GOLD 0.51% $1,391.7 gold futures

potent recipe for explosion in gold...

  1. 24,765 Posts.
    "...the governments and central bankers of the world have pretty much all decided that printing currency is the answer to this financial and banking threat. Lots and lots more dollars, euro, pounds sterling and yen will now be out there. What leverage used to accomplish is now being replaced by an actual mountain of paper and electronic dollars. That’s ironic, isn’t it?

    At the same time the newswires are flooded with reports of mining companies having to close existing mines due to low prices of metals. New mines that were due to come on line are also being shelved. So, at the same time that we have the highest premiums since 1980 for physical gold and silver – when one cannot actually find gold and silver bullion at anything even close to the futures-dominated spot price - we learn that there is a huge increase in the number of “currencies” out there about to be chasing a vastly reduced amount of physical production.

    Short term virtually anything is possible in this crazy futures-dominated market, but shouldn’t that be a potent recipe for an explosion in precious metals prices over the longer term? Got gold? Got Silver? Got mining shares?"

    Full article "Got Gold Report – COMEX Commercials Least Net Short Gold In Years" by By Gene Arensberg at http://www.resourceinvestor.com/pebble.asp?relid=47779

 
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