November 14 (King World News) - “Unprecedented & Historic Events Shock The Financial World”

Right now there are some absolutely historic events taking place in the financial world.  KWN will expose what is happening for our global readers, and also include some comments from the legendary Richard Russell at the end of this piece.....

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Sotheby’s just had a 59.60-carat pink diamond sell for an all-time auction record of a staggering $83 million.  The previous record for a gemstone was held by Graff from several years ago, at $45.6 million.  So, the latest auction shattered the previous record.  This is a trend that has been continuing around the world, where the super-wealthy are exiting fiat money for hard assets such as art, diamonds, etc.

Speaking of art, yesterday an Andy Warhol painting sold for a breathtaking $105 million.  Again, this shattered the previous Warhol auction record of $71.7 million.  If you were impressed by that, then you should know the all-time record for the sale of any work of art took place two days ago at a jaw-dropping $142.4 million.

While the mainstream media says this is just the super-wealthy pushing their weight around in these markets in order to buy trophies, this is actually a much larger push by the wealthy to get out of fiat paper currencies and into hard assets.  This is very similar to what the Chinese are doing. 

As far as China, well, they continue to hoover up all of the world’s gold they can get their hands on, and this is taking place with bullish sentiment on gold plummeting to just 1% above the historic June 27th low.  If you are wondering about silver, the bullish sentiment in the silver market has now broken below the historic level of June 27th.  The important thing here for KWN readers around the world to understand is that China as well as the super-wealthy are continuing to exit fiat money for hard assets at an all-time record pace. 

What is the public doing while all of this is taking place?  Tragically, after nearly a 5-year run which has seen the Dow rise over 9,000 points off its historic 2009 lows, it appears that according to the mainstream media ‘mom and pops’ now feel it is time to enter the stock market.  Now let’s see what legendary Richard Russell had to say about the current state of affairs:

Richard Russell: The Dow crept up higher, moving ever closer to the melt-up that I’ve been predicting.  Yesterday’s Wall Street Journal carried a front-page story about retail buyers coming optimistically into the market again.  I expect the retail entrance to the market to reach flood tide buy-in sometime within the next year. 

At the same time, distribution levels are increasing providing evidence that institutions are leaving this market.  The latest count is six distribution days on the NASDAQ and four on the S&P 500.  Thus I believe we are approaching an historic period where funds travel from institutional hands to the retail public. 

The gold base continues to enlarge, and pessimism toward gold is comparable to that which you see at a bear market bottom.  In the meantime, bullion creeps imperceptibly higher.  China is clearly on a new path which will result in a bulging population and a pull-back on its imports. 

The big picture for the US is “under-inflation” and underemployment.  Neither suggests a taper in QE.  In the meantime, smart money is buying tangibles.  This can be seen in towering prices for art at recent auctions.”

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

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The audio interviews with John Hathaway, Bill Fleckenstein, James Turk, Andrew Maguire, William Kaye, Gerald Celente, Dr. Paul Craig Roberts, Eric Sprott, Grant Williams, Rob Arnott, David Stockman and Jim Grant are available now. Other recent KWN interviews include Marc Faber and Felix Zulauf to listen CLICKING HERE.

Eric King

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