Don Coxe continues:

“What this suggests is that there are sellers around the $1,800 level.  The mains support, recently, has been coming from central banks, but the ones that are admitting to buying gold are the small central banks.  We haven’t had the support this time of year that we usually have out of India because gold, in rupees, is not just at an all-time high, it’s at an astronomic high.

So with Diwali coming up (in India) next month, buying the usual amount of gold for Diwali is an expensive proposition.  However, gold is trading at an all-time high for currencies in the world, if you put them all together....

Continue reading the Don Coxe interview below...


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“It’s the dollar price of gold where it isn’t at an all-time high.  So since gold investors live all over the world, what it means is that gold has been a tremendous investment.  Gold has (also) been trading at an all-time high in euros. 

Gold is a global asset, and as a global asset it’s trading at an all-time high.  That tells you that as this world gets smaller, gold gets bigger.  The rational response that’s being taken by the rise in gold prices is a reflection of the bad news. 

One of the indicators I use to see how these things are working is Investor’s Business Daily publishes, every day, a summary of the six month performance of 197 groups in the US stock market.  As of mid-summer, the gold stocks as a group, on a six month basis, were virtually at the bottom.  For the last week and a half, they’ve been number two.  So what we’ve had is a gigantic swing in the last six weeks in the gold stocks.

Gold has gone up, but the stocks have done much, much better.  As you know from previous comments I’ve made, that’s what we’ve been telling people they should be doing, that the stocks are extremely cheap relative to the bullion.

Even yesterday when gold was down, the stocks were up.  So this performance of the gold stocks as a group is the least commented on, and yet most remarkable transformation of they year.  To go from virtually the bottom of the pack, to virtually the top of the pack, in a matter of less than two months, that’s an extremely rare event for equity markets.  So it’s telling you something.” 

I would just add to Coxe’s comments that the gold and silver markets have been advancing with many market participants looking on in total disbelief, even after the latest round of QE announcements.  The gold bullish percentage is still a stunning 26% below the peak from 2011, and, importantly, the bullish percentage on silver is a remarkable 34% below the peak set in 2011.

What this is telling us is that there is still a great deal of money on the sidelines that has not yet entered these markets.  The commercials may try to slow or stop this advance, but if the money on the sidelines comes pouring in, you will see gold and silver rapidly advance out of this brief consolidation and breakout to the upside. 

The information above was just a small portion Don Coxe’s extraordinary interview.  Coxe covers the key events taking place around the world in this extraordinary segment.  Because of recent action in the markets, this timely and important interview with Don Coxe 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 Pierre Lassonde, Rick Rule, Nigel Farage and Ben Davies are available now.  Also, be sure to listen to last week’s line-up of other KWN interviews which included, Dr. Keith Barron, Jean-Marie Eveillard, Bill Fleckenstein, Egon von Greyerz, Felix Zulauf and Rob Arnott by CLICKING HERE.

Eric King

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© 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.

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