Tightly wound spring

Posted | 30/04/2014 / Views | 2013
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In the last week we’ve seen US house sales plunge and new mortgage applications hit 14 year lows; China announced they will commence a Yuan based trade of oil and gold (not the standard USD) and a global payment system in Yuan; tensions with Russia have escalated over Ukraine; the US exported a massive 80 t of gold (57t to HKG alone) in January; Euro Central Bank (ECB) president gave the strongest indication yet they are about to start printing money to ‘save’ the Euro; Deutsche Bank announces another capital raising to prop it up and reveals $75 trillion in derivatives (5.7 times total Eurozone GDP!); and gold and silver prices have been ‘hit’ twice whilst we in Australia slept but rebounded immediately showing resistance to attack by the short sellers.  The thing is there are any number of factors that could see a loss of control by these short sellers as gold and silver prices rally strongly.