Today London whistleblower and metals trader Andrew Maguire told KWN that hedge funds are about to be crushed on their massive gold short positions as the price of gold spikes higher.
Gold Price Spike Is Coming
August 3 (King World News) – Andrew Maguire: “Eric, bear in mind that insiders had the NFP (Non-Farm Payrolls) data by Monday, and, accordingly, spent the week profitably positioning for today’s official release. But as the NFP dust settles, a strong bullish reaction in all the crosses related to gold is being observed…
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Andrew Maguire continues: “The surgically timed (surprise) Chinese margin increase from 0% to 20% rinsed and dislodged a large percentage of leveraged spec yuan shorts. The raising of reserve requirement for FX forwards to 20% is gold bullish, and indeed evidenced an immediate bullish gold reaction in the correlated CNY/Gold cross.
Trump Trade War Briefly Pushes Yuan & Gold Price Lower
Given that the house (CME insiders) is heavily long against lured-in record naked gold short specs in the Comex-run casino, the house always wins and that means a huge move higher in the gold price is now upon us. The Open Interest structure along with the Opex footprints are evidencing commercials pricing in higher gold prices further out on the curve. Sentiment is in the tank, so expect rallies in the gold market to continue being shorted. But all the necessary components are in place to suggest a bottom is now firmly in place. A pit close above $1,235 would affirm this. Short Interest has been foreshadowing a move higher for days.
China On Track To Log Record Year For Gold Imports
While on the subject of China, as we have been observing, (flying in the face of all the bearish World Gold Council gold demand estimates), China is on track to log in a record year for gold imports. How has it been doing this? By playing the insiders at their own game, using leveraged paper gold to spot-index gold prices and to buy physical with an equally devalued yuan. Since May we have noted Swiss refinery backlogs, which accelerated after Trump’s mid-June trade war escalations. So contrary to reports of gold being out of favor, it is in massive demand although this fact is completely masked by sucked-in specs chasing bearish chart patterns that have zero to do with a strong physical market.
Hedge Funds To Get Crushed On Gold Shorts
As a result of discounted physical gold with little on offer (other than producers forced to accept the bid price into rigged PM fixes), the physical market is so tight that the legacy market is forced to fractionalize, and pool allocated gold. This is increasingly evident by refusals to deliver clients’ allocated gold — something we have been providing details on in recent KWN interviews. So that’s why it is the second half of this year that is going to blow people’s minds when it comes to the gold price taking off violently to the upside. Meaning, the hedge funds are going to get crushed on their gold shorts.
The failure-to-deliver excuses have ranged from Swiss and German capital controls limiting cash and cash equivalent withdrawals to 100,000 euros (gold being categorized as cash), to outright demands to cash-settle clients. These are clients whose banks have dared to charge full allocated storage fees for what amounts to fractionally held, unallocated pooled accounts. These recent refusals to deliver telegraph a disconnect between strong physical demand and an unprecedented record naked short, synthetic, undeliverable structure which has expanded to such extremes that it has spilled over into the legacy conduit.
There is no argument from industry apologists that unallocated gold is leveraged at roughly 100 ounces of paper claims for each 1 ounce of vaulted physical. However, it was never envisaged that there would be a sudden series of physical delivery requests to withdraw gold in physical form. But this is exactly what is happening, and we are doing our utmost to get as many allocated account holders to at least ‘enquire’ about taking physical delivery. This has resulted in a slew of refusals. We have drawn attention to two major failures in KWN interviews and we will be following up on further developments very soon. In the meantime, make sure that you have your physical gold in your possession.”
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