The real problem with the Comex is that there is no transparency. No one knows for sure what the true position of any one player in the market really is. Are they really fully hedged when you think they are short. The big banks like JPM have another weapon. They are the government. If they start to loose they will change the rules.

For that reason I tend to think that they want gold to go up. Just not too fast.

I don't think they have much choice. The price of gold, like so many other commodities today is in international hands. They can muddy up the waters to a certain degree and perhaps scare off Americans who tend to think of NY as the financial center of the world (no longer true) but they can't stop Chinese, Indians and Russians from buying gold in their own markets.

Gold may not be a good hedge against inflation, but it has always been a bridge across chaos and disorder. Besides, you don't want the price to rise too much until all your wealthy friends have their stake, right? Sort of like getting off the Titanic - lifeboats only for first class passengers, and too few at that.

ebear