© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

Subscribe to RSS
KWN Blog

Sean Boyd continues:

“What we’ve seen since then is very constructive, and certainly follows that path where we’ve had continued stimulus.  We are now going to go into the phase where investors realize there are fundamental problems surrounding the US debt situation.  The ongoing stimulus that will be needed will drive the US dollar lower, and this will result in gold continuing higher.

What we have seen is a game-changer....

Continue reading the Sean Boyd interview below...  


To hear the man with over 40 years of experience in the resource

markets and how he is positioning his clients to weather

the current financial storm click on the logo:

“The difference in the equation now is that even though we are seeing weaker demand from India, the central banks have more than offset that weakness.  The central banks are big buyers now, and they appear to be buying on dips.

The appetite for gold from central banks will continue.  Their foreign exchange reserves are growing, and they are having a hard time keeping their gold reserves up as a total percentage of reserves, especially given how quickly the reserves are growing.

This is just going to result in more demand coming out of the central banks, which is going to be one of the major factors or catalysts that’s going to drive gold to the $3,000 mark.  But the last thing these central banks want to do is create disruption in the gold market.

So you can see, with the announcements out of the central banks, a steady addition of gold to their holdings, and I think that’s the type of thing we will continue to see.  This will underpin the gold price, and certainly result in periods where gold is doing extremely well.  The bottom line is central banks will continue to diversify out of paper reserves and into gold.

We are seeing the gold ETF holdings at record levels, and that’s institutional as well as retail demand.  But participation is nowhere near what we will see in the future.  I agree with Richard Russell who says, ‘We are in the second of three acts in terms of the gold bull market.’  We are still not in act III where we will get more frenzied buying.”

Boyd also added:  “We’ve been doing a number of investor presentations, some of those in Europe, and the expectation is that gold will move higher.  Certainly that point is clear.  What was surprising is that people are significantly underweight gold equities.

They still have their doubts about whether gold equities can actually outperform gold in the next move up.  I think that creates tremendous buying opportunities in terms of getting into the equities now.  Our view now is that the businesses are now much better, and they will be run in a more disciplined way. 

They will be run with a bias towards return, rather than growth.  All of this will result in better leverage for the shareholders of quality mining companies.  Investors as a whole have not yet moved into the equities, but that will come.  Right now, the valuations of the equities relative to gold are near historic lows, and that’s despite the fact that we’ve had a good last two or three months. 

That’s an indicator of how well the gold equities can do as we move forward.  The fact that so many investors and funds are underweight gold equities just supports the thesis that they will continue to outperform as we head higher in terms of the gold price.” 

When asked about Agnico Eagle specifically, Boyd responded, “Agnico had a tough year last year, and we had to address a couple of issues on the operating side, which we did.  The strong performance in 2012 has really been because we’ve been able to execute on what we said we were going to do.  So it’s been a good year and we expect that to continue from an operating perspective.”

© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The interviews with John Embry, Gerald Celente, Rick Santelli, Michael Pento and Don Coxe are available now.  Also, be sure to listen to last week’s line-up of other KWN interviews which included, Pierre Lassonde, Rick Rule, Nigel Farage, Ben Davies, Dr. Keith Barron and Jean-Marie Eveillard by CLICKING HERE.

Eric King

To return to BLOG click here.