With gold moving well above $1,250, many market participants are trying to understand: Why gold is surging and why there is so much turmoil in overseas trading in Asia?
Fortunately, KWN has the answer for its global readers
The reason for the surge in gold and the turmoil in overseas trading in Asia is that there is extreme nervousness about the plunge in Hong Kong’s stock market.
Below, Art Cashin issued the following warning to King World News on January 20, 2016.
Hong Kong Derivative Nightmare May Increase Global Panic
Art Cashin: “I would keep my eye on Hong Kong. There are concerns growing that there are a variety of derivatives in Hong Kong which are priced at current levels and that a lower move would lead to some forced selling — the equivalent of margin calls. So the place I’ll be watching … is Hong Kong to see how its market acts.”
Hong Kong hit a closing low of 18,542 at the time Art Cashin issued that warning to KWN readers around the world. Today shares in Hong Kong have already traded as low as 18,486, briefly breaching the key level that would begin to trigger the derivative nightmare in Hong Kong. The authorities immediately stepped in and moved the Hong Kong market a bit higher, currently trading at 18,529.
If authorities cannot keep the Hong Kong market levitated, then the derivative nightmare in Hong Kong will begin to unfold. For what it’s worth, these were the same type of derivative warnings Art Cashin issued to KWN regarding crude oil, right before the price of oil collapsed 20 percent in a matter of days. KWN readers were ahead of the news back on January 20, and we will keep you informed of key developments as they unfold.
***Felix Zulauf’s remarkable audio interview, where he discusses the gold market and tells listeners exactly how they can avoid wealth confiscation as well as how the global collapse will unfold, and much more, has now been released and you can access it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: This Is How Frightening The Global Collapse Has Now Become CLICK HERE.
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