$NWGC-Greece/China/crash=$GOLD=stellar-price-increases!!!!!!!!!!
Huge short-covering rally for gold and silver as Greece and China crash
Posted Sunday, 28 June 2015
By Peter Cooper/GoldSeek.com
Gold and silver will see a huge short covering rally on Monday that will lift prices out of their recent trading range and set the precious metals up for stellar price increases in the coming weeks and months.
Short positions on the Comex futures exchange are presently at record levels (click here). This is often the case at key reversal moments. If the gold price moves against these contracts then they are automatically forced to cover and buy gold, amplifying the movement of the price to the upside.
Black Monday
This is about to happen on Monday for two reasons: First, the Greek debt crisis has finally gotten out of control. There was not a last minute deal, instead the government has called a referendum on July 5th and asked for its debts to be forgiven until that vote.
Nobody expected this and there is a run on ATMs in Athens right now. The IMF will probably now declare a default on Tuesday as it will not be repaid. We don’t know what the referendum will ask. We don’t know how the Greek banks will reopen on Monday.
It’s a mess and now looks like a slippery slope into Greek defaulting on its 348 billion euro debt and leaving the euro. Financial markets have been expecting a solution, not this nightmare scenario. Gold will rise as a safe haven as the euro falls in value.
But secondly there is now an ongoing stock market crash in China. Money is hemorrhaging out of Shanghai, Shenzen and other bourses. Where will this money go?
China crisis
Given the limited options for Chinese investors, gold is the obvious choice, especially as it starts to rise in value. This is a huge new source of money set to pour into precious metals.
However, it is the extreme nature of the wrongly-placed short betting that is the reason to expect a particularly dramatic surge in gold and silver prices as Adam Hamilton at Zeal Intelligence pointed out last week, although he did not then know what Greece had installed for the markets or about the Chinese stoke market crash.
These are not one but two extreme catalysts to hit financial markets at the same time. Monday is going to be quite a moment, and precious metals and the US dollar will be the only winners in the carnage.
