© 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 This material may not be published, broadcast,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:

“The answer was more stimulus, and at the time gold was $700.  Gold went from $700, on the back of that stimulus (in 2008), to $1,900.  I think we are about to repeat that same pattern.  Here we are, gold is at (roughly) $1,600, and there are a lot of question about the weakness in the global economy. 

There are certainly expectations that we are going to see a renewed round of stimulus coming out of Europe and the US....

Continue reading the Sean Boyd interview below...


To hear which company has one of the highest grade gold deposits

in the entire world, as well as a number of other

extraordinary projects click on the logo:

“We’ve seen the first large stimulus coming out of China.  So if we get more stimulus globally, that has the potential to take gold from the $1,600 range, to the $3,000 range, which would be akin to the move from $700 to $1,900.

So that $3,000 an ounce gold number is certainly not out of the question, given the weakness in the overall global economy, and the serious issues around debt which is going to result in more stimulus, and as a result debasement in paper currencies.

When they (central planners) talk a different story between austerity, and stimulus only if needed, I think the reality is stimulus is needed, and we will see stimulus in one form or another coming out of Europe and the Fed.  On the back of what we’ve just seen in the last few days coming out of China, it’s all going to be important for the gold price going forward.”

Boyd also added:  “Relative to bullion, gold equities are trading at likely their lowest levels (in history).  I think that chart (from Caesar Bryan), when I look at it, just screams opportunity. 

It’s our theory going forward, that as gold continues to perform, and moves higher through $2,000 (on its way) to $3,000, we’ve got a situation here where the equities can outperform gold during this next run.  (Gold) equities will provide the leverage (to gold) that people have been looking for, that wasn’t there in the past few years.

The industry, in terms of market cap, is still extremely small relative to other equity options out there.  You get money moving into a relatively small sector, that’s when you can have really sharp moves in equity valuations.  So it’s not going to surprise us, as gold moves, to see 10% to 15% daily moves in some of these (gold and silver) equities.” 

Boyd also warned of a decrease in the supply of gold:  “Not only will we see increasing investment demand, we will (also) see increasing central bank demand for gold.  We will (also) see reduced supply because companies are looking for more measured, lower risk growth.  So the combination of those two is what is going to help propel the gold price higher.”

In this interview Boyd lets KWN listeners know exactly what is happening in the gold market.  This is also a must listen for anyone who invests in the mining shares or is looking to invest in the miners because he lays out what to expect in that sector going forward.  The extraordinary KWN Sean Boyd segment will be available later today 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 John Hathaway, Eric Sprott, Jean-Marie Eveillard, John Mauldin, Gerald Celente and Ben Davies are available now.  Also, be sure to listen to last week’s line-up of other KWN interviews which included Rick Rule, Egon von Greyerz, Bill Fleckenstein, Dr. Keith Barron and Nigel Farage by CLICKING HERE.

Eric King

To return to BLOG click here.