Gold & Silver Shorts Trapped As Scramble For Metal Under Way

Posted | 05/09/2012 / Views | 2611
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Today James Turk told King World News the metals shorts have problems here:  “There are a lot of people who want physical silver out there and they are scrambling for it.”  Turk also said, “I’m not sure you are going to see many pullbacks in silver, particularly given the circumstances of the market, and the fact that there are so many shorts and so much money out there on the sidelines.”

Turk also discussed the move in gold, but first, here is what Turk had to say:  “The physical market remains very tight, and I think you are seeing that in the way silver has moved over the past couple of days.  This is more than just a short covering, this is a scramble for physical metal.”

James Turk continues:

“I think the key thing here, Eric, is there is a lot of money on the sidelines.  It  built up during what’s been almost a year and a half correction in silver, and a correction in gold that’s gone on for eleven months, and it stayed there while people were on vacation.  

Now that people are coming back from their summer holidays, they are starting to commit to the markets, and you can see that in the silver price....

“I think that’s going to continue over the next few weeks.

It’s going to start accelerating on the upside.  If you look at the long-term chart of gold and silver, yes gold has been up 11 years in a row, but the way it’s been rising, it’s been rising at an ever-accelerating rate.  

I think you are going to start seeing some real upside in the not-too-distant future.  In terms of targets, new record highs before the end of the year is pretty much a done deal.  $2,000 gold is coming.

Whether we see a new high in silver this year or the beginning of next year, I don’t know.  But as we said in that (interview) yesterday, once silver gets over $50 an ounce, then it’s in stage II of its bull market, and that’s when you are going to start seeing some real price appreciation, and a lot of attention being paid to the silver market.

I’m not sure you are going to see many pullbacks in silver, particularly given the circumstances of the market, and the fact that there are so many shorts and so much money out there on the sidelines.

In fact, that may be what propels silver higher here, Eric.  A lot of people who normally own it (silver) don’t.  There are a lot of shorts who may be caught.  There are a lot of people who want physical silver out there and they are scrambling for it.

It (silver) may not go back under $30.  We did a piece back in early August and I said $28 (silver) is history.  Sure enough, I don’t think we’re ever going to see $28 again, ever.  It may be the same case with $30 silver, we may not go back to $30 anymore either, given what I am seeing in the market at the moment.  There’s just so much demand for physical gold and silver.

It’s been a bull market for more than a decade.  We still have a long way to go for one simple reason, none of the problems that have been driving gold and silver higher all of these years have been solved.  If you go back in monetary history and look at how the solution is finally determined, it comes with a higher gold price.”


Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/4_Gold_%26_Silver_Shorts_Trapped_As_Scramble_For_Metal_Under_Way.html