Any Questions as we wait for the Debt Limit to be raised? (updated)

(click on image to enlarge)

 

Above is the reason for the bullish view on Gold. Meanwhile Citigroup Global Markets Inc. have said that if silver follows similar patterns as seen in silver’s last bull market from 1971 to 1980 than silver could double to over $100 per ounce.

From the Citigroup report:

• “If the final rally in the last bull market repeated then we can expect $100 over the long term. While the high so far this year was at the same level as the peak in January 1980, we are not convinced that the long-term trend is over yet.”

Most institutional players and Wall Street banks have been bearish on silver and have called the silver market wrong for years. Many analysts believe this is because these insitutional players and banks have very large concentrated short positions and were likely 'talking their book.'

Because of that it is very unusual to see such a bullish call from a major bank. It suggests that at least some of the major banks see the writing on the wall regarding much higher silver prices. They are likely positioning themselves accordingly.

This means that the banks with concentrated short positions, such as JP Morgan, may soon see their silver positions incur even greater losses and we may see the much heralded short squeeze propel silver to much higher prices.

It's important to note that the real inflation adjusted high from 1980 is $140/oz and many believe we will see this very shortly.

==================

Email: village_whisperer@live.ca
Click 'comments' below to contribute to this post.

Please read disclaimer at bottom of blog.