Massive Sovereign Bid In The Gold Market At This Price Level

"Today one of the savviest and most well-connected hedge fund managers in the world spoke with King World News about the exact price level where a large sovereign buyer has a massive order for physical gold.  He also updated KWN readers on the state of physical demand around the world for gold, as well as the extreme leverage being employed in the gold market.  Outspoken Hong Kong hedge fund manager William Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, had this to say in his powerful interview.

 

Kaye:  “It’s apparent to me that the orchestration against gold is not over.  The paper gold market is the dog wagging the tail of the real gold market, the physical gold market, which is still incredibly robust.  In my area of the world, Chinese demand, Indian demand, and so forth, is very strong. 

So, your listeners (and readers) need to be clear that we have none of the characteristics of a bear market (in gold).  Gold is still very much in a bull market, but that’s physical gold.  The claims on paper gold exceed physical gold by roughly 93 to 1....

 

“Those aren’t my numbers, those are the Reserve Bank of India’s calculations, and they are the ultimate insider.  So at 93 to 1 you (as manipulators) have a chance to use that leverage, until you can’t, to try to dictate prices. 

And prices are now being dictated in terms that are very favorable to people looking to buy gold, which certainly is the Chinese, the Reserve Bank of India, the central bank of Russia, and so forth.  We also continue to buy gold.  We consider this to be very attractive levels, so we continue to buy.”

Eric King:  “Bill, there is a big buyer just below the market here isn’t there?”

Kaye:  “At the moment, yes.  Right around the $1,305 to $1,310 level there is a huge sovereign buyer.  I suspect it’s China ... They are clearly running out of gold.  This is clear from the continued backwardation of gold, and the continued negative GOFO rates, which is basically the same thing.

It’s very obvious to me that the parties which are orchestrating this manipulation are running out of physical metal necessary to orchestrate the manipulation ... If we can just get it (this downside move) over with in the next couple of weeks that would be fantastic. 

Then gold would migrate much higher and we would seek the equilibrium price for gold, which in my opinion is well above $2,000 an ounce, absent manipulation, and possibly $3,000 an ounce.  It’s going to be very good times for people who were able to endure the pain.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/25_Massive_Sovereign_Bid_In_The_Gold_Market_At_This_Price_Level.html