In short, during periods of "speculator" demand for COMEX gold exposure, the market-making Bullion Banks create new contracts in order to dilute the overall supply and mitigate the price rise that basic economics predicts would follow from increasing demand. As soon as that speculator demand is exhausted, The Banks utilize any price weakness to exacerbate the selloff and panic those very same speculators into selling. As speculators sell, The Banks buy back and cover their ill-gotten shorts, total open interest declines and the entire process is reversed. In this most recent event, the price of Comex gold rose $115 ... (full story)