kingworldnews.com / January 30, 2013
With gold on the move and silver surging above $32, the Godfather of newsletter writers, Richard Russell, covered stocks and informed his subscribers that silver looks very interesting to him because of the massive short position. Here is what Russell had to say: “As of yesterday, the Dow has been up 12 out of 14 sessions. The market is either close to exhaustion or the short sellers are near panic. The shorts must be thinking at this point that this market is never going to go down. With that brand of thinking, the shorts must be near panic.”
Richard Russell continues:
“Their reaction — they call their broker and shout, ‘I can’t take it anymore. Buy my shorts — I don’t care what the price is — I’ve had it, and I want out. If I ever hear the word “short” again, I’ll shoot somebody!’”
Russell also covered silver: “Silver is beginning to look interesting to me. About a month ago, I showed charts of silver mining stocks that had exploded. This suggested to me that something bullish was coming up in silver. Since 2003 silver has gained 1,012%, and in doing so it has outpaced gold.
At present the overgrown supply of silver is dangerously low. This sets us up, say silver experts, for a huge squeeze on the silver shorts. On the Comex there is currently a giant silver position, a position that almost dwarfs the available supply of free silver.
The chart below looks interesting. Silver reversed a declining trendline and then silver dropped to test its 200-day MA, where it held.