"At Kitco, Jon Nadler is a constant critic of gold and silvers bullish potential. In that respect perhaps he is the opposite of the goldbugs. However in this article he makes some serious remarks on China re gold and on the amount of long positions in silver, which worry me. I'm very interested in your views on them.

"Thanks very much for your continuous interesting and helpful insights."

David Fuller's view hanks for your comments and the article.

Jon Nadler clearly has a considerable amount of short-term information which may be of particular interest to fabricators and some metal dealers. It has been right to be cautious of precious metals since they lost upward momentum near previous resistance levels following the 4-week surge to the upside. I remain more interested in the big picture fundamentals and my own behavioural technical interpretations. Accordingly, I think we have seen most of the short-term correction and consolidation that is likely to occur but these remain volatile instruments if you are using leverage.