Monday, September 14, 2009
China to blow open COMEX and send gold/silver to the moon
The Chinese government is currently encouraging it's citizens to buy gold and silver. As a consequence China is considering walking away from responsibility on certain OTC derivative contracts held by foreign banks as counterparties.These unlisted OTC derivative contracts include massive short positions in both gold and silver, but especially in silver, and are used to back the listed COMEX short positions of the large commercials in both gold and silver. Sticking with these contracts could force the gold/silver price down. If the price of gold/silver were to fall it would be suicidal for the Chinese government, following their advice to their own citizens to invest in gold/silver, as revolution could follow on the back of financial losses. Boom goes COMEX then, and gold to the moon!