Celente - $17 Trillion & The Two World’s of Gold & Silver

"Today top trends forecaster Gerald Celente spoke with King World News at length about what is taking place in gold and silver markets.  Gerald Celente is the founder of Trends Research, and the man many consider to be the top trends forecaster in the world.  Below is a portion of what Celente had to say in his interview.

 

Celente:  “I’m in the camp of everyone else out there that really follows this, that the paper trading and (with) the naked shorts is one way of buying gold and trading gold, but that’s not the real market.  That’s the manipulated market.

 

On the hard asset market, taking physical delivery of gold, it’s still very strong around the world.  So there are the two worlds....

“There is the world that’s manipulating gold and the world that is buying gold.  And in the world that’s manipulating gold all we have to do is look at the beginning of the week when Fed Chairman Bernanke came out and talked about whether or not they were going to keep interest rates low, or (have) more quantitative easing, and  (then) we saw the reaction on the Street (Wall Street).

 

Following that gold spiked and then of course pulled back a bit, but for no reason at all because as you are looking at the real market conditions, there is no (economic) recovery, period.  What have they dumped in, Eric?  Some $17 trillion since the panic of 2008 hit, between quantitative easing and pumping money into the system.

 

Look at the numbers coming out, the recovery is tepid at best and now you have a slowdown in China.  You still have a slowdown in Europe.  It’s only getting worse over there.  Interest rates are at record lows and gold should be at record highs.

 

But it’s not in the interest of the central bankers around the world to have high gold prices because if gold prices were high, then people would realize that they don’t have any value in buying paper garbage.  And that’s all this is.  They (central planners) are driving down gold prices to keep their paper garbage at a salable price so that people still believe in the failing system.”  

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/25_Celente_-_$17_Trillion_%26_The_Two_Worlds_of_Gold_%26_Silver.html

 

Jim Grant Says Monetary System Won’t Last & Gold Bullish

"Today legendary Jim Grant told King World News that the current monetary system will not last and therefore it’s way too soon to pronounce the gold bull market is over.  Grant also discussed the enormous and tragic price tag of irresponsible central bank policy.  Below is the second in a series of three written interviews with one of the most highly acclaimed individuals on Wall Street which will be released today. 

 

Eric King:  “Jim, the ‘sins of the Fed’ that you referred to in one of your interviews, they are old sins.  There’s nothing new under the sun, right?  Except maybe derivatives.  But with regards to the sins of the Fed, what price tag will we have to pay at some point?  You mentioned a ‘comeuppance’ earlier.” 

Grant:  “The comeuppance has already been substantial.  I mean how do you quantify the cost of lost opportunity for six college graduation seasons, more or less, in which young people have been thwarted in what they want to do for a living?  And many of them have been kind of tossed into the casual work scrap heap.  What’s the cost of that?

 

Now the Fed didn’t exactly cause that, but to me it has exacerbated our problems rather than solving them...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/24_Jim_Grant_Says_Monetary_System_Wont_Last_%26_Gold_Bullish.html

 

Turk - We Are Witnessing Extraordinary Events In Gold & Silver

"With hedge fund shorts in gold and silver continuing to battle the physical market in London, today James Turk told King World News that the hedge funds will be overrun as the physical market takes down the massively overexposed paper shorts.  Turk also spoke about the wild trading which has centered around the London fix.

 

Turk: “We are seeing some extraordinary events in the gold market, Eric.  One of these was yesterday's London PM fix, which people are still talking about.  Gold was trading quietly around $1385 just before the fix.  Then, as the fix commenced, gold rose within roughly 15 minutes to $1414. 

 

It was a real rocket-shot and caught the shorts by surprise.  But the shorts regrouped, in order to regain control, and gold then dropped lower in the next 30 minutes.  After the fix ended, gold had fallen to below $1370.  We have to consider the significance of this extraordinary event...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/23_Turk_-_We_Are_Witnessing_Extraordinary_Events_In_Gold_%26_Silver.html

 

Gold, Silver & 100-Year Inflection Point To Crush The West

"On the heels of the Fed’s James Bullard saying the central bank should continue its bond buying program, today acclaimed money manager Stephen Leeb spoke with King World News about what he described as a key 100-year inflection point.  Leeb also discussed gold and silver.  Below is what Leeb had to say in his interview.

 

Leeb:  “In addition to being focused on the gyrations in the gold and silver market and whether we have now successfully tested a bottom, the bigger picture is that the world remains a mess.  Yes, eventually all of the money that is floating out there is going to lead to inflation, but there are also a great many other problems that governments around the globe will have to contend with.

Clearly Europe is not out of trouble.  Spain, as an example, is literally ruling with fear.  Their government is staying in power by virtue of fear.  The public is scared that if they drop out of the euro all hell will break loose.  That’s what the government is telling them.  I don’t think the government of Spain can keep the populace at bay using fear for much longer...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/21_Gold,_Silver_%26_100-Year_Inflection_Point_To_Crush_The_West.html

 

Clients Denied Gold At Major Banks As Shortage Intensifies

"Today Egon von Greyerz told King World News that clients are having tremendous problems getting their physical gold out of Swiss banks as well as other major banks as the shortage intensifies.  Greyerz also discussed the fact that refiners simply cannot keep up with demand, “no matter how much they produce.”  Below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this extraordinary interview. 

 

Greyerz:  “This week I want to talk about what we are seeing in the physical gold market, and why there is a disconnect in that market.  We transfer a lot of gold from Swiss banks and other banks into private vaults for investors.

More often now, than ever, we are encountering incidents when the banks are putting up all kinds of obstacles for these transfers.  The first sign of the potential shortage of physical gold started with ABN AMRO a few weeks (when they) declared that they would renege on their commitment to redeem gold accounts in physical gold...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/21_Clients_Denied_Gold_At_Major_Banks_As_Shortage_Intensifies.html

Gold, Silver, Massive Leverage & Super Wealthy Panicking

"...For the exchanges, their incentive is to create more and more bets as “the house” receives a piece of each transaction.  We have seen estimates of as much as 100-to-1 leverage by exchanges in relation to how much metal is in the vault versus the amount of bets outstanding.  Combine that form of leverage with the leverage used by the buyers and sellers of the contracts, and it is no accident that people believe the paper metal exchanges are on the way out.

How low can the paper prices of gold and silver go?  We should see shortly as Andrew Maguire has predicted.  As difficult as it is to watch the death throes of these leveraged exchanges, it is likely the last days of paper metals.

 

For investors, next week could be another wild ride.  Stay focused on value.  We do not believe that all stocks are overvalued, but one has to be very selective.  We remain convinced of the long-term value of energy, precious metals and key components of our increasingly strained food producing capacity.  Prime farmland and residential real estate has been surging, but the prices do not represent value in the short-to-intermediate term.  Art has also been in vogue, but the prices reflect near desperation by the super wealthy to unload paper currencies.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/19_Gold,_Silver,_Massive_Leverage_%26_Super_Wealthy_Panicking.html

Art Cashin - Money Supply Going Parabolic, Gold & Inflation

"Today 50-year veteran Art Cashin warned King World News that money supply is now going parabolic and may cause problems for the Fed and also create explosive inflation.  Cashin, who is Director of Floor Operations at UBS ($650 billion under management), also spoke about John Paulson and others positioned in gold.

Eric King:  “Art, you brought up the Fed and the distortion in the markets.  What about the Fed distorting the markets and is there a danger of something like the 1987 stock market crash coming out of all of this?”

 

Cashin:  “You are in uncharted territory in many ways.  This is what the ancient mapmakers would call, ‘Terra incognita, or ‘Land unknown.’  That is why you see people like John Paulson, brilliant, made more money than just about anybody in the housing collapse, and he’s long gold and handcuffed and tied in.

Many of the other hedge fund managers bought gold.  Why did they buy it?  They bought it for classical economic reasons.  They believed that if the Fed was going to print money relentlessly, hand-over-fist, it must follow, as night follows day, that you will have a burst of inflation that will shake the Earth.  They think back to the Weimar Republic.

We have not had any of that because the people are so frightened.  So money has no velocity.  Inflation lies dormant so far, and that’s why gold is having such a tough time.”

Eric King:  “Art, you’ve warned so many times and you keep watching the St Louis Fed money indicators to look for growth in the money supply.  What about that situation because when you warn so many times about things you are always right, and it’s because you’ve been doing this for half a century.  What Paulson is looking for, and others, it’s coming isn’t it? 

Cashin:  “The ingredients are set up for spontaneous combustion.  It’s not there yet.  Particularly since QE3, if you look at the St. Louis Fed and you look at the monetary base or money stock, which is the raw material for money, this is the one the Fed really has control over, and it was not moving up for months.

Well, we stopped moving sideways months ago, and it (money supply) has gone nearly parabolic.  The amount of raw material, money pumped in by the Fed and others shot up like a rocket.  Can you have explosive inflation?  Certainly you can.  When people start to lend it and spend it step back, because the Fed may not be able to put that Genie back in the bottle.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/18_Art_Cashin_-_Money_Supply_Going_Parabolic,_Gold_%26_Inflation.html

Premiums Soaring As Massive Run On Gold & Silver Continues

"Today a legend in the business told King World News there is a continued massive run on physical gold and silver as premiums in Shanghai have now soared to a stunning level (see below) for physical gold.  Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also spoke about extraordinary situations unfolding at gold, silver, and art auctions in New York and Zurich, and what this means for investors.  Below is what Barron had to say in this remarkable interview.

 

“This is very symptomatic of what’s going on.  We see a lot of manipulation taking place in the gold and silver markets, but the big money is going for portable wealth, and they are doing that in the form of buying hard assets.  They are getting it out of dollars and other paper currencies, and they are putting it into tangibles, especially portable wealth.

I’m not talking about real estate, although if you try to buy an apartment facing Central Park it will cost you a great deal of money, and the same thing is true if you want to buy a flat in Mayfair, in London.  But what is happening is high end people are looking to protect their wealth.

At this auction today I am seeing a lot of Europeans and a lot of Russians buying up these ancient coins that are for sale.  This isn’t the sort of auction that attracts Asian collectors, but I would note that Chinese coin prices are going through the roof right now. 

The highest price paid for a coin was $14 million earlier this year for a US silver dollar from 1793.  That was the first year they ever minted them.  So fine art, furniture, high end sculptures, classic cars, all of these types of collectible items are skyrocketing in price.

What you are seeing in the gold and silver markets right now is preposterous.  We’ve seen the gold market smashed below $1,400 once again, and yet the premiums in Shanghai for physical gold will cost you $50 over the spot price.  It will cost you even more if you want physical gold in Vietnam right now. 

What we are seeing is a divergence between the paper gold and the physical gold markets around the world.  If you want physical gold you are going to have to pay up for it because there is not a lot of available physical gold out there.  For what it’s worth, the shenanigans which have gone on recently were orchestrated and designed to allow a couple of major entities to cover who were short gold.

The next time there is a short situation, they are going to be forced to bid up the price because I firmly believe they simply are not going to be able to find the physical gold out there in the market, or even the physical silver.  We’ve seen massive demand for both one ounce gold and silver coins in the US to cite another example. 

So this is what’s going on in the real world, and so you have a tale of two markets:  A paper gold market, and a physical gold market where we are seeing premiums on gold coins which we haven’t seen in decades.  This is because of market demand.  So you either pay up for gold, or you wait a considerable length of time, weeks or even months, to get deliveries, especially for large amounts of gold coins or bars.”

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/16_Premiums_Soaring_As_Massive_Run_On_Gold_%26_Silver_Continues.html

Gold To Soar As West Enters A Frightening Economic Ice Age

"Despite the smash today in gold and silver, one of the most well connected hedge fund managers in the world told King World News that gold is heading thousands of dollars higher as the West enters a frightening economic “Ice Age.”  Outspoken Hong Kong hedge fund manager William Kaye also discussed how America and its middle class will emerge from the coming financial destruction.  Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, had this to say in the fourth and final segment of his written interview series with KWN.

 

Kaye: 

“This is not a good setup.  This is a setup in which gold has been suppressed, and paper instruments that people own have been artificially inflated.  So when the system collapses on itself, and it will, the inevitable result will be that gold will be reset upwards (in price) somewhere between $5,000 and $10,000...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/15_Gold_To_Soar_As_West_Enters_A_Frightening_Economic_Ice_Age.html

Marc Faber : The Fundamentals for GOLD are intact

"Marc Faber : “I love the fact that gold is breaking down because it will give a good entry point. The fundamentals for gold are intact.”

at http://marcfaberchannel.blogspot.com/2013/05/marc-faber-fundamentals-for-gold-are.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarcFaberBlog+%28Marc+Faber+Blog%29

Are We On The Verge Of Witnessing The Death Of The Paper Gold Scam?

"The legal claims on physical gold far exceed the amount of physical gold that the banks actually have by a very, very wide margin.  And right now the bankers are scared out of their wits because their warehouses are being drained of physical gold at a frightening rate.  So what happens when their physical gold is gone but they still have lots and lots of people with legal claims to gold?  When that moment arrives, it will represent the end of the paper gold scam.  Many believe that the recent takedown of the price of paper gold was a desperate attempt by the bankers to put off that day of reckoning, but it appears to have greatly backfired on them.  Instead of cooling off demand for precious metals, it has unleashed a massive "gold rush" all over the globe.  Meanwhile, word has been spreading among wealthy families in both North America and Europe that they had better grab their physical gold out of the banks while they still can.  This is creating havoc in the financial community, and at least one major international bank has already declared that it will only be settling those accounts in cash from now on.  The paper gold scam is starting to unravel, and by the time this is all over it is going to be a complete and total nightmare for global financial markets..."

at http://theeconomiccollapseblog.com/archives/are-we-on-the-verge-of-witnessing-the-death-of-the-paper-gold-scam

Michael Pento - Expect Unprecedented Economic Chaos

"Today one of the top economists in the world sent King World News an exclusive piece covering the tragic reality of what is really taking place with the US economy, and mounting debt.  Michael Pento, who heads Pento Portfolio Strategies, also covered Europe, Japan, Australia, and more in the powerful piece below. 

Bubbles Inflating Faster Than GDP 

Global central banks have clearly demonstrated the ability to re-inflate stock and real estate bubbles.  Global stock markets are roaring ahead of their economies and real estate prices are quickly rebounding from their recent collapse.  However, rock-bottom interest rates and massive money printing have yet to show an aptitude for creating sustainable GDP growth. 

There has been a lot of talk about a rebound in the equity and real estate markets helped along by the Fed’s free money.  That much is certainly the truth; but the evidence of a viable and sustainable recovery built on free-market forces just isn’t there. 

For example, the percentage of consumers who own their own home continued to fall during the first quarter of 2013, dropping to a national level that hasn't been seen since the fall of 1995.  The Census Bureau reported that the nation's home ownership rate slipped to 65% in Q1 2013, a decline from 65.4% posted in the last quarter of 2012.  The rate of home ownership now stands at a 17-year low!...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/11_Michael_Pento_-_Expect_Unprecedented_Economic_Chaos.html

Maguire - Perfect Storm In Gold As LBMA & COMEX Collapsing

"Today whistleblower Andrew Maguire told King World News the perfect storm is brewing in the gold market as the LBMA and COMEX are collapsing.  Maguire, who recently appeared in the extraordinary CBC production titled, “The Secret World of Gold,” also spoke with KWN about the disappearance of gold from both of those exchanges.  Below is what Maguire had to say in part II of his remarkable written interview series which will be released today.

Maguire:  “One thing is certain today, the bullion banks are on the long side of all of this selling.  We are seeing cracks appearing in the fractional reserve LBMA and COMEX price setting mechanisms.  It’s really thanks to the most recent paper market discount that we are evidencing this accelerated migration of bullion from the West to the East. 

The more obvious this becomes, the more it exposes these bullion banks as holding real naked shorts that are absolutely undeliverable fractional reserve bullion positions...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/10_Maguire_-_Perfect_Storm_In_Gold_As_LBMA_%26_COMEX_Collapsing.html

 

Hathaway - The Physical Gold Market Is On Fire Right Now

"With continued uncertainty in the gold and silver markets, today John Hathaway told King World News that the physical market for gold is on fire.  Hathaway also told KWN that large numbers of orders for physical gold are experiencing delays.  Hathaway, of Tocqueville Asset Management L.P., is one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating. 

 

Eric King:  “John, what are you hearing about the physical market for gold?”

Hathaway:  “Well, it’s just gangbusters.  You hear about shortages of coins.  Sometimes that can be attributable to the mints not having enough equipment.  Bars, the same thing.  I read recently that more than half of the gold which has been ordered has been on a delayed delivery of some sort.

Everything I get confirms the activity is overwhelmingly on the buy side...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/9_Hathaway_-_The_Physical_Gold_Market_Is_On_Fire_Right_Now.html

 

Embry - This Is How Close We Are To Total Collapse

"Today John Embry spoke with King World News about the recent action in gold and silver and what the central planners are doing right now in an attempt to prevent a total collapse of the financial system.  Below is what Embry, who is chief investment strategist at Sprott Asset Management, had to say in his tremendous interview:..."

at   http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/6_Embry_-_This_Is_How_Close_We_Are_To_Total_Collapse.html

The Global Run On Silver & What It Means Going Forward

"On the heels of continued volatility in gold and silver, today 40-year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News.  Fitzwilson, who is founder of The Portola Group, discusses the silver market at length and what KWN readers must know about the incredible run on silver that has been taking place around the world.

 

Below is Fitzwilson’s exclusive piece for KWN:

Fitzwilson:  “The reality of currencies is that they represent unfinished transactions.  Currency was invented to make the movement of wealth less hazardous and the storage of wealth more convenient and secure.  Transporting gold and silver in the past was cumbersome and dangerous. 

That said, it is critical to remember that currencies are not wealth, but simply a mechanism for the exchange of goods and services in the present, as well as a way to defer such exchanges to a later time such as retirement..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/6_The_Global_Run_On_Silver_%26_What_It_Means_Going_Forward.html

 

Swiss Refiners Unable To Keep Up With Massive Gold Demand

"Today Egon von Greyerz told King World News that Swiss refiners are still unable to keep up with the massive global demand for physical gold.  Greyerz stated that Swiss refiners are working 24 hours a day, 7 days a week, but simply can’t keep up with the massive orders for physical gold.  Below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this tremendous interview.

Greyerz:  “Right now I’m looking at what’s happening in the US and Bernanke has been Chairman of the Fed for seven years and he’s been the most productive man in the history of the United States.  During his reign the federal debt has gone from $7 trillion to $17 trillion.  That’s up two and a half times. 

 

But of course gold has continued to reflect the increase in debt and to reveal the destruction of paper money.  So gold is also up two and a half times during the same period, and that’s with gold at $1,470 today, which is near the low corrective level...."

 

at  http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/3_Swiss_Refiners_Unable_To_Keep_Up_With_Massive_Gold_Demand.html

Largest Wholesaler In U.S. Sold Out Of 100 Ounce Silver Bars

"Today 41-year market veteran Bill Haynes told King World News that the largest wholesaler in the United States is completely sold out of 100 ounce silver bars and is no longer willing to take orders.  Haynes also updates KWN readers globally on the stunning buying of physical gold and silver he is seeing at his firm which is the largest gold and silver dealer in the United States.  Below is what Haynes had to say in this remarkable interview..."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/4_Largest_Wholesaler_In_U.S._Sold_Out_Of_100_Ounce_Silver_Bars.html

John Hathaway - I Haven’t Seen This In Gold In 15 Years

"With continued turbulence in the gold and silver markets, today superstar John Hathaway, whose career spans more than four decades in the financial business, told King World News he has never seen anything like what we are witnessing in the gold market since starting his gold fund 15 years ago.  Here is what Hathaway, who is without question one of the most respected institutional minds in the world today regarding gold, had to say in part II of his powerful interview.

Eric King:  “John, you’ve had a career spanning over four decades in this business.  When you look back on the two periods between 2001 to 2003 and 2008 to 2009, focusing on gold and the shares are they as undervalued as you have ever seen them?”

Hathway:  “The gold stocks are very statistically cheap, particularly if you think gold prices are headed higher.  In fact they are ridiculously cheap.  I’ve never seen it like this since I started the gold fund in 1998.

 

It reminds me a lot of what happened in 2008 when I had people writing me and telling me the game was over.  We now have people coming out of the woodwork telling investors to get out of the gold space..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/3_John_Hathaway_-_I_Havent_Seen_This_In_Gold_In_15_Years.html

Richard Russell: This Is Unlike Anything We’ve Seen In History

"On the heels of continued volatility in the gold and silver markets, the Godfather of newsletter writers, Richard Russell, writes that we are living through some of the greatest and momentous changes in world history.  Russell also discusses the US dollar, inflation, the Fed, and what is happening in the gold market..."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/1_Richard_Russell__This_Is_Unlike_Anything_Weve_Seen_In_History.html

Embry - This May Create A Massive Upside Breakout In Gold

"Today John Embry asked the question, why should gold and silver investors worry?  He then told King World News about a key situation which may create a massive upside breakout in gold.  Embry also commented on the massive global physical demand for the metals.  Below is what Embry, who is chief investment strategist at Sprott Asset Management, had to say in his tremendous interview:

Embry:  “What I am focused on right now is this whole paper gold market and the fact that the gold in the banking system has been hypothecated and rehypothecated so many times that nobody knows who owns what. 

We’re seeing more and more evidence that the market is getting tighter and tighter, and I believe there will be a run on physical gold because of this.  When these various people and entities find out they don’t really own the gold they think they do, there is going to be an amazing reaction...."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/1_Embry_-_This_May_Create_A_Massive_Upside_Breakout_In_Gold.html