KING WORLD NEWS - BLOG
BROADCAST../../../../Broadcast/Broadcast.html../../../../Broadcast/Broadcast.htmlshapeimage_6_link_0
HOME../../../../King_World_News.html../../../../King_World_News.htmlshapeimage_13_link_0
BUSINESS../../../../Business.html../../../../Business.htmlshapeimage_14_link_0
GREEN../../../../Green.html../../../../Green.htmlshapeimage_15_link_0
HEALTH../../../../Health_1.html../../../../Health_1.htmlshapeimage_16_link_0
ENERGY../../../../Energy.html../../../../Energy.htmlshapeimage_17_link_0
SPORTS../../../../Sports.html../../../../Sports.htmlshapeimage_18_link_0
GOLD+../../../../Gold.html../../../../Gold.htmlshapeimage_21_link_0
 

Ben Davies continues:


“You’ve had the CEO of Barrick saying, effectively, ‘gold extraction isn’t really economically feasible at these levels.  New supply isn’t going to come on until at least $3,000 (gold).’  So there really isn’t the supply.  China is a great example of where they’ve got desperate mining. 


In 2011 they had 360 tons of supply....


Continue reading the Ben Davies interview below...




Advertisement


To hear which company legendary Keith Barron founded, personally

invested millions into, and is poised to become

a uranium superpower click on the logo:




“The Ministry of Information & Technology in China just recently said they want to try to get supply up to 450 tons. 


Why do they want to do that?  Because they have come out and actually given guidelines to the demand in China.  They think it’s going to be over 1,000 tons.  In 2011 that (demand) was around 750 tons.  If you increase supply by 90 tons and you increase demand by 240 tons, you are looking at a 150 to 200 ton deficit going forward.  So, again, there is this huge appetite and demand for gold.


So never mind the fact that you can’t extract it economically at these levels.  This, to my mind, puts a floor in the price in and around these levels.  We talked about (high production costs) down at around $1,400, and it’s just ratcheting up all the time.


Volatility is extremely low (in the gold market).  I would say it’s almost at decade lows.  One month volatility is down around 9%.  Three month volatility is at 12.5%.  On average, for the past five years, that’s been around 20%.


So implied volatility means the future volatility priced in by market makers.  So when that’s considerably below the historical volatility over certain time regimes, that’s normally very conducive to a reaction in the market one way or the other.


Based on this bull market that exponential reaction, (we’ve talked about price control suppression) would be to the upside.  Higher prices are coming into next year.  The volatility premium is so low, it means the longs have taken all of the pain now, and the shorts are more exposed to upside prices.”


© 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.


This was a tremendous interview with Davies.  In this segment Davies gives specific price projections in both the short and intermediate-term for gold.  He also discusses Goldman’s call for the end of the gold bull market and much more.  The interview with Ben Davies is available now and you can listen to it by CLICKING HERE. 


The interviews with Ben Davies, Dr. Stephen Leeb, Eric Sprott, Gerald Celente, James Turk and Egon von Greyerz are available now.  Also, be sure to listen to the other recent KWN interviews which included Michael Pento, Wilbur Ross, Don Coxe (BMO $538 billion) and Art Cashin (UBS $612 billion) by CLICKING HERE.


Eric King

KingWorldNews.com

To return to BLOG click here.




 
 
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.html
KWN BLOGhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlshapeimage_24_link_0shapeimage_24_link_1

© 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
CLICK HEREhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlshapeimage_27_link_0shapeimage_27_link_1
KWN Blog
Archiveshttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlshapeimage_28_link_0shapeimage_28_link_1
http://www.kingworldnews.com/kingworldnews/Broadcast/Broadcast.html