Thursday, April 24, 2014

West Hemorrhaging Gold But Here’s Its True Achilles’ Heel

"Today one of the most highly respected fund managers in Singapore warned King World News that the West is continuing to hemorrhage gold, but also cautioned that was not the West’s true Achilles’ heel.  Grant Williams, who is portfolio manager of the Vulpes Precious Metals Fund, described the great danger for the West, and also discussed the massive demand coming out of the East from countries such as Russia and China.

Eric King:  “The Chinese and the Russians understand what the end game is for Western central planners, which is why they have been buyers of physical gold, and in the case of the Chinese, prolific buyers.  Do you get the feeling that the people in Asia, who have also been large buyers of physical gold, understand where this is headed as well because they’ve seen so many paper currencies in various countries come and go?”

Williams:  “It certainly gives the people in the East a much better foundation in terms of understanding how this is likely to play out vs. people in the West.  You’ve had two generations in the West now who have had nothing but, at least notionally and optically, an increasing standard of living...."


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