It 's been a wild and volatile ride for Gold over the last several days. In fact, the most followed index of Gold stocks (HUI), has suffered a peak to trough drop of more than 15% in the last four days! As to the bullion itself, the drop has been a relatively meager 6.5%.
I wish to reiterate that my prior stated opinions regarding Gold and Silver have not changed one iota. I continue to maintain that not only has this sharp correction been long overdue, but actually NECESSARY to re-energize a market that was threatening to run away.
My own personal guesstimate is that Gold is in a temporary lull of some sort and preparing for a new launch upward. Obviously, I couldn't possibly predict as to how long this pattern will exist. However, I remain convinced that this sharp break is nothing but a mere holding pattern from which we will shortly see a resumption of the upward trajectory. And, with a level of vigor that we have yet to experience.
I can't guarantee any of this, since I'm far less wise than the market! And, realizing this, it would be both irresponsible and unethical for me to claim otherwise.
As I've pointed out repeatedly, physical gold is in a position of extreme short supply. So is Silver. I believe that there will come a day that this will be obvious. I, furthermore, maintain that BOTH Gold and Silver will be caught in what's known as a "short squeeze".
A "short squeeze" refers to a situation in which the seller is required to deliver, but cannot meet the delivery as a result of a shortage in their supply. For example, there are thousands of cases where shares are "sold short" and the sellers are incapable, or unwilling, to part with them. As a result, a veritable buying panic ensues as the short sellers are required to produce the "short sold" item within a very narrow window of time. This is a matter of law!
There exists a very HIGH level of short position in Gold, Silver and related mining stocks. The beauty of this, is that the bulk of these positions are now "under water" and must be honored. This means that a HUGE number of buyers will be FORCED to buy.
All of this points unequivicolly to one conclusion: Gold and Silver are destined to go much, much higher and very soon. All I can do is point out this extraordinary situation that I know exists and suggest that you act accordingly. In my opinion, those that act on this information NOW will be granted a once-in-a-lifetime opportunity.
In my most humblest of opinions, I pray that you consider my advice.
Your faithful servant.