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Central Banks Stockpiling Gold & Governments Hoarding Oil

With gold and silver set up for a big move this week, today King World News interviewed 40 year veteran, Robert Fitzwilson. Fitzwilson is founder of The Portola Group, one of the premier boutique firms in the Unites States. He told KWN that investors need to accumulate key assets while they remain undervalued. Fitzwilson also said gold, silver and oil are being hoarded by a combination of central banks and governments. Here is what Fitzwilson had to say: “It is critical that people distinguish between price and value. As prices fall and ‘utility’ stays the same, that is what creates greater value. In the case of oil, gold and silver, not only is the utility holding steady, but it is actually rising.”

Robert Fitzwilson continues:

“As we learn that the spare capacity to produce oil is flat to declining, the economic value of the existing production rises. As central banks have realized that they were dramatically overexposed to fiat currencies and underexposed to gold, utility for them went from ‘nice to have’ to ‘critical to have.’

The reality is that the value of gold and silver is climbing every day even as the price is becalmed or periodically taking a nosedive....

Continue reading the Robert Fitzwilson interview below...

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“Soon it will be exponential as monumental printing and unfunded liabilities rise into the stratosphere.

We learned yesterday that a new estimate of the health care bill’s cost shows an increase of $17 trillion. We also saw that the estimates of the bailouts in Europe are climbing incessantly as new countries come in to focus requiring bailouts.

We think it is time to admit that we have crossed into the zone of mass insanity. We are talking about money that does not exist to fund current and future liabilities that cannot be paid. Yet governments continue to talk about even more printing, even more bailouts and even more debt financing.

While we have tried to take the high road and hope for a steeper, but measured path to whatever the endgame awaits for us, we are becoming less sanguine by the day.

It feels like time is compressing as the fiscal insanity accelerates, despite the fact that the numbers are completely out of control. As more people come to this conclusion, the misinformation spews out at a faster and faster pace.

Couple this with projections of resource depletion within 20 years, it is hard to envision anything but an accelerating destiny toward historic turmoil and even economic collapse.

Focus on oil, gold and silver. Focus on anything that has value that cannot be inflated away. Our economic destiny is getting closer than any of us would like it to be. The value of these three critical asset classes rises rapidly every day.

Central banks in the Far-East continue to accumulate gold and governments are stockpiling gold, oil and, in some cases, even silver. As long as that trend is in place, prices for these hard assets will continue moving higher.

The bottom line is investors should accumulate gold, silver and quality oil companies at any price while the intrinsic values remain this low.”

Eric King

KingWorldNews.com

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