is the OI not falling off a cliff like on April 29th?
From Harvey today: "The total gold comex open interest fell by a tiny 8161 contracts despite the huge raid on Thursday. The new open interest rests at Friday night at 489,588 from Thursday's level of 497,749. The front options exercised month of September saw its OI fall from 123 to 73 for a loss of 50 contracts. We had 40 deliveries on Thursday so we finally had some minor cash settlements. The next front delivery month in gold is October and strangely the OI did not fall much, settling at 29,569 from Thursday's level of 30,297. It sure looks like some of the players here are anxious to obtain some physical metal.
The next big delivery month is December and this month took the brunt of the attack on Thursday. The OI fell from 317,182 to 307,786 for a loss of close to 10,000 contracts. The estimated volume on Friday was a monstrous 320,725 which followed Thursday's confirmed volume of 298,057. The banking heroes supplied most of the non backed paper hoping to see many gold leaves fall from the tree.
The total silver comex OI fell by only 768 contracts as these holders seem to be in strong hands. The new OI is a multi year low. Strange that bullion dealers and mints are running out of metal and OI which is a measure of demand is at these extreme lows. The silver comex has been nothing but a physical market for those that wish metal. The leverage is totally gone and after Monday night it will surely be gone from the silver market. The new OI rests this weekend at 110,785 falling from Thursday's level of 111,553. The front delivery month of September saw its OI fall from 228 to 213 for a loss of 15 contracts. We had 19 deliveries on Thursday so we lost zero contracts to cash settlements.
The front December month saw its OI fall slightly from 73,153 to 72,255. This is a minor fall in OI considering the massive wallop the price of silver endured on Thursday. The estimated volume at the silver comex was a monster, coming in at 104,984 with our banking cartel providing the short paper. The confirmed volume on Thursday was also high at 87,399."
Contrast that commentary from these figures:
1. April 29th: "The total open interest on the silver comex fell steeply by 6,132 contracts from 135,763 to 129,712. There is no doubt that the leverage for the longs suffered a bit but so did those shorts that have to pay margin requirements."
2. May 6th: "The total silver comex open interest shocked everyone with the announcement that the OI rose by 4279 contracts from 130,525 to 134,804."
So here's your clue: When the OI surges, we can say that we have found a short term bottom, and that would be a good entry point.
If anyone is willing to take the task and go through Harvey's archive and correlate both the front month and out months OI's to the price of silver, please throw on a excel spreadsheet and email me asap that would be fantastic.
Also, to any of my Asian listeners over there in Asia land. If you have any pictures of line ups at bullion shops email me at firstname.lastname@example.org please thanks.
May was a speculating liquidation. This week was NOT-it was a green lights go ahead behind the closed doors of Gold diversion to kill silver. I've never seen anything more obvious.
This Weeks COT is useless as it doesn't show us the latter half of the week. I would be shocked not to see a major + figure in the silver and gold commercial new shorts added. I guess we have to wait another week and find out how bad the manipulation really is. If there isnt a huge surge in commercial shorts added, I will no longer be reporting on the COT report, as this may now be a tool of the EE.