The Power Of Gold & An Economic Collapse

Today top trends forecaster Gerald Celente spoke with King World News about the power of gold and an economic collapse. Gerald Celente is the founder of Trends Research, and the man many consider to be the top trends forecaster in the world. Below is what acclaimed forecaster Celente had to say to KWN in this powerful and exclusive interview.

Celente: “That’s what he (Bernanke) said, ‘Nobody understands gold prices.’ He also called gold, I love this one, ‘An unusual asset.’ And he said that some people see gold as ‘disaster insurance.’ Yes, disaster insurance against what people like him and other central bankers are doing — creating a global disaster by printing all of this digital money….

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“When you go back and listen to Bernanke, when Ron Paul was a member of the House (of Representatives) and was questioning him and Ron Paul asked him, ‘Is gold money?’ And Bernanke said, ‘No, it’s a precious metal.’

So here’s what I have to say: You better tell the Iranians. (And you better tell) the Turks and the Chinese that are buying Iranian oil and giving Iran gold that they are really not giving them (Iran) anything of value, (that instead) it’s only ‘an unusual asset’ (laughter ensues). So they (the Iranians) are selling oil for unusual assets (laughter).

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/19_Gerald_Celente_-_The_Power_Of_Gold_%26_An_Economic_Collapse.html

Fund Managers Are Now Buying Gold With Their Own Money

With the dollar moving solidly lower and gold and silver rebounding, today acclaimed money manager Stephen Leeb told King World News that more and more fund managers are telling him they are buying physical gold with their own money, not GLD, and they are storing it themselves or in a vault outside of the banking system. Below is what Leeb had to say in this powerful interview.

Leeb: “We have the US dollar down over 1% today and gold has reacted by moving firmly above the $1,400 level. Silver is also moving higher. I think the question now is how fast are the metals going to advance? That will depend on a number of things, but one thing is certain and that is the selling is over.

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Gold is going to be the single most important currency in the world going forward. That’s the way it is headed. One of the catalysts which may ignite the gold price would be if things erupt in the Middle-East. If we move aggressively into Syria then you are talking about Russia, the US, Iran, etc….

“Who knows what would happen in that environment? Oil could become very scarce in a very short period of time. But the bottom line for investors is the only way they can protect themselves and emerge from all of the coming chaos over the next several years, and with enough capital to secure a decent way of life, is through gold.

As I continue to speak with fund managers, more and more of them are telling me they are buying physical gold, not GLD. These people are taking their own money, buying gold and literally storing it themselves or in a private vault outside of the banking system. This is with their own personal money. What does that tell you?

I have never been one to distrust government, but more and more I am getting to that point. When you look at what’s happening in this country, many things are in the interest of powerful corporations and not in the interest of the country itself.

Source: http://www.kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/6_Fund_Managers_Are_Now_Buying_Gold_With_Their_Own_Money.html

The geopolitics of gold

Western central banks have got themselves horribly wrong-footed as a result of not adjusting their anti-gold policies to allow for the realities of Asian gold demand. Though their dealings are shrouded in secrecy, there is compelling evidence that much – if not most – of Western central bank gold has been quietly sold over the last three decades.

More recently all members of the Shanghai Cooperation Organisation, a common security and trading bloc led by Russia and China and incorporating the bulk of Asia’s land mass, have been accumulating gold. Between current SCO and future members (India, Iran, Afghanistan, Mongolia, Belarus and Sri Lanka), with their citizens numbering over 3 billion people, they have together cornered the global market for physical supply, without even taking account of demand from the rest of South East Asia’s gold-hungry population.

The result is that gold markets are now failing to clear. The outcome is a choice: the West will either have to stop intervening and allow gold to find a level where physical and derivative markets interact properly with each other, or capital markets in the West will face a growing crisis likely to spill over into other markets. While these outcomes were always going to be a choice to be made at some time in the future, the disconnection between physical gold and derivatives has become so great that it is now an immediate concern.

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At the government level it is a geopolitical clash of the titans. Russia and China are almost certainly aware of the lack of gold in Western central bank vaults: they are fully capable of thorough due-diligence in this respect. They have so far been careful not to disrupt capital markets because it has not been in their interests to do so; however, the current hiatus in gold markets is almost certain to modify their view.

Fundamental to all this is their attitude to Western currencies: the yen is now collapsing, the euro area is in deep trouble and the US economy is at very best stagnating. Until now, payment for Russian energy and Chinese goods in foreign currencies has been welcomed, because it has allowed the Russian and Chinese elites and middle classes to accumulate wealth. This balance of interests can only be maintained for so long as Russian and Chinese governments and their citizens can hedge foreign currency risks through an offsetting accumulation of foreign-owned gold.

This is no longer the case, because to all intents and purposes western capital markets are cleaned out of physical supplies, and the ability of the Western central banks to supress gold prices appears to be ending. And with the West’s financial system no longer able to deliver their most prized commodity, hitherto passive attitudes in Asia to Western currencies are likely to be reassessed.

The gold question has become central to east-west trade. The sensible approach for Western central banks is to defuse the problems arising by taking positive steps to ensure that gold markets operate properly. This is conceptually difficult, because the most likely result, a higher gold price, would risk undermining confidence in the major currencies and most probably damage the bullion banks in London.

Source: http://www.goldmoney.com/gold-research/alasdair-macleod/the-geopolitics-of-gold.html