“This Will Trigger A Tidal Wave Of Short Covering In Gold”

With Ben Bernanke ready to deliver his semi-annual monetary policy report to Congress starting today, a legend in the business warned King World News about what is going to “trigger a tidal wave of short covering in 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 with KWN about the massive global demand for both gold and silver and what he is directly experiencing in the marketplace.

Barron: “Right now I am focused on the gold price. We are up over $100 off the lows on gold and silver has broken through $20. All of this is thanks to Bernanke, who shot himself in the foot yet again with talk about tapering QE again. This trashed the stock market briefly and had spectacularly chaotic consequences in the bond market as well….

“Anyway, the net effect was this caused a tremendous amount of disruption in key markets and I think he was chastised for that. So he came out with a speech and it was a complete turnaround from the FOMC minutes. The 180 degree turn was, ‘all systems go, and keep the printing presses going.’

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/17_This_Will_Trigger_A_Tidal_Wave_Of_Short_Covering_In_Gold.html

Here Is The Summer Catalyst Which Will Launch Gold Higher

On the heels of the release of the Fed minutes, and with crude oil trading above $105, today a legend in the business spoke with King World News about what is taking place in the gold, silver and bond markets, as well as what is taking place in Europe. 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 cautioned that we should expect to see more fireworks coming out of Europe this summer which will impact the gold market.

Barron: “Today the FOMC minutes came out for June. The gold price bounced briefly before retreating. Clearly it scares all market participants if the word ‘tapering’ gets mentioned. The bottom line is that most Fed members were still in favor of continuing with QE because the job market continues to be weak.

When Bernanke was interviewed about the effects of QE, he was asked why interest rates were going higher? He responded by saying he ‘was puzzled.’….

“Well, to anyone who understands economics, when you print massive amounts of money it always results in higher interest rates over time. It’s only because of government interference that bonds held up as long as they did. The bond market had also been resilient for a longer period of time because of the fact that the economy is not really in stagflation or deflation, it’s really in a depression.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/10_Here_Is_The_Summer_Catalyst_Which_Will_Launch_Gold_Higher.html

Available Gold Supply Disappearing As Gold Price Plunges

With gold breaking the $1,200 level, today a legend in the business warned King World News that continued manipulation by Western governments in the gold market is now destroying future gold supply.  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 warned KWN that available physical supplies of gold are disappearing as the plunge in the gold price intensifies to the downside.

Barron:  “ETFs continue to be stripped of gold and the bullion banks continue selling the gold overseas when they can arbitrage the price.  So investors just need to sit tight and ride this out because available physical supplies of gold are dwindling rapidly….

We are at or very near the bottom because gold has now tumbled below the cash cost of production for the mining industry.  So almost nobody is making money mining gold at these prices.  As gold falls below the average “cash cost” it begins to get very dire and we start to see mines close.

I have just seen two operations close without any notice in the last couple of days.  Certainly the world is not out of the woods yet, and another crisis is just around the corner.  A major crisis will emerge in Europe or the United States that will move the price of gold significantly to the upside.

In the meantime, if the bullion banks do not turn the price of gold higher we are going to see gold production plummet.  I’m not sure that’s what Western governments want to see at this point.  They (Western central banks) are already supplying gold, along with the ETFs being drained, in order to meet the massive global demand for gold.  The last thing they need is to see a supply crunch.

If that’s the case, the gold simply won’t be there anymore and Western vaults will be drained at an ever greater pace.  There have already been a lot of projects which have been canceled or deferred and this will definitely impact supply already in years to come.

It takes a long time to commission a mining project, and when they cancel it or defer it they stop work and it takes a long time to get going again on these projects.  So supply will already be constrained in the marketplace going forward, now it’s just a question of what degree supply will be constrained.”

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/27_Available_Gold_Supply_Disappearing_As_Gold_Price_Plunges.html