Here is what Barron had
to say: “This is what I have heard firsthand regarding the
silver shortage. I spoke to a dealer where I purchase gold and silver in the
United States. He just told me that immediately after the Presidential
Inauguration his firm immediately began selling the hell out of monster boxes of
US silver eagles.”
Keith Barron
continues:
“This dealer informed me that business is absolutely
crazy right now and he can't keep product on the shelf because it's flying out
the door. I would also like to mention two items which are very important that
the KWN readers should be aware of.
The first one is regarding an investment group….
“This is actually a hedge fund named Pacific Group,
which is converting 1/3 of its hedge fund assets into physical gold. They have
already taken delivery of $35 million worth of gold bars. The head of the fund
was quoted by Bloomberg as saying, “In our judgment we are in the early stages
of what would likely be the world's largest short squeeze in any
instrument.”
This goes back to what we were talking about the last
time I was interviewed
on KWN regarding gold repatriation back to Germany. Basically what these
guys are saying is if everyone goes to claim their gold at the same time, the
world will witness an incredible short-squeeze.
I believe the world will see that short squeeze in
gold. The Germans have given the U.S. 7 years for a small portion of their
gold, which is supposedly stored at the Fed, to be repatriated. But I'm sure
that if it starts to look difficult to get it back the Germans will accelerate
the process. This will simply add fuel to the massive squeeze which lies in
front of us. This will literally cause a feeding frenzy as the gold market
explodes higher.
The second thing I want to make KWN readers aware of
is the report which was commissioned by the World Gold Council. This is an
incredible document, especially coming from the World Gold Council because it's
basically saying that the Chinese are going to back their currency with gold.
This would, in turn, displace the US dollar and make the Chinese yuan the
world's reserve currency.
The Chinese are sitting on piles of dollars right
now, and while the US continues its decline, the reality is that all of the fiat
currencies are in a race to the bottom. We just saw the Bank of Japan yesterday
talk about opening up QE and printing vast sums of money. This will be an
attempt to reverse their deflation with inflation. This move by the Japanese is
very, very bullish for gold.
But between what is happening with the set up for the
coming short squeeze in gold, coupled with the Chinese moving to back the yuan
with gold, and the shortages we are seeing in the silver market, the outlook for
gold and silver going forward are spectacular. Quite frankly, the gold and
silver bulls are going to begin to trample the bears at some point in the near
future.”
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