James Turk – Gold and Silver Shorts are Losing Control

Posted: December 30, 2010 in Financial Survival, Gold, Investing, Precious Metals, Silver

According to James Turk gold and silver are ready to explode higher, shorts are losing control.  In an interview on KWN Turk states “gold and silver are the pinnacle of money and this is becoming increasingly apparent to investors around the world.” 

Folks we are ready for an upside explosion.  Turk goes on to say the following:

“The fact that we are starting to see the metals go higher before the end of the year just goes to show that the shorts are losing control.  The year-end window dressing is the most important, and they can’t keep the prices down to minimize the losses they are already carrying on their books.  So it looks to me like we are getting ready to blast off on the upside.

 There are really two factors that are driving the precious metals markets higher:

 First, quantitative easing is having its expected effect.  QE is debasing the purchasing power of the dollar, and that is causing gold and metals prices to rise.  The second factor is the ongoing demand for physical metals in preference to any paper substitutes.  I think what is likely to unfold in the first half of 2011 is another Lehman type of event, but the net effect will be somewhat different.  Instead of a rush for liquidity, the primary objective will be a rush to safety and that means avoiding counter-party risk.  The best way to do that is to own physical metal.”

Next year is going to get wild, shorts cannot keep the prices down.  With silver being such a small market, $19B according to the Wall Street Journal ,we could see an outright explosion.  When you add J.P. Morgan, the COMEX, a global currency war and the loss of confidence in fiat currencies, you come to the conclusion that silver’s upside may shock many people next year.

Full Article Here

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