The specs finally showed up in the gold pit on the Comex. The gold open interest rose 12,028 contracts to 398,747, still a low number. There was some minor shortcovering in silver. Its OI went down 600 contracts to 127,776.

Speaking of silver, yesterday my STALKER source reported rumors of two very large silver transactions. Ned Naylor-Leyland, who presented at GATA’s Gold Rush 2011 in London a year ago, reported on the The Keiser Report that there are massive physical strains in the silver market due to two large silver purchases in London in the 5 to 10 million ounce range … and that the LBMA is refusing to deliver them outside of the LBMA system. It should be duly noted that Ned is very sharp and very well connected.

More bullish news from Mark O’Byrne at goldcore.com…

Hi Chris and Bill
Think this is big news and barely being reported (Reuters, FT not covered) . Interesting fact not considered is that both clearing houses start date for accepting gold as collateral is next Tuesday, the 28th, (just 5 working days from announcement) which suggest coordinated action possibly in anticipation of certain systemic or monetary 'events':

http://www.goldcore.com/goldcore_blog/lchclearnet-accepts-%E2%80%98loco-london%E2
%80%99-gold-collateral-next-tuesday

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And more fun. How about our STALKER source. It was two outs and the bottom of the 9th inning with his team down by three runs and he pulled it out with a GRAND SLAM home run. He was RIGHT AGAIN that today would be a big one if gold went through $1635 yesterday. This London trader is UNREAL!