Man Who Predicted Gold Takedown Tells Investors What’s Next

"...We are estimating that 2,200 tons will be mined this year.  That figure is well below last year’s total mine output.  Based on current numbers, China alone will speak for over 50% of global mine production.  This creates a problem because India also has a robust demand.  Russia does as well, and so do the other emerging markets.

So Western central planners will run into a problem at some stage.  I don’t know how much of the 1,300 tons of gold that mysteriously left the Bank of England is being used to further prosecute this raid on gold, but I would imagine they are getting low in terms of physical at this point.  It’s just not clear to me where else they can go to source physical gold.

All of the anecdotal evidence says that the Fed is virtually out of gold that can be used to suppress the price.  The fact that we have had two major European bullion banks default also suggests that the ECB does not have gold which is in the form of ‘good delivery bars’ that can be easily made available.

So I think we are very close to the end game, but as I predicted the last time we spoke, Eric, I said in my audio interview that there was a very strong chance these people would force gold lower into a retest of the previous lows.  At that point I strongly believe we will have seen the lows, and I think their ability to prosecute the raids will be highly constrained.

When you combine this with extremely robust and sustained demand from China, India and other places, it will soon halt this effort to push the phony paper price lower.  At that point investors will need to go to full allocations in physical metal."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/10/2_Man_Who_Predicted_Gold_Takedown_Tells_Investors_Whats_Next.html