Saturday, July 19, 2014

Debasement of Money Drives Gold and Silver Higher

Gold and silver are now back at support, around $1,300 for gold and just under $21 for silver. And the price manipulators are walking away with big day-trading profits. They are covering here at support all the shorts they sold last week and early this morning when Europe and the US were asleep. And because the shorts they put on this morning are traded intraday and mainly off the Comex, no one will ever see any Comex or other exchange report of their huge build up in short selling and the disappearance of these positions later the same day.

It is tough living with the irony of it all. There are record high prices everywhere except the gold price and the silver price. Many stocks, bonds, works of art and real estate in many safe-havens around the world are already at historic highs. But it will change.

We have to put aside today’s drubbing and focus on what’s important, namely, what drives the gold price. It is of course central bank debasement of currencies, which is making gold and silver increasingly undervalued and explains why both precious metals remain in uptrends that began over a year ago. And notwithstanding what happened today, let’s remember that both gold and silver are up 8% so far this year.

- Source, James Turk via King World News