Monday, June 22, 2009


I write many articles on gold and other precious metals, but I don't usually write a whole lot on ''ongoing manipulation & conspiracy theories' in the precious metals markets.
I recently came across the 'Bank Participation report' published by the CFTC, June 2, 2009,
Bank Participation Report, while reading an article by Theodore Butler.
The reason I looked at the report, was that it contains data published by the CFTC.
Focus on the 'LARGE' short positions by a few US Banks in precious metals like Gold, Silver and Palladium. Below is the data from the above mentioned link.

As Mr Butler discusses in his article,
"Delivering against short contracts is not always a simple case of having enough money. In real commodities, it often comes down to owning the real material, not a cash equivalent."
While I'm not a big believer in conspiracy theories, those short positions in precious metals are rather surprising, given the turmoil in the global economy today.
Also, how exactly will these banks cover these short positions if precious metal prices rise?
And that brings us right back to the conspiracy theorists
- as they say
''' the bullion banks are preventing gold and other precious metals from rising at every chance they get!''''

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