Gold, Silver, Massive Leverage & Super Wealthy Panicking

"...For the exchanges, their incentive is to create more and more bets as “the house” receives a piece of each transaction.  We have seen estimates of as much as 100-to-1 leverage by exchanges in relation to how much metal is in the vault versus the amount of bets outstanding.  Combine that form of leverage with the leverage used by the buyers and sellers of the contracts, and it is no accident that people believe the paper metal exchanges are on the way out.

How low can the paper prices of gold and silver go?  We should see shortly as Andrew Maguire has predicted.  As difficult as it is to watch the death throes of these leveraged exchanges, it is likely the last days of paper metals.

 

For investors, next week could be another wild ride.  Stay focused on value.  We do not believe that all stocks are overvalued, but one has to be very selective.  We remain convinced of the long-term value of energy, precious metals and key components of our increasingly strained food producing capacity.  Prime farmland and residential real estate has been surging, but the prices do not represent value in the short-to-intermediate term.  Art has also been in vogue, but the prices reflect near desperation by the super wealthy to unload paper currencies.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/19_Gold,_Silver,_Massive_Leverage_%26_Super_Wealthy_Panicking.html