Last week a three-man team from the Gold Anti-Trust Action Committee (GATA) presented to an audience of more than 70 people including portfolio managers, brokers, journalists, and gold mining executives in London. The event was hosted by Adam Fleming, chairman of Fleming Family and Partners and South African gold company Wits Gold.
Peter Hambro, chairman of Peter Hambro Mining (and former gold trader), was in attendance and highlighted the significance of the massive buying of call options in the June and December 2009 Comex gold contracts. Last week’s Thunder Road News discussed Adrian Douglas’ analysis of this situation and noted that his sources are telling him the buyers are the two banks closest to the U.S. government. Hambro believes that this option buying might reflect the closing out of carry trades.
Go to the web site…
I haven’t followed it closely enough but the July data for silver looks high to me. Perhaps someone more familiar could check it out? The data I have shows 9094 volume and 56091 open interest for July 2009 silver. I believe each contract represents 5 1000 oz bars? This stuff is over my head.
Also, if the recent surge in gold option buying does reflect the closing out of carry trades, what does that mean? That precious metal manipulation looks like a damn that can’t hold so they’re giving up on that angle before their losses run away?
The most confusing thing to me is trying to figure out how paper money and credit are flowing with all those new dollars and stolen trillions… somewhere.
Oops make that up to 9923 volume within the time I was writing this.
You might like this story about a local currency in Brazil Catherine.
http://uk.reuters.com/article/lifestyleMolt/idUKTRE54B00E20090512
I particularly liked Tim Harford’s angle that it “might help people feel good” but he wonders “if the energy it takes to set up could be used for other local projects.” hahaha. Yeah, I’m sure they’d be better off channeling their energy via free-flowing currency through chains of global monopolies. They introduce Harford as an author (expert) instead of as an IFC guy.