Topic: An end to Naked Shoritng on Comex?

[Weisshaupt]

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/7/6_Whistleblower_Maguire_-_This_Will_Destroy_Gold_%26_Silver_Shorts.html

China is going to open a new Gold and Silver exchange that will be all physical metal.

By creating the first ever rolling spot contract, Chinese bank customers will for the first time have ease of access to 10 ounce gold contracts in Renminbi directly from their bank accounts and with the click of a mouse. ...

One of the key points here Eric is that many of these [comex] shorts are naked and heavily leveraged.  Thus for every physical ounce of gold and silver taken out of the physical market and into this new exchange in China, it will force many multiples of that to be covered in the paper market.”

I also note that Gold and Silver prices seem to be almost completely divorced from Dollar movements - I can only assume that is because the majority market has moved from being dollar denominated  to other currencies..

[Libertas]

I think your take on currencies & gold & silver are correct, the directions each take are not behaving as they should if dollars were the primary medium, it could be overseas holders of dollars completed exchanges and therefor dollar transactions comprise a smaller (more domestic) share of commodity action.  This move by the ChiCom's needs to be watched awfuly close though, everything those rotten bastards touch is designed to skim something off for them, so a big caveat emptor to potential customers!  Plus, depending upon the size of the margin calls on existing leverages accounts, it will lessen the price increase due to any new demand for physical, but the impact is hard to gage since there as been some purging of neked holdings in at least 3 waves already.