Sept. 15th (Seeking Alpha)

A series of new and significant events have unfolded over the past few weeks that have influenced the precious metals markets and will likely continue to support gold’s price advance.

China Encouraging Citizens to Buy Gold and Repatriating Gold Holdings from London …if China’s newly formed middle class begins using even a small portion of their disposable incomes to purchase precious metals, a whole new source of demand will exert its influence on the gold markets.

The World’s Largest Gold Producer, Barrick Gold Corp, Announced a Decision to Close Its Massive Hedge Book …Barrick’s decision to close its 9.5 million ounce hedge book just as gold has taken out the $1,000 level speaks volumes. Instead of waiting for a correction and lower pricing, they are eager to gain full exposure to the gold price.

COMEX Commercial Traders Have Taken the Largest Net Short Position Against Gold & Silver Ever on Record …if commercial shorts went so far as to establish a record net short position and still did not meet the increase in open interest, this suggests there is some very intense buying pressure on the other end.

Gold and Silver Slipped into Backwardation Last Week …suggests that there is more demand for immediate physical delivery than there is metal to service it.

Any way that you look at it, we are entering intense times in the financial markets and a reality check for the monetary system that has brought great advantage to the United States since establishing the dollar as the world’s reserve currency. Reducing your exposure to the dollar and protecting your assets with a sensible allocation of gold and silver seems like an obvious move at this juncture.