ospraie management LP is shutting its flagship commodity hedge fund after it lost almost 40% this year. liquidating its positions could place further pressure on commodities (like gold and silver, for instance.) the disconnect between futures and physical metals prices, explained by gata:

As we know from Ted Butler’s work, two or three banks, most likely representing the US Government to some degree, went massively short gold and silver going into the recent precious metals highs. In silver, two BANKS increased their positions five-fold, and in gold, they increased their positions eleven-fold … having to do so because it is a much larger market.

Then, The Gold Cartel and silver price managers made their move, pressing hard to the downside, as it was coordinated with an orchestrated dollar rally. We learned specifically yesterday about the pressure Paulson put on European allies to go along with our currency intervention. The attack on gold and silver was brutal and was incredibly effective BECAUSE the fundamentals were, and are, so BULLISH.

A pro like Dwight Anderson, who knows commodity metal market fundamentals as well as anyone in the world and is VERY highly regarded, is blown up because what was INITIALLY perpetuated, and followed up on by The Gold Cartel gang et al, was almost beyond comprehension. The price collapse was so counter to the fundamentals and to rational thinking.

This helps to explain why we are receiving report after report of incredible demand for gold from all over the world, and continue to receive reports of silver shortages in the West.