Flight to Gold and Silver Safety on Fears of Greece Debt Default
Commodities / Gold and Silver 2011 May 21, 2011 - 03:15 PM GMTBy: Jesse
"We now know that there has been a dramatic reversal in world central bank thinking, and instead of selling gold as they have been doing, world central banks, on balance, are buying gold. We know that China, Russian and many Asian countries are urgently increasing their gold-to-reserves ratio.
Rising gold is also putting pressure on the silver shorts. I've heard that there is now more silver shorted on the COMEX than is available in physical silver.
A few weeks ago, shorting silver was considered a "no-brainer." In this business, if you run with the crowd, you're liable to get trampled to death...
But more powerful than anything else will be the trend of the stock market. If the bull market dies here or even if it corrects severely, the pressure will fall heavily on the administration and the Congress.
For this reason, I expect the rest of the year 2011 to be 'wild and wooly.' I expect government lies and propaganda to reach a crescendo. I'm bracing myself for a parade of surprises. Politicians love power and perks. But to keep those two, they must also keep their jobs. Therefore, coming up, I expect an extreme in dirty politics and internecine political battles.
The year 2011 should wind up as a banner year for political and economic propaganda, all lies and bull-shit.”
Silver Shorts Liable to Get Trampled - Richard Russell
There was a remarkable divergence in the markets today as gold rallied sharply, dragging silver behind it with a lag, while stocks headed lower.
The impetus was clearly the Greek debt decision by Fitch, as the markets moved right with the announcement, breaking up the usual option expiration shenanigans.
Let's see how this progresses next week. This breaking of the mold will likely not continue without interruption, since old tricks die hard.
But it may be a portent of things to come. Great events and changes are in motion.
By Jesse
http://jessescrossroadscafe.blogspot.com
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