Griffiths:  “What I would say about gold and silver is a lot of very big entities have a vested interest in those prices not going rocketing up right now.  And I don’t think it takes an awful lot of money acting in paper gold to make the prices break down on a daily basis and that’s what we’ve seen....

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“But so far, the very long-term trends are still steeply upwards for both gold and silver.  They just happen to be extremely volatile in the very short-term.  Of course traders love that and investors hate it.  But I would be long-term long of both gold and silver.”

Eric King:  “Robin, we are seeing this smash today on gold and silver, and you are saying they are just going into the paper market to show weakness here.”

Griffiths:  “Yes, that’s right.  It’s a highly manipulated market.  But if you actually want delivery of the physical metal, it’s extremely difficult to take delivery (of large quantities).  And the people who have been mopping up the actual mined output each year are obviously India and China.

They have taken actions to stop the public in India from buying gold, but the government still has plenty.  And China which had restrictions is removing those restrictions.  And, also, there are signs Russia has been buying.  So in the long-run governments in Asia are in love with gold and think they need more of it, rather than anybody’s paper money, especially paper dollars.  But most of the turnover on a daily basis takes place each day in paper gold, which is far bigger than all of the gold ever mined in history.

Especially in the price of silver it doesn’t take a very big amount of money to take the price down.  And as I say, there are some big entities with a vested interest in the price (of gold) not looking too strong right now.  It think that’s what we’re looking at.

I’m not starting a conspiracy theory, but it’s quite clear that there has been, on no news as such, a very big hit to those two metals (gold and silver).  Those would normally be the metals that would go up if there was a panic, and clearly we are looking at a situation in the American Congress that people might panic on -- so let us (the Fed) send out negative panic signals by getting the metals down.  That’s the mechanism.”

Eric King:  “So, as we have seen many times, the US government is intervening and sending the price lower?”

Griffiths:  “Yes, that’s correct.  Although they may use the big investment banks, acting for them of course.  And we know who the big houses are (JP Morgan, etc).  But what they are dealing in is a piece of paper, and in the short-term they can control that price.

What they can’t control, though, is the supply of actual metal.  And many of the mining companies in the world cannot make a profit mining gold at today’s price.  So the physical supply is not going to increase any time soon.  The price (of gold) would need to make a new high, above $1,920, before the supply actually increases.

My target next year is we will break that ($1,920) high.  But I think in the very short-term we may have to retrace more towards the $1,180 level, to make a higher low than $1,180 ... But on my charts, the very long-term trend for gold, coming up from $250 an ounce, is still absolutely on track.”

© 2013 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.

IMPORTANT - In the aftermath of this takedown in gold and silver, the incredible audio with legendary strategist Robin Griffiths is available now.  Griffiths discussed the plunge in gold and silver, as well as what extraordinary surprises to expect in major markets around the world.  The remarkable KWN audio interview with Robin Griffiths is available now and you can listen to it by CLICKING HERE.

The audio interviews with Robin Griffiths, Jim Grant, Gerald Celente, William Kaye, Dr. Paul Craig Roberts, Chris Powell, Michael Pento, Eric Sprott, Andrew Maguire, Grant Williams, Bill Fleckenstein and Egon von Greyerz are available now. Also, other recent KWN interviews include Marc Faber and Felix Zulauf to listen CLICKING HERE.

Eric King

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rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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