by David Schectman, MilesFranklin.com:
I recently had a conversation with a friend who works for Sprott. We were discussing the state of the precious metals market. He told me that people have asked Eric Sprott (Sprott Asset Management) why he didn’t place an order for a billion or more and stand for delivery of physical gold? The reason he doesn’t is because it is written in the contracts that they can fill the order with shares of GLD. There would NOT be a force majeure. What a racket! The leveraged paper game is so foul and rigged that the only game in town is physical metals.
Gold (and silver) is a market that moves up and down in a saw-tooth pattern and currently we are still in the down mode. 50% corrections are not uncommon (see the 1970s bull market), but we are very close to the bottom before it turns up again, and it will.