"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


Friday, February 18, 2011

Gold Commitment of Traders

Good action here. Lots of spec interest coming from the Managed Money side of the equation whose buying is now driving this market higher.

As you can see on the chart, they have ramped up their net long holdings but even at that remain rather lightly invested in this market, even at current price levels seeing that they are still well off their recent peak holdings.

Swap Dealers and Commercials are once again plying their craft of "Sell, Sell, Sell".

The other large reportables are steadily drawing down their net long holdings and are also at a relatively low level of exposure to the long side compared to the recent past.

The general public, the small specs, are showing some interest in the long side again.


  1. Hi Dan,
    Great commentary! You're on my daily visit list

    Have you seen the FOIA release out of GATA today? Very interesting stuff!


    Would love to get your thoughts on it, Thanks!

  2. Hello Zergling;

    Yes, I did see that recent post from GATA.

    As far as I am concerned it is another piece in the puzzle that GATA has so painstakingly worked to put together over the years. My take on this is that it confirms in my mind how keenly interested the Fed is in the price of gold. Anyone who would say that the US monetary authorities are indifferent to what the gold market is doing has simply chosen to be wilfully ignorant.

    Gold is an enemy to Central Bankers of the West, even Alan GReenspan back in his early days understood this.

  3. Success! Larry replaces Savannah Guy.

    Nothing against Savannah - it's a very nice place to live.


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