James Turk -The Short Squeeze Is On

Posted: September 28, 2010 in Current Events, Gold, Precious Metals, Silver

We have been patiently waiting for the precious metals short squeeze.  It was only a matter of time before bullion banks would be forced to cover some of their naked short positions.  We have now broken through key resistant levels in both gold and silver, which will likely force bullion banks to continue covering their shorts while propelling gold and silver higher.  This is a perfect storm.  Let’s review.

  1. We have broken through key resistance in both gold and silver
  2. Central Banks around the world are openly saying they are devaluing there currencies which is bullish for gold and silver
  3. It is now open knowledge that bullion banks are levered anywhere from 45 to 100 times per ounce!!  This is completely unsustainable and bullion banks are losing control.  Before this fraud is over it will be larger than any financial fraud we have seen. 
  4. People around the world are rapidly loosing confidence in fiat currencies backed by nothing, historically they all fail, this is no exception.  Demand for physical bullion is exploding.
  5. Our government has been suppressing the price of gold and silver for decades utilizing bullion banks.  Think about that fact.  With housing our government was working hard for years trying to keep the prices up.  We have seen what happens, housing is still going lower.  Would you rather be where the government is trying to keep prices up like housing or force prices down. 
  6. Adjusted for inflation gold should be around $2,250 and silver around $75.  Both are still cheap!!
  7. Silver is still well off it’s all time high
  8. Are global financial system is hanging on by a thread.  Any collapse will cause more fear and more money will move to hard assets.
  9. We are at the brink of war in the middle east, yet again.  If war breaks out this will cause fear and people will flock to gold and silver
  10. Hard asset bull markets are caused by uncertainty and fear.  We have plenty of both.

These points cover the majority of the catalyst’s for gold and silver, I may be missing a few.  Here is James Turk discussing the short squeeze is on.

  1. […] rocket science, buy and be thankful you are still early in this bull market.  here, here, here, here, […]

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