“The Price Damage Is Almost Beyond Belief At This Point”

Today one of the savviest and well connected hedge fund managers in the world told King World News the price damage in gold and silver “is almost beyond belief at this point.” Outspoken Hong Kong hedge fund manager William Kaye also warned KWN that a “criminal” syndicate of banks has now positioned themselves for a massive and spectacular rise in the price of gold and silver, and his firm’s money is long metals for the ride. Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, had this to say in this remarkable interview.

Eric King: “Bill, your thoughts on this continued smash in gold and silver that we are seeing?”

Kaye: “It’s more of the same, Eric, that we talked about last time. They choose the thinnest sections of trading in gold, Asia time, for most of the smash. Most of the price damage was done overnight in the United States during Asian trading.

They took the price of gold down to levels that we haven’t seen for years….

“As I talk to you now we are now trading in the $1,220s, which is a new multi-year low. So the bulk of the damage was done in two time periods: In Asian trading and in equally thin Chicago (COMEX) trading, when most of the real players have already gone home.

The price damage is almost beyond belief at this point. Two years ago we were above $1,900 on gold and rightfully so given all of the events that were occurring and are still occurring. Now we are in the mid-$1,220s, which given the policy response to what is an ongoing crisis, is incomprehensible.

No one can make any logical sense of what has taken place because the currency wars that are fully underway everywhere in the world justify gold prices that are not only higher than they were two years ago (above $1,900), but they justify prices in our view that would clearly be above $2,000 and maybe even above $3,000.

Those prices I am giving you are the prices gold should be trading at today. Meaning they are not looking out on to the horizon because the money printing that is going on is not going to stop tomorrow. In fact it’s going to continue and if anything, in our view it will accelerate.

So the only thing that can explain the price behavior in gold has to be a concerted raid. What is of particular interest is that this manipulation really has to be the Fed, or coordinated intervention with the other central banks, including the ECB. The reason for this is because it’s very clear, if you pay attention to Andrew Maguire on KWN, that the bullion banks who were very short when this raid commenced in mid-April, are now long, and some are very long.

So the setup here is pretty fantastic. For people that are looking to add to their positions, we are certainly at levels now that look absolutely compelling, and levels that we may not revisit again in my lifetime.”

Kaye also added: “I strongly believe this is being done to create even more outsized profits for the bullion banks. We had a very controversial recapitalization of the banks, similar to what occurred in the 1930s in the United States, and most of the world at that time was on a gold standard.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/26_The_Price_Damage_Is_Almost_Beyond_Belief_At_This_Point.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

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.”

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/7_Former_White_House_Official_Discusses_Gold_Manipulation.html