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Ben Davies continues:
“If you look at it on a relative basis, gold has maintained its purchasing power. It’s done exactly what it should be doing. Short-term I am concerned that we could be going down to $1,400. Yes, that’s a real risk in this environment.
The Greek situation that’s sort of bubbling away, there’s no change in the status quo. In some ways, as awful as it sounds, it would have been lovely to have had an extreme event happen so that we get to the end of this process....
Continue reading the Ben Davies interview below...
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“Maybe it would have needed a Berlin airlift as they (Greece) were exiting out of the euro, to come and actually dump food on Greece to help people out, who would have been starving as they exited out of the eurozone and the currency. But at least we would have been nearer to the bottom.
Unfortunately, the way it’s going we’re just constantly protracting out this problem. So while that’s happening and the solutions are completely wrong, the risk is this constant weight of deleveraging, and that is weighing on all assets.
But people are ultimately exiting out of these fixed income assets, this sovereign debt, and they are going to be going into gold. I can see that the Asian demand is still very palpable. In fact it’s increased from last year quite dramatically. That is the buyer in the market. The question is, will they (China) be there over the summer months?”
Davies also added: “Look, if you were to run M4, M3 numbers, etc, and assert a value to gold on an appropriate metric relative to that, obviously gold would be at stupendous prices. I believe that gold has considerable room to go to the upside, four or five times (Gold price above $6,000). I think that’s not an inappropriate suggestion.”
The information above is just a small portion of this very timely interview. He discussed key markets, silver, mining shares, what is taking place in Europe and the gold market at length. The KWN interview with Ben Davies is available now and you can listen to it by CLICKING HERE.
© 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 This material may not be published, broadcast, rewritten, or redistributed.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 Nigel Farage and James Turk are available now. Also, be sure to listen to this week’s line-up of other KWN interviews which include John Mauldin, Egon von Greyerz, Gerald Celente, John Embry and Bill Fleckenstein by CLICKING HERE.
Eric King
Ben Davies - Eurozone, Deleveraging & Gold to Break $6,000
With tremendous volatility in global markets around the world, today King World News interviewed Ben Davies, CEO of Hinde Capital. Davies told KWN, “... it would have been lovely to have had an extreme event happen so that we get to the end of this process.” Here is what Davies had to say about what is taking place: “I think the mini-boom that we had in the nominal gold price, up to $1,900, we’ve been working off that mini-excess sideways. The disinflationary pressures from this concept of credit dying is worrying, and I think it weighs on all assets prices. But gold is doing what it should be doing.”
© 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.
June 23, 2012
