What’s Driving The Price Of Gold and Silver?

What’s Driving The Price Of Gold and Silver? by Dave Kranzler for Investment Research Dynamics

Fear, Greed and Reality. Also Bill Murphy’s “Commercial Signal Failure,” which occurs when physical demand for deliverable gold and silver overwhelms the paper derivative short positions used by the western Central Banks to manage the price of gold and silver.

The naked short position in paper gold and silver is so big that any government or central bank with a substantial FX surplus could pull the plug on it by trading enough Treasuries, or even euros or yen, for real metal. Russia and China, among several other eastern hemisphere Central Banks are doing just that.

Silver Doctor’s James Anderson invited me to discuss the factors behind what appears to be a major move higher in the precious metals, possibly leading to the eventual geopolitical and financial systemic reset:

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Dave Kranzler

I spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, I traded junk bonds for Bankers Trust. I have an MBA from the University of Chicago, with a concentration in accounting and finance. My goal is to help people understand and analyze what is really going on in our financial system and economy. You can follow my work and contact me via my website Investment Research Dynamics. Occasionally, I publish on Seeking Alpha too. As a co-founder and principal of Golden Returns Capital, LLC Mr. Kranzler co-manages the Precious Metals Opportunity Fund, a metals and mining stock investment fund.