June and December COMEX Options turn Bullish

The COMEX December 2009 gold option call contracts outnumber puts by 130 percent.

In the silver market, the COMEX June 2009 call options exceed puts by 80 percent. December 2009 call options exceed puts by 68 percent.

Activity in options for both metals is especially concentrated in the June and December contracts.

This data to mean that smart money is being positioned in anticipation of a massive rise in the price of gold within 30 days and in silver's price within the next 60 days. Then he looks for another jump in prices by December. There could be a price pullback in between the two major rises.

The bulk of activity in precious metals options tends to be from sophisticated investors. Both the gold and silver futures markets are now bordering on backwardation, which signals a near-term major physical supply shortage.