Silver and gold: Record shorts are being covered.

The last time I wrote about silver and gold I quoted the successor to Larry Edelson that gold should bottom in the middle of July and begin to rally. That forecast was correct.

This time I am citing the covering of shorts by the commercials. These are the people in the know:

http://kingworldnews.com/fascinating-email-from-a-kwn-reader-about-the-gold-market/

Note that there was not merely a record short position in silver, but the covering is the steepest ever. The covering of the shorts is usually accompanied by a rise in prices. Gold is similar, but changes are less volatile (the slope of covering is less steep). Silver is an industrial metal as well as a monetary metal.