Connected Money Continues to ‘Reposition’


Source: Connected Money Continues to ‘Reposition’

Thanks for posting my email to you Eric…I appreciate the reply….Don’t get me wrong …I appreciate the returns thus far (300 % +). It is that relative to the Price of Gold, I give my head a shake. But as someone recently posted on the Internet, It is Gold that leads the Gold Stocks, not the other way around.

The fact is that there are negative forces around containing the uptrend. They include the media and the powers that see Gold as the antichrist to currency and its unlimited growth trend!

Selim

Gold does provides the leadership, but it is the gold shares that do the heavy lifting. Not only have gold shares provide excellent returns but also increasing dividends since 2000. For the most parts, dividends are excluded from gold stock index returns. A quick review of the dividend payouts from 1920’s to 1940’s suggests the best is yet to come.

There’s an old saying that those that control the gold make the rules. Gold, fixed at $35 – still $42.22 US reserves, used to be controlled with an iron fist. After 1971, its grip loosened substantially. While gold may no longer be “dominated”, it’s certainly actively managed through media assisted analysis and the paper markets. The paper markets reveal footprints of control not consistent with free and competitive markets.

Connected money is repositioning (withdrawing their shorts) into weakness at the expense of the retail and computer sellers.

Gold London P.M Fixed and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest

Gold London P.M Fixed and the Nonreportable Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest

Take Care,

Eric