Alasdair Macleod: ALERT: Big Money Worried About Collapse – Buying Massive Amounts Of Of Physical Gold

Alasdair Macleod says that big money is worried about a full-blown financial collapse and these fears have prompted some large entities to buy massive amounts of physical gold.

Comex
(King World News) – Alasdair Macleod:  Gold and silver followed different paths this week, with gold rising $53 from last Friday’s close to trade at $1735 in morning trade in Europe. Meanwhile, silver fell slightly on balance by 2 cents to trade at $17.65.

This divergence can be laid at Comex’s door. The gold contract is struggling with the bullion banks trying to reduce their short positions without driving the price higher. Last week’s fall to the low $1670s was no more than an attempt to shake out some stop-losses against an improving background for the stock market. The lower levels obviously found buyers, which took gold back to the top of its recent trading range ($1744) yesterday.

Meanwhile, in silver the swaps as a group are slightly short, and patiently working towards going long. In their favour the July contract is winding down, but despite having to pay between 15–20 cents premium to roll into September, buyers are not only paying it, but open interest is ticking higher. This is shown in our next chart.

Sharply rising open interest tells us that the underlying trend is bullish. Despite the massive rise following the dramatic knockdown earlier this year — evident in our headline chart — silver still has much catching up to do. Our next chart is of the gold/silver ratio, which shows that silver appears to have passed a major turning point.…..More Here

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