Keith Barron continues:

“Nobody really knows what they have up their sleeve, whether it’s going to be direct asset purchases, but something needs to happen.  The jobs situation is not improving.  Global economic indicators are continuing to turn down, and things are not getting any better for the American people.

There is an even worse situation in Europe right now....

Continue reading the Keith Barron interview below...


To hear which company $10 billion Sprott Asset Management and Sun Valley Gold

are the largest shareholders of and why click on the logo:

“People believe the ECB is going to throw around a lot of money to help ease the dilemma in Europe.  Greece really has an incredible problem right now because they are going to have to roll over their debt in a matter of weeks if not days, and nobody knows how they are going to do it.

So the ECB is going to have to step in and somehow bail this situation out.  Of course they are meeting incredible resistance from Germany.  The Finns are also now talking about pulling out of the euro.  But I think if Finland does that it might be the end of the euro.  It will start to unravel very, very quickly.

We are also seeing a continued panic surrounding the banking system in Europe, and a lot of people are trying to get out of the euro.  Certainly some of that money has made its way into the gold market and will continue to do so in the future.

I still believe that any country which has a commodity based economy, such as Canada or Australia, is going to be in good shape.  But I believe the Europeans are going to continue to look for the exits, and it’s going to be very, very interesting to watch.”

Barron gave this forecast for the next 6 to 12 months: “Over the next six to twelve months I expect to see an incredible amount of money printing.  I also believe we will see a turnaround from talk of deflation, and it will flip very rapidly and in dramatic fashion towards inflation. 

The inflation will be jump-started by this incredible amount of money printing.  All of the money printing that’s going on right now is not having enough of an impact to turn the interest rates and inflation around.  But at some point it will.  It always has in history.  It will flip the other way and it will do so drastically.

We will then be in a situation where the various governments will be printing money just to catch up.  But years in the future we will see hyperinflation.  In the meantime, I wouldn’t be surprised to see interest rates starting to climb over the next 12 months.  And then over the next 24 months, interest rates should climb rapidly.

In that environment you will see gold and silver taking off well ahead of the surge in inflation.  We will see $2,000 gold by the end of the year, and $2,500 possibly by the first quarter of next year.”

Barron also warned:  “I am also watching the uranium story unfold.  The news over the last week and a half is very bullish both for the uranium companies and uranium itself.  BHP announced they are shelving their expansion of Olympic Dam.  Now, Olympic Dam is primarily a copper gold mine, but they also produce a tremendous amount of uranium.

They (BHP) were going to do this expansion and take it up from 8.8 million pounds per year, to 20 million pounds per year of uranium.  Now that’s cancelled.  There are numerous other uranium projects that have been shelved, almost indefinitely, due to price or other issues.

So this is very bullish going forward for the uranium price.  I’ve also mentioned that the US/Russian down-blend program is coming to an end in 2013.  Putin has already said he is not going to extend it.  That’s going to take another 15% of the secondary supply of uranium, for the whole world, offline.

This event will significantly impact the supply of uranium.  Right after this happened there were a flurry of statements.  The United Arab Emirates, who are building four nuclear reactors right now, came out and said that they had negotiated an agreement with a number of uranium producers in order to guarantee supply for years.

It’s written into the contract that the United Arab Emirates is going to pay more than the current spot price.  That’s bullish for the price as well.  I would also like to note that Paladin received $200 million from an undisclosed source, probably the Chinese, to take the uranium from their mines seven years into the future.

The third thing that has happened is that the government of India came out a few days ago and said, ‘We will go worldwide, and we will buy uranium mines.’  The reason for this is they do not have the internal resources in the country of India to fuel their nuclear program.

So unless the price of uranium goes up, and I mean goes up drastically, we are going to see an incredible squeeze next year in the supply of uranium.  I really believe uranium is going to punch right through that $130 all-time high it had achieved, and uranium is going to go parabolic.

This is going to be an incredible situation.  I’ve never seen a setup like this for a commodity in all of my years of watching these markets.  What is shaping up here is unimaginably bullish.”

© 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.

© 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