Forget Stocks, The Gold Short Squeeze Is Intensifying

Gold last traded at $1,719 an ounce. Silver at $17.77 an ounce.

NEWS SUMMARY: Precious metal prices traded sharply higher Tuesday on safe haven buying and a weaker dollar. U.S. stocks fell as investors took some money off the table amid a recession caused by the coronavirus pandemic.

SEEKING ALPHA---"Is what's happening now in equities the mirror universe of the dotcom bubble of 20 years? It looks that way to Jim Bianco, head of Bianco Research, interviewed by Jim Grant of Grant's Interest Rate Observer last week....20 years ago, retail investors were indeed chasing upside momentum in tech stocks. Now, they are chasing momentum to the downside....After all, if you're a bank and you have all this new money from the Federal Reserve, where are you going to put it? In the real economy now rioting and destroying small businesses? Or back directly into financial assets being supported by the Federal Reserve? So, yes, the S&P 500 and Nasdaq are rallying because there's nowhere else for the new money to go right now. Even so, I'm not keen on playing the indexes here as I have done in the past. I'd rather buy the recent weakness in gold....The gold bull market since 2015 is only just getting started, and that is the way to go considering the wild uncertainties in the world today....The bullion banks are now being squeezed by speculators demanding delivery, and miners withholding supply."