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Ben Davies - Expect $2,100 Gold by the End of December

With stock markets in turmoil and gold surging, today King World News interviewed Ben Davies, CEO of Hinde Capital, to get his thoughts on where things stand. When asked about the action in gold Davies stated, “Eric these are epic times, really quite wild. We had a near $100 selloff last week (from the peak) and people were calling the top. It felt like there was a lot of selling into the lows on Friday and the market came back strong.

I think it’s playing out pretty much as we expected, but it definitely felt that options for people were limited and there were fewer and fewer places for people to run out of the fiat currency system. I think they’ve begun to realize that gold is one place where they have some stability.”

Ben Davies continues:

“Three days ago we did feel that silver was being held back by the systemic risk that was prescient. We moved to a full weighting in silver by selling some gold and moving more funds into silver. Watching the price action in silver the last three days it is quite obvious to me that someone is trying to hold the price of silver down. As I said we bought some silver and it is holding very well.

Despite the near $6 selloff in oil today, silver is trading up over 50 cents on the day. It feels as though silver is throwing off its industrial shackles and is performing as a monetary asset. Each bounce that we get in the equity markets will serve to underpin silver. I believe this is setting up for silver to test the $50 high over the next couple of months.

Logically it doesn’t seem like gold will have a drawdown but I am looking for a pullback to the $1,675 level from here. In order for that to be facilitated gold would need to close under $1,800 by the end of the week. Because the gold/silver spread has widened dramatically, I actually believe that silver can trade higher while gold is experiencing some weakness. Silver will resist being pulled lower and each time gold bounces, silver will be released higher....

Continue reading the Ben Davies interview below...

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“Sentiment is running high in the gold market. Twitter trends just made a record show for ‘buys on gold!’ Now for sure when we face the final exit from all asets to gold we must all ignore such sentiment and run with the crowd. But for now let’s be objective. The market for its own health needs a breather; this recent retest of the highs has been on short covering in the paper market from Friday.

The Merkosy Plan, if you can call it that, is running against an irate clock, so is the Super 12 Committee in the US. The market is the irate clock and it is speeding up. I am not sure they will have an acceptable solution to appease it. This will only exacerbate the strong demand for physical metal, that is coming as it always does from the Indian subcontinent and China over the next quarter.

We are looking for the gold price to hit $2,100 by the end of December and then we will have affirmative action from the authorities.”

The KWN interview with Ben Davies is available now and you can listen to it by CLICKING HERE.

Eric King

KingWorldNews.com

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