With the price of gold briefly breaching the $1,800 level today, a nightmare for gold shorts is now unfolding.
Breakout for gold
Quarter-day effects
June 30 (King World News) – Alasdair Macleod: Ahead of quarter days, bullion banks and market makers, who are almost always short of gold and silver futures, like to manage lower prices by triggering speculators’ stops and hopefully, for them, to get prices sliding. Their books look more profitable, and dealers’ bonuses are secured. The fact that all bullion banks do this at the same time makes their position usually unassailable.
Until now. It is not the usual speculative bulls driving the buy side on Comex, but the Other Reportable category, made up of big clients; family offices, trust funds and the like. And they aren’t selling; in fact, many of them are standing for delivery…
To learn about one of the most exciting silver plays in
the world click here or on the image below
A Nightmare For Gold Shorts Is Unfolding
A nightmare for short bullion traders is now unfolding, with gold ticking into new high ground with $1800 firmly in sight. The swap traders (bullion bank trading desks) are record short in money terms on this price rise and they have yet to close. It’s not beyond the bounds of possibility that this contract could be in crisis if the gold price rises much from here.
This quarter-day is no one’s friend. The banks have customers unable to pay rents looking for overdraft extensions, and other customers not being paid rents. This puts enormous pressure on the banks, and the fall-out could lead to a banking crisis later this month, if not in the US then where the banks are even weaker.
Safety In The Storm
In summary, gold and silver are protecting their owners from a fiat currency world in very deep trouble. As long, that is, it’s not in the banking system.
New interview after high-grade gold discovery and Tuesday’s financing announcement!
An Incredible Two Weeks
Bryan Slusarchuk, CEO: Things are moving so quickly on Fosterville South, Eric, and I appreciate that you have been there since day one and want to keep investors up to date.
Everybody knows that we have had an incredible two weeks. A new shallow and high-grade gold discovery at our Golden Mountain project, ongoing drilling at Golden Mountain and of course the corporate news regarding the spin out of two non-core assets, which represents some incredible potential value for Fosterville South shareholders.
Financing Adds To Shareholder Base That Includes Sprott & Beaty
It has been a whirlwind and things keep getting better. Today we announced a $7.5 million financing that puts our already strong treasury and balance sheet in an even better position as we accelerate drilling on our projects.
As per our previous public disclosure, we have some great shareholders such as Eric Sprott and Ross Beaty, but today’s financing is contemplated to add new, big shareholders to the mix.
World’s Hottest High-Grade Gold Region
People are starting to realize that our 4 year head start in what I think is the world’s hottest high-grade gold mining region can pay huge dividends. We have opportunities to enhance value via our ongoing drilling programs and also corporately, via the 2,700 square kilometer land package we now have acquired over a multi-year period.
We will keep KWN readers updated, Eric, and it’s my personal belief that every gold bull needs to take a closer look at buying Fosterville South, if they don’t already own it. Fosterville South, symbol FSX in Canada and FSXLF in the US.
If Gold Breaks $1,804 Look Out!
***Also Released: This Is What Will Happen If Gold Breaks Above $1,804 CLICK HERE.
***To listen to the timely and powerful audio interview where Alasdair Macleod discusses this setup with gold being on the verge of a historic breakout that will trigger a massive short squeeze click here or on the image below.
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