Register for Free
Post comments, receive updates via email, gain access to exclusive content, and more.
Spam Safe!
GATA Claims To Have Evidence Of "Massive Physical Short Gold And Silver Positions That Can Not Be Covered"
When I was in the institutional gold arb business in the early 80's, we did not use the futures markets exclusively to cover longs or shorts.
The forward markets were also used for this purpose as the management of margin calls associated with futures was manageable, but we did not want too much exposure via COMEX.
Is there still a forward market in existance?
GATA - they either find something bullish of gold and release it, or they dont release it. I dont trust any totally one sided research firm. Its like listening to Phillip Morris and 40 straight years of research. Hey, whadda you know, smoking doesnt harm you. Not one study in 40 years that determined smoking was bad for your health (I dont know that these numbers are true...just making a point)
Investigative bias is massive in GATA, and therefore I feel better off scanning many sources of information in determining if there is some gold scam going on.
By the way, when GATA says "massive evidence" and then you read their fine print, its always very circumstantial and really a stretch to conclude definitively that anything wrong has happened. And yes, I have spent many hours reading their reports.
When it comes to betting your wealth or security on anything, its smart to keep an open mind. I have read arguments on this site for and against gold....and I find it interesting how strong peoples bias is, and how no matter what nothing will ever change their opinion. Keep an open mind....nothing is certain. Overconfidence in an environment as volatile as we are in is a killer.
The problem is, and I know you don't believe that manipulation occurs, but humor me, is that with a manipulated market, timing a breakdown of the manipulation is nearly impossible.
I need to clarify this. I have never said that manipulation doesn't occur. What I said is this:
Market manipulation hypotheses are counterproductive to an effective trading (or investing) methodology .
The reasoning behind this is simple: investor psychology. A good investor refrains from applying a value or expectation to an investment. Instead, the good investor acquires an asset when the "market" finds little value in it, and sells it when the market finds great value in it. When investors/traders attach a value or expectation to an investment for any reason, the investment becomes part of their self-image.
By identifying with an investment, the investor tends to buy an asset when its favored by the market because owning it makes him feel good about himself, and sell an asset when its out of favor with the market because holding it makes him feel bad about himself. In the world of trading, expectations breed emotion, and emotion causes one to buy high and sell low.
Just one man's observation and opinion, please don't burn me at the stake.
A good investor refrains from applying a value or expectation to an investment.
Generally I'm with ya' on that Jeff. However, these are, as Confucious might say "very interesting times" that we live in.
That sort of makes the rules change. That said, my investments in gold are driven by an "insurance" mindset. In other words, if TSHTF situation does not happen, then I fully expect to lose part of my capital.
No, I'm not burning you at the stake. :) But we do seem to have a fundamental disagreement over at least the degree of string pulling that occurs in the markets. Given what I have seen on other sites, I'd say our disagreement is on the more cordial side.
The Matrix is a system, Neo. That system is our enemy. But when you're inside, you look around, what do you see? Businessmen, teachers, lawyers, carpenters. The very minds of the people we are trying to save. But until we do, these people are still a part of that system and that makes them our enemy. You have to understand, most of these people are not ready to be unplugged. And many of them are so inured, so hopelessly dependent on the system, that they will fight to protect it.~ Morpheus
Located in Ft. Lauderdale, FL. PM me.
The problem is, and I know you don't believe that manipulation occurs, but humor me, is that with a manipulated market, timing a breakdown of the manipulation is nearly impossible.
I need to clarify this. I have never said that manipulation doesn't occur. What I said is this:
The reasoning behind this is simple: investor psychology. A good investor refrains from applying a value or expectation to an investment. Instead, the good investor acquires an asset when the "market" finds little value in it, and sells it when the market finds great value in it. When investors/traders attach a value or expectation to an investment for any reason, the investment becomes part of their self-image.
By identifying with an investment, the investor tends to buy an asset when its favored by the market because owning it makes him feel good about himself, and sell an asset when its out of favor with the market because holding it makes him feel bad about himself. In the world of trading, expectations breed emotion, and emotion causes one to buy high and sell low.
Just one man's observation and opinion, please don't burn me at the stake.
Captain Sheeple