Based on preliminary data, some of the details (known to be flakey) show the same stubborn resistance to price rise for gold. MAssive increases of OI indicating longs not intimidated by the paper pushers. In addition there is a new feature that croped up. The ratio of futures (non-binding contracts to buy actual physical) to options (casino bets on gold passing certain levels) is increasing. Stated another way, play has just shifted toward the physical side.
Having never seen this before, I am wondering if this is just people/institutions that want physical before it becomes unavailable. Or could it possibly be that the Boyz are looking to source some physical to service the Dec in the money calls should they not be able to get the price of gold down.
December is a key month for futures and options. The numbers are becoming extreme as OI climbs and longs remain (so far) stubbornly strong in their positions. Adding to the degree of strangeness is the continued illogic of the ETF's supposed inventories.
We have all heard this before, but "it seems different this time". A few weeks will resolve this, but I have to believe that the incredible under performance of the pm mining shares is a feature of the Boyz activities to discourage potential pm investors.
Midas and contributors feel strongly that we are witnessing a commercial signal failure. I can see the above fitting well in this possibility.
If you are planning on buying physical anytime in the near future, sooner may be better than later.
