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There have been so many developments since I wrote my article, A Gold Price Explosion Just Around The Corner?, in which I talked about several catalyst that could be the source of a gold price explosion. I hope to do an update on that article as some of these developments may be affecting the behavior of the big bullion banks that always seem to be gold and silver short sellers on Comex. Are we seeing the early warning signs that they are starting to lose control?

GATA.org, Ted Butler, and many others have made the case that gold and silver prices have been managed by big bullion banks like JP Morgan and HSBC via large naked Comex short positions. If these big bullion banks were not allowed to place these extremely large naked short positions, it is believed that gold and silver prices would be substantially higher.

The commercial bullion banks lately seem to be having trouble standing their ground and presenting a unified front like they have typically done in the past. Here are a couple of noteworthy analyst discussing this in a bit more detail.

Silver analyst Ted Butler weighed in this week on the strange behavior of the commercial bullion banks in his weekly interview with King World News. It’s a pretty short interview so I would encourage you to take a few minutes and listen to it.

“Ted butler speculates from evidence that Comex futures trading may be losing influence over gold and silver prices, that the big commercial shorts in silver may be having trouble covering in their usual way, and that the gold exchange-traded fund GLD may be having trouble getting delivery of metal. The interview is about 6 minutes long and you can find it at King World News here” -GATA.org

Also Gene Arensberg had this to say just yesterday:

“We have the strange situation where some of the Big Sellers are not — that’s NOT — acting in a way that shows they are confident in lower gold and silver prices even though gold is not very far from a new all time high. However, the gold open interest is too high to be aggressive on the long side ourselves unless we become convinced that extraordinary demand is coming in — not just soon, but coming in immediately.” – Got Gold Report

What are your thoughts on this?

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