Short in Gold

For the first time since the gold bull market began back in 2001, the general public, the small specs, are now NET SHORT in the gold futures market.

It would seem as if they are now intent on chasing equities higher expecting to get better returns on investment than in gold.

Here is the chart containing this week's data where I have separated out only the small specs.

 
 
I will detail the overall COT in more depth later. In addition, I covered it somewhat in the KWN Metals Wrap segment for this week so look for that when it is released Saturday AM.

By the way, the SPREADS in gold were greatly reduced this week which we anticipated would occur once gold stabilized and lost some of its excessive volatility.



5 comments:

  1. Dan thanks for all you do! Now here is something you'll enjoy, I believe. This was created and posted by Pining 4 the Fjords over at tfmetalsreport.Enjoy!

    http://i1178.photobucket.com/albums/x380/timtruss11/FinalGrinch1_zps74b9bd24.jpg~original

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    Replies
    1. Silverwood -

      Thanks - that is pretty doggone clever!

      Delete
  2. Hi Dan,

    I have been reading your blog for quite some time, and I have to say it is quite insightful. I can tell you speak from experience and try to approach things in a very unbiased way, which I respect.

    Like yourself, I have been watching the equities get chased higher and higher. It reminds me of when silver kept getting chased higher by the small specs. and general public, to only come crashing down horribly.

    My question for you is: would you be able to post a some insight on the COT report for the equity futures. I see from the 04/30/13 COT, posted on the CFTC website, commercials are net short and non-commercials are net long. It would be my assumption - I'm not sure where to find this is broken down further - that it is the small specs. and public chasing the equities higher. Would you agree with this statement? And do you see this position pushing to extremes here, similar to the way Silver did?

    Thanks!

    Nate

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  3. I guess this is a sign that the bottom might be in?

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  4. I have never posted on your blog, however I DO READ what you have to say every time you post and... I listen to you every Saturday on KWN. Keep up the great work!!!!

    ReplyDelete

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