The Footprint Of Control Has Changed For Gold & Silver

In my commentary entitled Money Flow Footprint For Silver Has Changed I revealed how the "normal" money flow footprint of control had been smashed. Commercial traders, or connected money, has been buying strength rather than selling as silver has risen to levels not seen since 1980. This subtle yet highly significant change in money flow likely reflects the increasing influence of the spot market (physical) on the paper price.

Silver London P.M Fixed and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:


The change in money flow relative to price, or shift in control, is beginning to show in the gold market as well. The chart below illustrates the emergence of buying rather than selling strength. This subtle change of money flows within the gold market, similar to silver, suggests stress to the mechanism of paper control.

Gold London P.M Fixed and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:


These subtle changes in money flow in silver and gold likely reflect the growing stress within the financial universe. While the media focuses on the importance of Dow 11,000, they have almost entirely ignored what can only be characterized the nation’s top story. The class action suits under RICO statue filed against mortgage services that those that securitized them into pools for international sale raised serious questions to status or value of the collateral behind these loans; Loans that were already gifted an illusionary value by mark-to-model rather than mark-to-market accounting.

Jim Sinclair’s latest commentary explains it as follows,

I told you about this last week as a class action with a RICO statue was filed against servicers acting for international investment banks to foreclose on loans that represent the collateral for securitized mortgage debt, a fraudulent OTC derivative.

The banksters tried to sneak through a bill that would make their criminal actions legal. The screams were heard in the White House and before the bill passed and all its requirement the President vetoed it. That occurred even before the bill had completed it required procedures. We are now in Crisis #2 which can eclipse anything you have seen yet because of the size of the creation of this pariah in the OTC derivative disaster.

This will not pass quietly. It is going to tear the dickens out of what is left on the financial firms that brought the horror to the Western world. It will be orders of magnitude uglier than anything you have seen so far.

There are no coincidences in the financial world. When unusual changes in the money flows lead and/or coincide with important real-time event, they tend to foreshadow significant financial and social changes. While the headlines urge complacency and reinforce the old paradigm to comfort those that abhor change, they tend to do so at great expense to those that follow them.

Source: jsmineset.com