James Turk – Is A Major Gold & Silver Short Squeeze About To Unfold On This Stunning Announcement?

With the Dow tumbling as the price of crude oil breaks above $72, today James Turk told King World News that a major short squeeze in the gold and silver markets may unfold on this stunning announcement.

Summer Doldrums Are Over
September 24
 (King World News)
James Turk: 
The summer doldrums in the precious metals are over, Eric. Markets are heating up, and increased volatility across the board is likely as we move toward the end of the week…


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First, Comex options expire tomorrow. October is not normally a big delivery month, so it should be relatively easy for the central planners and their friends in the big banks to control precious metal prices leading up to expiry like they have done so many times in the past. 

Metals Short Squeeze?
Yet we saw good buying in the precious metals today, which resulted in noticeable upside pressure that moved the metals higher after their soft start in the morning in Europe. They moved back toward the top of their trading range, particularly silver. That raises some interesting questions. 
Are the bullion banks about to be overpowered by the buying coming into the precious metals? Or is it that the bullion banks are now on the long side and the hedge funds short, as some have speculated? If so, are the hedge funds about to be blindsided by a short squeeze in the precious metals?

There are more questions than answers at the moment, Eric, but look at what is happening to oil. It gives us a hint as to why the precious metals are turning higher. WTI is just a chip-shot away from its recent high of $74, which was a 4-year high. And over here in Europe, Brent crude is flirting with $80 a barrel, which is also right at a 4-year high. Rising crude oil prices provide solid evidence that inflation is creeping higher.

All of this is important, but the big news hits the wire on Wednesday afternoon. That’s when I expect the real volatility to start. The Federal Reserve on Wednesday is widely expected to announce another interest rate increase, but I have my doubts. Despite its claim to be independent, the Fed is fanatically political. For that reason, it does not raise interest rates too close to an election. 

So is the Fed ready to risk the President’s ire by raising interest rates with the mid-term election looming? Maybe the answer lies in this chart of the Dollar Index.

US Dollar Weakening, Despite Interest Rate Increases

That is one ugly looking chart. Higher interest rates would mean a strong dollar, not the weak-looking one pictured in this chart. Not only is the dollar forming a huge top, its short-term moving average is rolling over, making it look like the dollar is going to fall off the edge of the table if support at current levels breaks. So maybe what this chart is telling us is that the Fed won’t be raising interest rates on Wednesday. Maybe the underlying buying pressure in the precious metals is also telling us the same thing. Regardless, any plan by the Fed to stop or even just delay any interest rate increases they have already telegraphed to the market will be very bullish for gold and silver.

Big News To Create Metals Spike?
So here are the big questions at the moment, Eric: Is this slow boil developing in the precious metals just a head-fake? Or are we at the beginning of a big upward jump in precious metal prices? 
Let’s see what happens on Wednesday, but this dollar chart and others are giving us the footprints of clairvoyant insiders. It looks like they have already been preparing for a few weeks that the Fed will not raise interest rates. That would be big news because it is contrary to what is expected, and big surprises like this cause volatility. 

A Long Awaited Breakout
Here is what to watch: For several weeks now gold has been in a trading range of roughly $1,185 to $1,215. So gold needs to break out of that range. Let’s see if it prints $1,220, which could be the first step of a long awaited breakout.

Also of importance…

Big News
CEO, John Awde:  “Eric, these results from Dark Star this morning are a bit of a game changer for Gold Standard. We’ve opened up this deposit to the North, West, and at depth, highlighted by today’s intercept of 190 meters of 2.28 grams per tonne oxide, 230 grams of 1.87 grams per tonne oxide, and 240 meters of 1.7 grams per tonne oxide.  This took place 100 meters below where we previously had the model for the mineralization.  And below the oxide we are getting into sulfide.  
The bottom line is that there’s a lot more to Dark Star than we first knew about or anticipated and this has opened up a huge opportunity for us in terms of this deposit.  

Last Thursday we announced the expansion of our exploration program, highlighted by an extra $2 million for Dark Star that will see 35 new holes get drilled.  So we are extremely excited about that.  We’ve introduced three new targets that we are going to be drilling in the southern area of our project that are in the same host as the Dark Star shallow outcropping oxide.  So we are certainly looking to finish the year strong.  Gold Standard Ventures symbol GSV in the US and Canada. To view today’s news release CLICK HERE or you can call the company directly at (604)669-5702.

***KWN has released the powerful KWN audio interview with Bill Fleckenstein discussing Friday’s gold smash and much more CLICK HERE OR ON THE IMAGE BELOW.

ALSO JUST RELEASED: Last Time This Happened Gold Price Spiked 24% In One Year! Plus Final Week Of Excess Global Liquidity CLICK HERE TO READ.

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