A short squeeze is inevitable I believe, and this is a good time to expect one to happen. There seems to be an unusually large focus at present on the precious metal seasonals - summer is normally a weak period for the precious metals. It doesn't always happen that way of course (like in 1982). So a short squeeze could catch a lot of normal longs off-guard if they are waiting to buy the dip that never comes.I have expressed to colleagues for a while now that I thought there was chance that gold/silver might, contrary to the typical seasonal pattern, stage a surprise move higher in June/July. Sensing that the physical demand in the market is starting to overwhelm the paper selling (just ask Russia), I have been thinking that the market would be set up to take advantage of a price correction that doesn't happen and scramble to re-establish long positions. We'll see how the next 6 weeks play out, but I always feel good about my views when they correlate independently with Mr. Turk's.
Finally, a commentor sent me this article from Canada's Globe and Mail about California being on the verge of systemic failure/total insolvency: California On The Financial Precipice. Interesting that Canada is reporting the kind of truth that gets buried by the U.S. media. The fact of the matter is that what is occurring in Greece, Spain et al is a mere prelude to the kind of financial tsunami that will hit the United States. Perhaps this is why Russia and China are hastening their Central Bank diversification into gold...et tu Brute?