Maguire:  “If we see a pit close above that (50-day moving average) we can expect to see gold shorts get very nervous indeed (note that gold went higher after-hours on short covering).  Now, each attempt (to take it below that level) was met with extremely large physical buying....

Continue reading the Andrew Maguire/Eric Sprott interview below...


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“Some of this (large demand for physical gold) we are seeing ramp-up, and it’s since China downgraded the US dollar.  So, I think this is really a game-changer in itself because normally these kind of defenses have gained traction.  They simply haven’t (this time).  Each attempt has been met with huge buying.

Physical demand for gold is not a US-centric factor -- it’s a global factor and it’s increasing exponentially.  Eastern central banks and the sovereigns, they are now buyers of very, very large size.  China is openly dumping dollars for anything tangible, including gold and silver.

Now, the Indians have traditionally been the largest buyers of bullion, as well as the largest consumers.  Relying on this historical advantage, and by being patient and not chasing price, they always had the luxury, and were a major factor in calling bottoms within the physical market because they would sit back and wait for the price to come down.

However, China has recently taken the lead from them as the largest consumer of physical gold and silver.  And due to the accelerating consumer, sovereign, and central bank demand, it’s rapidly consolidating that position, and it’s actually front-running the Indians, who are waiting for this historical price dip.  That’s why we are not seeing it (the dip).  

They (the Indians) are being increasingly front-run.  We have watched this factor developing for over 3 years now.  It’s been frustrating the bullion dealers in India, and it’s forcing them to reluctantly step in and accept bullion at much, much higher prices to fulfill the always present consumer appetite.

We saw evidence of $100 premiums last week that was reported by Reuters.  This week, demand for silver has been absolutely huge.  Shanghai silver premiums have been as high as 64 cents above December futures.  Think about that -- that is an incredible amount.

We are talking about thousands of dollars above the equivalent price of a silver futures contract.  That’s telling us something.  It’s telling us that the likes of the LBMA and bullion banks, they don’t want you to see this.  What it’s suggesting is tightness of physical supply, and (also) that arbitragers are raiding SLV inventory.”

Eric King:  “Andrew, I know if you check your Wikipedia page it actually refers to the New York Post saying that you worked at Goldman Sachs.  I understand that’s an error.  They try to do a great job at the Post, but there is a mistake in there, and it’s right on the Wikipedia page.  What’s sad to me is that this individual tried to run with that and use it to discredit you, the fact that someone else made an error.”

Maguire:  “Members of the public will know, I’ve brought Jeffrey Christian’s integrity into question on numerous occasions.  And it’s no more than an attempt to discredit my work exposing the unallocated bullion banking system for which he has a vested interest, and is (desperately) trying to defend. 

Now, in bringing this information to the public, what I’m doing is exposing the imminent blowup of the entire LBMA unallocated bullion banking system in its entirety.  He’s just a small pawn in this, but I suspect my recent work showing China competing for this traditional bullion banking business is bringing this LBMA default even closer.

Obviously I am going to be dealing with this in more detail next week, but there was no mention of my over 35 years of banking history -- as I said, I’ll put this farce to bed next week.  So what if I have other business interests aside from trading?  No company I’ve ever been associated with has ever gone bankrupt. 

I think this is all being done to distract from the fact that the LBMA paper Ponzi scheme system is collapsing, and mainly because I continue expose that fact in great detail.  Regardless, I will continue to soldier on, and these attempts at character assassination will not stop or intimidate me.” 

Billionaire Eric Sprott then joined the interview:

Eric King:  “Eric, you’ve had a chance to see what’s unfolded here with Andrew (Maguire), and I just wanted to get your take on this.”

Sprott:  “Obviously I believe everything that Andrew has said, including the information that he had given to the SEC when they didn’t follow-up on it.  I heard him speak in London in 2011, and I believe everything he has done is absolutely correct.

When he gives interviews with you, and he tells you about the tonnage that moves around, sure enough you see it -- then the GOFO rate goes negative.  Obviously there is a huge shortage of gold, which everyone is trying to cover up.  So I believe totally in what Andrew says, and I think he’s been a great spokesperson for the gold community.

My whole thesis is that the (Western) central banks have very little, if any gold left.  Anything that various experts say that makes people realize that this is the case, and Andrew has been very outspoken about it, as I’ve been outspoken about it, it’s not accepted very well because it would truly mean the death of fiat currencies.  This is what most of the people you interview tend to suggest is going to happen, and I totally concur with that.

So, I can see why they try to discredit everyone (who is exposing that fact).  I’ve been in this bull market for 13 years, and probably for the whole 13 years everyone (in the mainstream media) was suggesting that gold was a non-essential asset. 

But its need is becoming more and more apparent all the time to many people in the world.  As I’ve said, I think demand for gold is way beyond supply here, and the central banks have been supplying that gold and suppressing it, and they don’t want their scam exposed, but that’s what we are here to do (Maguire and I).”

IMPORTANT - The Andrew Maguire/Eric Sprott audio interview is incredibly powerful and it covers the information above in much greater detail.  The KWN audio interview with Sprott and Maguire is available now and you can listen to it by CLICKING HERE.

IMPORTANT - Due to recent events, KWN will be releasing interviews all day today.

© 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.

The audio interviews with Dr. Paul Craig Roberts, Andrew Maguire, Michael Pento, Eric Sprott, Grant Williams, Rob Arnott, Art Cashin, Bill Fleckenstein, David Stockman, Robin Griffiths, Jim Grant and William Kaye are available now. Other recent KWN interviews include Marc Faber and Felix Zulauf to listen CLICKING HERE.

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