Wall Street Paper Gold Posts Record Short Position

The attack on gold by Paper money Wall Street gold persists at a relentless pace.

We find that speculator shorts are at record highs

Writes the Zero Hedge: (italics and bold original)

Premia for gold bars (physical over paper) rallied to their highest since late-2008 according to SocGen, even as 'professional' investors look to position the exact other way. The combined short positions of futures and options speculators in COMEX gold is now at a record high for the third week (having surged from 4.3 million ounces in late September to a a stunning 13.9 million ounces short now. At the same time, Gold ETFs have only seen one in-flow day in the last 34 days. It seems investors are well-and-truly on one side of this boat - even as price continues to buck the supposed structural weakness.

COMEX Gross Short positions...

ETF Holdings...

but price is now ignoring the flows (despite the protestations of some in the media)...

The Zero hedge earlier pointed to more signs of massive draining of inventory by JP Morgan at the Comex.

Finally the Zero Hedge quotes Society General’s research (bold original) 

Shortage of metal drives premium higher as customers told to wait for delivery

While many professional investors looked to exit the market, the opposite response in the physical market to this recent price fall has also been dramatic. The price drop ignited a buying frenzy in Asia and other parts of the world, leading to a shortage of gold bars and coins in Hong Kong, Singapore and Tokyo, and helped the metal stage a rebound. The sudden demand surge caught many traders off guard and sent premia for the yellow metal soaring….

While investment bar and coin premia has eased from the frantic highs, they remain at elevated levels in several markets, with robust demand surging at every retracement in price. Mints and refineries continue to struggle to deliver supply chain orders with up to a one-month wait for delivery. For now though, there appears to be a growing disconnect between paper and real gold.

The tensions between real physical gold and Wall Street gold have been intensifying. Wall Street keeps draining its gold inventories, but physical gold markets remain great robust.  One is about to give. We will see soon which gold market eventually will dominate.