Perfect Storm Sees Gold & Silver Surge – Chavez Gold Action Leads To Backwardation, Short Squeeze And ‘Havoc’ Concerns

Long-time readers of this blog know the concepts of backwardation, contango, a short squeeze, physical delivery vs. cash settlement, paper futures contracts vs. physical bullion, and the ramifications of a default at the COMEX (and at the LBMA).  For those late to the game, listen up.

And don't listen to the foolish Dennis Gartman, despite his huge following from CNBC.  He's been trying to trade in and out of this decade-long gold bull market for the last few years, frequently calling a wrong-headed "top".  His followers would have made more money if they just bought gold and sat on their holdings.

http://www.zerohedge.com/news/perfect-storm-sees-gold-silver-surge-%E2%80%93-chavez-gold-action-leads-backwardation-short-squeeze-and