We Are Witnessing Historic & Shocking Events In Gold

With gold and silver skyrocketing and the U.S. dollar plunging, today the man who first spotted the historic LBMA backwardation told King World News that we are now witnessing shocking and earth-shattering events in the gold market.  Incredibly, last Monday James Turk was the first person in the world to expose the historic backwardation event at the LBMA and King World News was the first to report on it.  Other sites soon followed suit by covering this earthshaking event, but today the man who first spotted it tells KWN readers around what to expect next as these incredible and historic events unfold and the gold market catches fire.

Turk:  “Eric, when I told you early on Monday that something shocking had taken place in the gold market, it really was an earthshaking event and we are seeing the results of that now.  It was clear that there was going to be an explosion higher in gold and silver because the prices simply could not be sustained at those critically low levels.

  • Dow Jones 30,000 Trigger Leaked by 27-Year-Old Stock Research Firm CLICK HERE
  • The Inevitable: Dow Jones 30,000 CLICK HERE

So there was going to have to be a catalyst and today was the first of many that are still to come….

“Bernanke has come out after-hours with some statements in a speech and it’s created this explosion in the prices of gold and silver, and the U.S. dollar appears to be in freefall.

I believe that gold has been in backwardation for quite some time, but it’s been hidden because interest rates have been manipulated.  So when I pointed out early Monday that the LBMA reported official gold backwardation, that was truly an earthshaking event.

While many sites then jumped on the bandwagon and interpreted this event in different ways, the reality is that it revealed that there is a shortage of physical gold at these prices.  So it is not at all surprising to me that the price has risen as sharply as it has, because those desperate to get their hands on physical gold are now bidding up the price as we speak.

This is a desperate attempt to get entities to part with their physical gold and take paper currency instead.  In my view it’s going to take much, much higher prices to get these entities to part with their physical gold, if they are willing to part with it at all.

The reality is that all of the physical gold is now in extremely strong hands after the latest shakedown.  So tricking people into parting with it might prove to be an incredibly difficult, if not impossible task.”

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/11_Turk_-_We_Are_Witnessing_Historic_%26_Shocking_Events_In_Gold.html

Here Is The Investment Opportunity Of A Lifetime

Rule: “The thing that is most interesting to me right now is the turbulence in energy markets. The energy markets are so large and there has been such incredible turbulence in them that it has definitely caught my attention. The focus of my financial attention has been attempting to get either debt or equity deals done among the micro-cap issuer community in junior mineral or exploration companies. In that I have been unsuccessful….

Eric King: “The sentiment on gold and silver is at the dead lows even though the metals have bounced here.”

Rule: “I think that’s a continuation of an earlier theme, and I don’t think people are paying attention. In the gold and silver markets you have been seeing the futures market for a substantial period of time setting price, as opposed to the physical market.

  • Dow Jones 30,000 Trigger Leaked by 27-Year-Old Stock Research Firm CLICK HERE
  • The Inevitable: Dow Jones 30,000 CLICK HERE

At the same time you are seeing the selling pressures that drove the physical market lower begin to abate. Those selling pressures were the unwinding of leveraged, momentum-driven carry trades. These involved either gold futures or the gold ETFs.

All of this has resulted in a massive accumulation of physical gold and silver into very strong hands. This involves players in the Eastern hemisphere, as well as retail investors who are unleveraged, that are buying physical gold and silver.

We are also beginning to see the futures markets bottom out at the same time the physical market is incredibly strong. We have also seen the gold lease rates have gone up fairly substantially. This strongly suggests that a lot of the physical gold, which was in bank hands and available for leasing, has been disposed of into the physical markets.

These are fairly bullish signs. I can’t tell you exactly how it’s going to play out, but I do believe that at the very least, in the near-term, the gold and silver markets will stabilize.”

Eric King: “With things as decimated as they have been in the gold and silver space, many times you see markets come out of the hole and it doesn’t really take news to drive it. The markets just start going higher.”

Rule: “You are exactly right. What happens is that you exhaust the sellers. The interesting thing is that the buyers are somewhat exhausted too. It’s sort of like two ‘world class’ fighters who have been battling for 13 rounds and only have 2 more rounds to go, but neither have much energy left to hit each other.

But what you just said is exactly what I’ve experienced in past market cycles like these. The stocks start to move up because they stop moving down. Again, you exhaust the sellers. Everybody is looking at tax loss selling this year, but people forget that you have to have some gains to shelter with the losses. And U.S. speculators haven’t done that.

Furthermore, in Canada where you can take losses this year against gains that you acquired in the three prior years, what you are finding is that the people usually were able to use up those prior gains with last year’s losses. So I suspect that tax-loss selling this year will be much less pronounced than it has been in earlier seasons.

I strongly believe that the highest quality mining shares will move higher the rest of the year, and I certainly believe that the worst of the pressure is off of the junior stocks. There has just been a lack of buyers to meet the lack of sellers.”

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/12_Rick_Rule_-_Here_Is_The_Investment_Opportunity_Of_A_Lifetime.html

Price Destruction In Gold & Silver Will Be A Distant Memory


On the heels of the surge in gold and silver, today acclaimed money manager Stephen Leeb told King World News the price destruction we have seen in gold and silver will soon be a distant memory.  Leeb also spoke with KWN about the desperation by the West to suppress the price of gold and how it is about to fail.

Leeb:  “My thoughts are that Bernanke surprised me last night.  He came across as very dovish, and this is a man that knows exactly what he is doing.  He doesn’t speak without thinking about what he is saying and what effect it will have.  So you have to ask yourself, why was he so concerned about getting across a message that the Fed is still quite dovish, and highly likely to continue for quite some time with QE?….

“There are a couple of reasons:  One is the economy is not nearly as strong as what has been painted in the press.  So the economy is still in recession.  The other concern Bernanke has is that the U.S. dollar has been very strong.  Any suggestion of cutting back has seen the dollar surge and that is not what the Fed wants.  So the Fed is trying to talk the dollar down.

  • Dow Jones 30,000 Trigger Leaked by 27-Year-Old Stock Research Firm CLICK HERE
  • The Inevitable: Dow Jones 30,000 CLICK HERE

In that environment, how can investors not be bullish on real stores of value?  Whenever a country’s currency strengthens, they immediately do whatever they can to bring the value of their currency down.  So gold and silver are starting to surge once again.

I have to tell you that I don’t think the West has given up yet on trying to hold gold down.  But right now you have backwardation in gold and that’s rarely ever seen.  This is only seen when there is a shortage of gold.  Where is that shortage of gold?  In the West.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/11_Price_Destruction_In_Gold_%26_Silver_Will_Be_A_Distant_Memory.html