In Jim Cook's Archive


What happened last Sunday evening when gold and silver began trading is one for the record book. Basically, it pitted the managed-money traders (hedge funds) who were long against the commercials (big banks) who were selling short. When trading opened on Sunday, silver and gold surged higher with gold making an astonishing new high of $2,152 on the active February contract. Then overnight, the price was driven down to show a loss. This was all a big paper caper. In the real world of physical metal, bullish pronouncements are rife. Gold demand from Asians creates record buying and industrial demand for silver generates annual deficits and an unfolding shortage. The artificially low price for silver comes from the manipulative short selling on the COMEX and that tactic reduces supply and increases demand. The trading volume on Monday set records. As a shortage worsens, no power on Earth can keep the price suppressed forever. As silver analyst Ted Butler preaches, get ready for the “big bang.”

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