Silver To Eclipse $100 On Skyrocketing Chinese Demand

With gold and silver rebounding, today acclaimed money manager Stephen Leeb told King World News that silver is now setting up to eclipse $100.  Leeb believes that China, which has been the primary driver in the gold market, is now going to push the silver price over $100 as their consumption of physical silver is poised to skyrocket.  Here is what Leeb had to say in this powerful and exclusive  interview.

Leeb:  “We are seeing massive demand for photovoltaics out of both Japan and China.  We are also continuing to see massive demand for silver in the Middle-East for this type of energy infrastructure as well.  Eric, KWN readers need to understand that the demand for silver is literally set to explode because of the enormous increases in demand for physical silver because of photovoltaics….

“While all of this is happening, the mainstream media is saying that China is about ready to fall apart.  But the reality is that China plans to urbanize a remarkable 200 million people over the next 10 to 15 years.  Well, the cost is roughly $50,000 per person.  So China is going to be spending a massive amount of money for materials — copper, lead, zinc and especially silver.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/16_Silver_To_Eclipse_$100_On_Skyrocketing_Chinese_Demand.html

A Financial Hurricane & Cracks In The Global Financial System

On the heels of continued turbulence in key global markets, today 40-year veteran, Robert Fitzwilson, put together another tremendous piece.  Fitzwilson, who is founder of The Portola Group, discussed a financial hurricane, cracks in the global monetary system, and what this all means for investors.  Below is Fitzwilson’s outstanding and exclusive piece for KWN.

Fitzwilson:  “This is from ‘Rhyme Of the Ancient Mariner’ by Samuel Taylor Coleridge:

All in a hot and copper sky,

The bloody Sun, at noon,

‘Right up above the mast did stand,

No bigger than the Moon.

Day after day, day after day,

We stuck, no breath no motion;

As idle as a painted ship

Upon a painted ocean.

This literary piece is describing the ordeal of a ship and it’s crew trapped in a part of the ocean called the Doldrums.  The area is a low-pressure zone in the vicinity of the Equator where sailors experienced squalls, thunderstorms and even hurricanes….

“As Coleridge’s words describe, however, it is more commonly known for trapping sail-powered boats in windless seas for days and weeks at a time.  As defined by Merriam-Webster, the term doldrums can indicate despondency, listlessness, as well as stagnation, inactivity or slump.

We must say that the word doldrums has come to mind in recent months.  While there have been dramatic and historic movements in just about every asset class, there have been no resolutions to the innumerable economic, financial and political problems we face.  Europe, China, Japan and the United States have all made attempts to break out of their doldrums, only to encounter a lack of effect (no velocity of money, no inflation) or hurricanes (worst bond market in 50 years, historic decline in the Dollar, and tumbling equity markets).  It is easy in this type of environment for investors to become confused and even despondent.

We wrote some time ago about a type of volcanic eruption described as “Plinian”.  A Plinian eruption shoots gas and particulates high into the atmosphere in the form of a column.  At some altitude, the weight of the column is too much, and it collapses.  As the material reaches ground level, it spreads at tremendous speed.  This was the eruption of Mt. Vesuvius in 79 A.D.  While the column was rising, the initial terror wore off for the observers as they watched it climb higher and higher.  Most did not flee and paid for their complacency with their lives.

As we watch the spasms in the various markets, we know it represents that something is terribly amiss.  The geopolitical, economic and financial complexities comprise a chaotic system.  By definition, it is impossible to predict the events that will lead to resolution.  History is our best guide, but even that cannot help us with the timing of those events.  The Romans could not time the collapse of the volcanic column, and nobody can predict the timing of the collapse of our current financial eruptions.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/14_A_Financial_Hurricane_%26_Cracks_In_The_Global_Financial_System.html

 

Gold & Silver Smash & Fires Burning Everywhere In The World

Today Egon von Greyerz spoke with King World News about the gold and silver smash, and the disturbing reality of what is happening in various troubled countries around the world.  Investors have also seen some shocking moves in global markets recently and below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this powerful interview.

Greyerz:  “On a day like today investors have to put aside the short-term action in gold and silver and look at the fundamentals.  It’s hard to know where to start, Eric.  There are fires burning everywhere in the world, and these fires can’t be extinguished.

Therefore, all governments and central banks will do is put more fuel on the fires because they don’t have any other tools to rectify these massive problems that we have in the world….

“Any of these fires could be the catalyst for the next major crisis, and the next crisis in the world will be much more severe than in 2008.  I’ve previously stated that Japan is a basket case that can never be saved.  And of course Japan is the world’s 3rd biggest economy.

When you look at China, its financial system and economy is a bubble.  The bursting of this bubble will likely have a massive effect on the world economy and global trade.  Therefore, both Japan and China will continue to expand credit and print money.  That’s the only thing they can do to save their economies.  Of course the consequences will be inflationary, and most likely hyperinflationary.

If you look at Europe, we just had two central banks confirming that their economies are in real trouble.  The ECB just had a press conference where Draghi stated that rates will stay low for an extended period.  The ECB is under tremendous pressure.  It’s balance sheet is full of toxic debt from its member countries.

These debts are guaranteed by the member countries, and some also by member country banks, and these debts are held on the ECB balance sheet at par.  These assets are not worth par.  Some of it is worth less than 50% of par.  So you have a potential write off for the ECB of hundreds of billions of dollars, or maybe even one trillion dollars.  And even though the member countries and some banks are guaranteeing the money, they don’t have the money to pay the ECB.  So the ECB will be forced to print a lot more money.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/5_Gold_%26_Silver_Smash_%26_Fires_Burning_Everywhere_In_The_World.html