"the beginning of the end for the gold shorts", page-5

"In my opinion, gold and silver are still below 1980 inflation adjusted highs and miners (GDX) are trading at record low valuations. Precious metals bubble talk is gibberish.

One should not even discuss irrational exuberance when the miners are in the midst of a hysterical fear which has dropped junior mining valuations (GDXJ) to all-time lows.

The real bubble is in U.S. debt which has risen more than 17 times 1980 highs, but still many refuse to recognize the real bubble and the possible ramifications of the bond bubble bursting. Bonds have been in a thirty year uptrend and are being manipulated ridiculously higher...

Incidentally, these shakeouts can lead to breakouts as a major rotation occurs near the bottom and long term value investors acquire at a discount. Notice the increase in physical demand and thin inventories for gold and silver worldwide.

Market makers or shorts in precious metals and mining stocks are squashing every breakout and in fact using technical analysis as a contrary signal to shakeout momentum traders over the past two years. I have learned that these players use the charts to go against the market...

I believe the gold bull market will recover from this short attack and continue with a breakout into new highs past $1900 sooner rather than later. This may be an accelerated move sooner rather than later after many of the weak hands have been shaken out. When gold and silver breakout, watch the small junior miners priced at Armageddon 2008 prices soar. Some of these discounted junior mining stocks could see exceptional gains from these low decade low levels..."

The full read of "Short Covering Squeeze In Precious Metals and Miners?" is at http://www.safehaven.com/article/29599/short-covering-squeeze-in-precious-metals-and-miners