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Continued Turmoil – Lawrence Roulston

July 22, 2013

This is the latest article from Lawrence Roulston. He gives his opinion on where the current market stands and what it will take to turn it around for the juniors.

Click here to read Lawrence’s article.

Discussion
5 Comments
    CFS
    Jul 22, 2013 22:42 PM

    What happened today was clearly a short squeeze. There were some signs of its starting in Asia and then being driven by panic once the US market opened.
    There are plenty of buyers at current price levels, but little supply.
    The total available supply is unknown, but there have been increasing signs it is getting VERY LOW.
    The COMEX dealer gold inventory stands at: 29.56 tonnes (Less than 1 Million oz)
    We are coming up for August as a delivery month and for comparison 31 tonnes were bought in June. You can bet there is scrambling going on to source more physical, but as physical supply diminishes the percentage of paper gold to total gold increases. Meanwhile individuals are taking physical delivery out of bullion bamk depositories, so that their physical gold cannot disappear to be replaced by a paper IOU. (For example over 103 million ozs were removed by acustomer at HSBC)
    We are less than 2 weeks away from August delivery notices…..It could be the start of delivery default on the Comex (Probably not, because they can scramble for a month or two.). I see little chance of driving gold down anymore though, since any attempt would almost guarantee default.
    I would warn people holding GLD, that there will probably come a time when you will be holding paper and be paid off in FDRs. (Same goes for SLV)
    I predict upwards drifting of gold until COMEX default and a rate of $100 per week is quite possible. Expect lots of talk being generated saying gold will go down, is a useless relic etc. But watch premiums as a clue as to what is actually happening.

    CFS
    Jul 22, 2013 22:52 PM

    While I believe Jim Sinclair is sincere $50K for gold is too high for anytime in my lifetime. However, I do believe folks will be pleasantly surprised in the next few months. (But only if they hold physical)

      Jul 22, 2013 22:20 PM

      Being accurate and selling subscriptions are two entirely different things.

    CFS
    Jul 22, 2013 22:00 PM

    Sheesh! I just did my daily check of premiums and wholesale supplies.

    Premiums are up and almost no Comex deliverable bars left in Gold or silver.
    An amazing change for one day!