Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold Miners’ Q2’18 Fundamentals
By: Adam Hamilton, CPA

“Printing Money” and Cocaine
By: Gary Christenson

The next major gold rally
By: Steven Saville

What Gold is Not
By: Gary Tanashian

Here’s How “External Dollar Debt” Produces An “Emerging Market Crisis”
By: John Rubino

Will Erdogan Save Turkey and Help Gold?
By: Arkadiusz Sieron

This Week’s Golden Nuggets
By: GoldCore

Asian Metals Market Update: Aug 17 2018
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold Edges Lower While Silver Bonces Back
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 8 16 2018
By: Ira Epstein


GoldSeek Web

If a Precious Metals Squeeze Develops Look to Swap Dealer Gold Positions as a Cause

 -- Published: Sunday, 24 August 2014 | Print  | Disqus 

By Gene Arensberg

Elsewhere we mentioned that if a squeeze got underway it likely would not be because of the overly large short positions held by Swap Dealers in silver futures. No, if a squeeze develops, it is more likely to be caused by the Swap Dealer positioning in gold futures. Consider the data table below as “Exhibit A”.

20140823 SD Data Table Gold

Notice that the SD net short position peaked July 8 at 108,268 contracts net short. Notice also, that with gold now about $30 cheaper, and even after 11,752 contracts were covered Tues/Tues, the SD net short position remains at an extremely high 93,559 contracts net short.

Here’s how it looks in the more familiar graph form.

20140823 SD Net Gold

(The lower the blue line the larger the net short position in this graph. CFTC, Cash Market, GGR.)

And here’s how it “got there” – the gross shorts which remain at nosebleed levels, currently 151,772 lots. That’s down from the July 22 peak of 167,723 contracts, after giving effect to the 6,676 covered this COT week, but not enough to take much of the pressure off. Here’s the gross shorts graph for reference.

20140823 SD Shorts Gold

(The higher the blue line the larger the gross short position in this graph. CFTC, Cash Market, GGR.)

No, if a squeeze develops, we won’t be blaming the silver futures market this time. We will be pointing instead at the gold futures market where significant imbalances still show.

Vik small(And to the hecklers out there, especially the ones from Germany who seem to have tons of time and little else to do besides pester blog writers with mind numbingly long emails, yes, we know that squeezes are rare, but they are not nonexistent – the last good one being in 2010-2011 for example. Talk to the hand, sport. You might get a better response there.)

- See more at:


| Digg This Article
 -- Published: Sunday, 24 August 2014 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2018 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.