On the heels of the recent capitulation in the gold and silver markets, today King World News interviewed the man who has been in the gold and silver business for over 44 years, and what he said about the panic selling that is now taking place was truly fascinating.
Eric King: “Bill, I know you’ve had many gold and silver sell orders taking place recently. You’ve been watching these markets for decades. What is happening here as you see it?
Massive Liquidations Taking Place
Bill Haynes, founder of CMI Gold & Silver, one of the largest metals dealers in the United States: “Eric, today sell orders totaled 5 times the buy orders from our clients. In my 44 years of being in this business, this is a classic sign of a major bottom. This type of panic selling has been going on for quite a while. Meaning, this is comparable to what we saw in the 1990s, when gold was in the $200s and silver was in the $4 area. In fact, we had more buying in the 1990s than we have now…
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Panic Selling Creating Major Bottom
Bill Haynes continues: “KWN readers have to understand that the average person does not buy at the right time and they don’t sell at the right time. So this is typical capitulation behavior. Only the strong hands are left holding physical gold and silver at this point. As I said to you before, I have been doing this for almost half a century, and I am shocked at how bad the sentiment is in the gold and silver space at this moment in time — it’s worse than what we saw at the end of the brutal 5-year gold and silver bear market that bottomed at the beginning of 2016.
$2 Trillion Of Additional Liquidity Each Year
People also need to understand that the financial problems of the world are not going to go away. Central banks are adding to the money supply at a rate of about $2 trillion a year.
Central Banks Buying Virtually All Financial Assets
Central banks are now buying stocks, bonds, and mortgage backed securities. In fact, they are using any excuse to buy almost any financial asset. The Bank of Japan now owns 40 percent of Japanese government bonds. They have also said they will print an unlimited amount of yen to keep their interest rates near zero. I just read a 45 page report where the head of the Bank of Japan (Kuroda) stated that he will print an unlimited amount of yen to keep interest rates at zero. As I said, the Japanese central bank already owns 40 percent of government bonds. At what point will they own all of the government bonds? And the Bank of Japan is also a huge buyer of Japanese stocks.
The Biggest Financial Train Wreck In World History
And virtually the same thing could be said about all Western central banks. In fact, in the United States and Europe we are seeing the same type of activity by Western central banks. As I said, Eric, the central banks of the world are adding about $2 trillion a year to global liquidity. Remember also, Eric, that there is no such thing as endless prosperity, so when this scheme ends, it will be the biggest financial train wreck in world history.
“All Hell Will Break Loose”
Because of central bank interference in financial markets, we are living in a continuous boom/bust cycle, and we are now witnessing the biggest financial bubble in history. When the next bust comes, people had better be prepared because all hell will break loose. As the train wreck unfolds, Eric, that will be the time that gold and silver will enter the last leg of their secular bull markets. This will be the longest and strongest move of the entire advance. Meaning, the fireworks on the upside will be breathtaking.”
Remain Disciplined When Others Are Panicking
King World News note: For those of you who dollar cost average purchases in gold and silver, don’t get cute and try to time these markets. Stick to your discipline and purchase gold and silver at the same time each month or on the same rotation as normal. As the next leg of the secular bull market advances, you will be very glad you remained disciplined when others were panicking.
***KWN has now released the remarkable audio interview with legend Rob Arnott and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: China Dumps US Bonds For Straight Month But Look At What Hedge Funds Are Doing CLICK HERE.
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