There are still 44,366 contracts of OI in DEC gold which represents 200% of the dealer gold inventory. There are still 10,386 contracts of OI in DEC silver which represents 100% of the dealer inventory. What a coincidence that there should be a waterfall drop in gold and silver prices last night, which were blamed on the Dubai debt problem, just as the dealers were being threatened with inventory wipe out! When there is a crisis of paper instruments that are intrinsically worthless investors flock to the safe haven of precious metals…not to debt and currency that is less intrinsically worthless. It was yet another blatant psychology management exercise that has recently been exposed as being a high priority at the FED. But this time it failed!

The cavalry finally showed up to help out Custer’s Cartel and his band of trapped shorts. But unfortunately for the Custer Cartel the Indians had sub-machine guns and not bows and arrows and they completely massacred the cavalry! So, Gold Cartel, what have you got for an encore? Bring it on!

Cheers
Adrian