Default Fears Escalate As Run On Physical Gold Intensifies

"Today one of the most highly respected individuals in the financial world warned King World News that the run on physical gold is intensifying, and now poses a danger to the entire system.  Grant Williams, who spoke to KWN from Singapore, also warned that if the run on physical gold continues to intensify, the entire fractional reserve gold system will be put under enormous pressure that may cause it to finally buckle.  Below is what Williams had to say in part I of this extraordinarily powerful interview series that will be released today.

 

Williams:  “What’s happening at the moment is going to be very, very interesting.  We are about to witness the second act of this move in gold that started in April.  The beginning of this saw this precipitous fall in the futures price, against the backdrop of voracious (physical) buying of the metal (gold) itself.

 

I have been saying that we are really only going to understand the structural changes that have been made to the market once we see the price of gold going up.  And we have (now) started to see that.  In the last few days we’ve seen about a 4% rally in the price of gold, and the miners in the form of the GDX were up 17%.

 

And there has been an awful lot of (physical) gold that has been taken out of supply...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/14_Default_Fears_Escalate_As_Run_On_Physical_Gold_Intensifies.html