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.
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.”