The Massive Plunge In Gold & Silver Markets

Today MEP Nigel Farage, who traded gold for 20 years on the LBMA, spoke with King World News at length about the incredible smash in the gold and silver markets and what to expect going forward. He also discussed future government theft of assets, what type of chaos to expect in Europe and around the world in the future and much more. Below is what Farage had to say in part I of a series of powerful interviews that will be released today.

Eric King: “Nigel, we’re getting smashed on gold and silver. Silver is down $1.50, gold down over $60. What are your thoughts as you see this kind of a smash?”

Farage: “Yes, well they are big moves aren’t they? I guess movements like this are going to shake out not just some of the short-term longs, but it may shake out some of the medium-term longs as well.

That is something which gives the bigger, longer-term players very good buying opportunities….

“One thing is certain, whatever has happened to gold and the stock markets over the last 3 to 4 months, the fundamentals haven’t changed a bit.

We’re still living beyond our means (in the West). We’re still printing money like crazy. Bernanke says, ‘Oh, well we may sort of reduce the amount of quantitative easing that we are doing,’ but overall, all of the longer-term fundamentals point to the fact that our governments are in terrible trouble with their finances, that our banks have further shocks to come, and that we’ve got inflation coming down the road. Nobody can quite tell you when it’s going to be, but for all of those reasons I still maintain the position that dips in gold are there to be bought.

I also happen to think that the whole commodities complex, you know we’ve had this amazing rally over the course of the last decade. Were seeing retrenchment, but when we talk a few years from now, we are going to see gold and other commodity prices, particularly metals, very much higher than they are today.”


Former White House Official Discusses Gold Manipulation

Today King World News interviewed the former Special Assistant to the President of the United States for Economic Policy and former member of the U.S. President’s Working Group on Financial Markets.  While in the White House, Dr. Philippa “Pippa” Malmgren served as financial market advisor in the White House and functioned as the liaison between the White House and the Federal Reserve.

Dr. Malmgren formerly headed the Global Asset Management business for Bankers Trust in Asia, out of Hong Kong, and was also Chief Currency Strategist for Bankers Trust Company, and former Head of Global Investment Strategy at UBS.  Dr. Malmgren was also a senior consultant to Deutsche Bank, and currently advises the largest sovereign wealth funds, hedge funds, and pension funds in the world. 

Eric King:  “What caused or who caused the crash in gold?”

Dr. Malmgren:  “It is true that governments hate it when gold starts going through the roof, especially when they are in the midst of the largest devaluation, currency debasement strategy ever known….

“We have never seen so many large industrialized economies all adopt this strategy simultaneously.  So naturally that does make governments nervous.

And I’m not sure it’s such a surprise that some of the biggest banks were heavily short (gold) and putting out notes to the marketplace saying, ‘This (gold) definitely should go down.’  Then there were some very, very large transactions, historically large transactions that happened within about half an hour on that Friday morning.”

Eric King:  “When you say ‘large transactions,’ we reported that day the massive 500 ton paper (gold sale) transaction that went through the market in a very short period of time, I think it was about 15 minutes.  Nobody sells that way that has any brains.  So the manipulation is obvious there, isn’t it?”

Dr. Malmgren:  “I can see the point.  It’s interesting that everybody has been screaming for an official investigation into this and it looks like that’s not going anywhere.  So the bottom line is we will never know.”


How Investors Can Make A Fortune In These Markets

Today one of the wealthiest people in the financial world spoke with King World News about what he described as the most extraordinary contrarian indicator he has ever seen in his life.  Rick Rule, who is business partners with billionaire Eric Sprott and the CEO of Sprott USA, also shares with KWN readers how they can make fortunes going forward in these turbulent markets.  Below is what Rule had to say in this tremendous interview.

Rule:  “I listen to Bernanke and people of his ilk mostly for amusement.  I’m not trying to suggest that what they say isn’t important, but the idea that Bernanke has managed to convince markets, investors, and intermediaries, that liquidity or cash in the system is a substitute for solvency is a very interesting achievement.

But the reality is that fortunes are made by betting against widely held premises such as the one I just mentioned, and that’s what I am doing with my own money.”

Eric King:  “Rick, you have seen the chart from the Richard Russell KWN piece which showed the number of bulls in the Gold Miners Bullish Percent Index which stands at a remarkable 0%.”

Rule:  “I think that’s hilarious.  I have never in my life seen a sentiment index like that….

And if the number of people polled that were bearish or neutral on gold mining shares was 100% of the subset, that would suggest, at least in terms of the audience they polled, that the selling has already taken place.  In other words people always talk their book.  If you felt bearish about gold and gold mining shares, why on Earth would you hold gold or gold mining shares?

So it’s interesting to note that if the sentiment is 100% bearish or neutral, that would suggest that virtually all of the potential liquidation has occurred.  That’s a very interesting indicator to me.”