Long Weekend Ahead For Those Short Bullion

Right now I’m watching the June open interest for Comex gold.  Anyone long a June gold contract and who either can’t take delivery or does not have an account funded to take delivery must be out of their June gold position by the end of close today, as Tuesday is 1st notice day and Monday is a holiday.  As of yesterday afternoon, there were still 3.4 million ozs. of open contract positions vs. 1.7 million ozs. of Comex gold available for delivery (registered).  Yesterday saw heavy liquidation of June gold positions, with 60% of that liquidated rolled to August, the next front-month (significant delivery month).  It will be interesting to see what the June gold o/i is for the end of today when the numbers are published Tuesday.  Whatever that number is will be an indication of the number of contracts that want delivery, as notices can go out as early as tonight.

Typically, NY trading desks start long weekends a day early.  So it’s possible that we might not see much liquidation in June today.  For sure the price-action is not indicative of open interest liquidation, although there could be heavy roll with no net liquidation.  Anything around 2mm ozs. still open will not be good news for the Comex shorts.  Stay tuned…

I’m busy watching the French Open on ESPN 2 and adding to my fund’s ECU position, so I just wanted to post an excerpt from an interview on King World News with Rob McEwen, a legendary mining company builder/operator:

“If we follow the course of history, we’re going to see the value of the dollar, in terms of its purchasing power, further reduced. Our cost of living is going to go up and that’s not good for anyone. So we need to find ways to protect ourselves, and historically gold, silver have been one of those areas that have protected large parts of financial assets when you have monetary systems being debased by governments that are eager to try to ward off the creditors.  The QE3 is going to happen and there will be a QE4 and probably a QE5. We’re looking at unprecedented amounts of monetary stimulation occurring not only on this side of the Atlantic, but over in Europe and it has been to stave off a collapse. There has been tremendous loss of value, but we haven’t seen a big jump in employment and we haven’t seen a large jump in capital investments and that’s what we need to see.

Here’s the LINK.  Buon fine settimana e divertiti per il ponte! (Have a good weekend and have fun for the long weekend)

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