According to the COT report the managed money shorts have all come back again and will support a higher price. So it is a good time to buy precious metals right now.
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Managed Money Short Gold and Silver
Gold/Silver Update
Registered gold is still hanging at lows.
The result is that leverage is still at record highs.
COMEX gold/silver leverage
Gold is setting up for a huge short squeeze next week
And it looks like this. The blue line (registered gold stock) plunged to unseen levels of 407402.284 troy ounces.
Paper gold leverage skyrocketed today, it’s unbelievable.
By the way, remember what I said about the COMEX silver having a massive trend change in stock?
It is continuing. Registered silver (blue line) is dropping fast.
Gold/silver managed money short update
Because why are managed money short positions on 28 April 2015 (see charts below) at new highs for the year as shown below?
Gold/Silver Premiums Update
Silver premiums are going to hit new highs in the coming weeks, both at APMEX, silver miners and Shanghai.
Managed Money Short Gold Update
Although I don’t expect any short squeezes going into next week I need to point out something interesting.
GLD has seen small outflows, which means hedge funds are again selling their physical gold into the market. Also the total gold ETF’s backed by physical gold saw outflows of about 20 tonnes a month. This has put pressure on the gold price.
But I don’t believe we will see further significant outflows as the COMEX gives us a clue on this.
Registered gold at the COMEX is hitting record lows again (blue chart below is plunging).
And paper gold leverage (see below) is clearly hitting a one year high, indicating a definitive bottom in the gold price. January 2014 (the spike in the chart below) is happening all over again, so I expect gold to go back to $1300/ounce again in short notice.
And precious metals premiums were up across the board, but not by a lot.
Managed Money Shorts Gold/Silver Update
We hit 87349 short positions in gold and this even on a rising gold price. This clearly indicates gold will go higher on short squeezes in the next weeks.
Managed Money Short Gold, copper, oil update
GLD physical stock has been very strong though. The stock level hasn’t come down. So we have support here.
U.S. mint sales are having a strong start in 2015.
Copper contango is now exactly at zero, so we are at an inflection point now. Copper is starting to bottom out in a few weeks.
WTI crude oil contango is flattening out and edging back to backwardation with a higher oil price coming.
All in all, things are starting to look positive again for the commodities.