Today Alasdair Macleod spoke with King World News about the real reason why silver is up over 6% today, plus gold sees massive breakout.

Massive Gold Break Out
July 21 (
King World News)
Eric King:  “Alasdair, we’re seeing these breakouts in the gold and silver markets.  That $1,820 level in gold fell, and silver just seems to be relentlessly pushing higher after its breakout.  Can you talk about what’s going on in these markets?”

Gold Shorts Under Enormous Pressure
Alasdair Macleod: 
“If you look at gold, there is just nothing around (no gold for sale).  And the bullion banks, in the form of swaps, are short up to their necks.  I don’t know what the figure is going to reveal when we see the latest Commitment of Traders figures, but I think it is reasonable to assume that the monetary value of those bullion bank shorts is the greatest on record.

Now this is extremely uncomfortable because banks as a whole are in great difficulties, and they would want to be reducing their exposure to things like foreign exchange crosses, derivatives, gold and silver trading books, and so on and so forth.  So the dealers are under enormous pressure to try and close those shorts.  But there are no sellers, there are no sellers to them…

Billionaire Eric Sprott just bought a 20% stake in this silver company
to find out which one
click here or on the image below

Everybody Is Waiting To See The Answer To This Question
If you look at the managed money category, they are long but they are not over-long.  And furthermore, we are coming up to the expiry of the current contract.  So the question is, how many of the existing contract holders are going to stand for delivery?  That’s another question that I think everybody is waiting to see what the answer is.

The Real Reason Silver Is Up Over 6%
And if I turn to silver, the situation there is very different.  The swaps are not hugely short there, they are moderately short.  But what they are trying to do is they are trying to keep an even keel.  So when the buyers come in, they just mark up the prices because they don’t want to go short to them.  And that is why today’s silver is up roughly 6%.” 
Just Released: Gold To Test $1,921 All-Time High, Silver Surges Over $21, And Mining Stocks – You Haven’t Seen Anything Yet CLICK HERE.

***To listen to Dr. Stephen Leeb discuss the gold and silver markets finally breaking the chains of manipulation and surging toward the coming mania as well as why the Chinese will be propelling prices higher click here or on the image below.

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