Monday, March 19, 2012

The Paper Shorts can Only Push Gold and Silver so Far

"The auction for the Greek credit default swaps concluded smoothly, suggesting the Greek default would not be disruptive. So the shorts had every chance today to deliver another crushing blow to the precious metals to continue the selling pressure from last week. But it didn't happen, Eric. The precious metals came back and put in a good day by holding above important support at $1650 for gold and $32 for silver.

So while the precious metals market may appear quiet on the surface, there are some meaningful crosscurrents going on underneath. Today's action is another good example that the paper shorts can only push the gold and silver market so far, even with news that should have helped them pressure prices...."

- James Turk via a recent King World news interview, read the full interview here: