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The rats are jumping ship

Oct 07, 2010

The super-rich are dumping dollars and buying gold in every greater amounts. This appears to be behind the recent rise in gold prices. They are now at nearly $1350/oz, and silver has topped $23/oz.

http://www.reuters.com/article/idUSTRE6932NR20101004

If these prices hold, the big silver manipulator, JP Morgan, is going to lose hundreds of millions of dollars. According to reports, they have shorted the market for years in the attempt to keep the price of silver as low as possible.

Whenever the contracts come due, they drive the price down so that they don't lose money settling the contracts. But at some point they will be overwhelmed by the sheer panic and sales volume driving up the price. Even JP Morgan will not have big enough pockets to drive down the price.

Perhaps that will occur in December. It will be interesting to see how the price war will proceed. If JPM succeeds, then they will simply create another good buying opportunity, since the price will again be artificially low.


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Category: Financial

Dr. Stephen Jones


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