Norcini has been stunningly accurate in his predictions of the movement in the gold and silver markets.  Now the acclaimed trader discusses these incredibly important developments in both of these markets:  “What Japan is doing right now is unprecedented.  The Japanese are engaged in massive QE.  Their current version of QE actually exceeds the size of what the Fed has done when you compare the scale of both economies.

The world continues to witness tremendous turmoil in the currency realm, and Japanese institutions hold a staggering $6.34 trillion of government bonds, in the face of a plunging yen and virtually no yield on their bonds.  What this is creating is a massive flight of money out of Japan.  

This is impacting key markets around the world.  Yesterday, as an example, we saw a tremendous rally in silver, solid strength in gold, and a big rally in the mining shares.  But this move is very different than what we have seen in the past.  This strength in gold, silver, and key commodities, is taking place as money is fleeing Japan....

Continue reading the Dan Norcini interview below...


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“So we have Japanese institutional money flowing into gold, silver, and other key commodities at a time when the hedge fund short positions are the largest they have been in many years.

Recently the hedge funds had the largest outright short position in gold since the CFTC broke the hedge funds into their own category at the beginning of 2006.  What investors have to realize is that gold then proceeded to move from $520 to $732, which was a staggering 41% move higher in just 5 months.  

Last week the hedge funds also moved to the first net short position in silver since the CFTC put them in their own category in 2006.  It is also important to note that hedge funds are 3 to 1 short in the copper market.  

So what we are seeing is a battle of titans taking place in the gold, silver, and commodity markets.  We have Japanese institutional money taking on hedge funds.  The hedge funds simply did not anticipate a flood of Japanese institutional money crashing headlong into their short positions.

A wall of money is now moving against the hedge funds, and if the hedge funds buckle on their short positions we will see massive moves in gold, silver, and these other key commodities.  This could well be the catalyst that gold and silver investors have been waiting for to turn these markets higher in a violent fashion.

Silver had a move that shocked the world from $8 to $50, or a amazing 525% advance in just 30 months off the 2008 lows.  We also saw gold move from $680 to $1,923 in 35 months, or a stunning 183% move in gold.  These remarkable advances came on the heels of QE1 and QE2 which totaled $2.5 trillion.

Because QE3 and QE4 combined are over $1 trillion each year, and Japan’s stimulus is $1.4 trillion for just this year, we have the same setup which caused gold and silver to skyrocket off the lows in 2008.  The potential for another violent advance in both gold and silver is certainly there, especially with the hedge fund short positions which are currently in place.  Once again this type of move would definitely shock the world.”

***IMPORTANT - The first scheduled meeting that Jim Sinclair is holding in Toronto is already completely sold out.  Due to popular demand, a second and final meeting in Toronto has been scheduled for this coming Friday, April 12th at 1 PM EST.  For details and to sign up to attend this event while seats are still available CLICK HERE.

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Eric King

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