Bill Haynes continues:

“As was the case last week, much more money went into gold than into silver.  When we’re seeing a lot of big orders, more money goes into gold simply because it’s easier for the buyers to handle.

Eric King:  “Bill, you said there was one huge order (at CMI this week).”....

Continue reading the Haynes/Norcini interview below...


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Haynes:  “Eric, it a $5 million first time buyer (of gold).  Now, I can say that he was acting on the advice of his financial advisor who has been buying from us since gold was about $500 ... We can’t let Friday’s (and this week’s) price action make us think that somehow the central planners are going to cause fiat money to come on top.

We know the metals have a track record of over 6,000 years.  They’ve been valued in all recorded civilizations.  As for paper, it’s a useful commodity, but when used as money the results have been disastrous.  What’s happening in the US, Europe and Japan is headline news with lots of money printing going on.  So, let’s talk about two small—but not tiny--South American countries that have exploded their money supplies:  Argentina and Venezuela.

In today’s Financial Times, there is an article about the Venezuelan government warning businesses not to raise prices.  The government has massively devalued its currency, the bolivar, and it now takes 22 bolivars on the free market to buy a single dollar, while the government proclaims that the official (and legal) exchange rate is 6.3 bolivars to the dollar. 

This means that importers needing dollars cannot get them because there are no sellers, except in the ‘black market.’  But, it is really the free market where two individuals come together and, without coercion, make an exchange.  Now, Venezuela’s problems are not limited to Venezuela.  Neighboring Columbia is concerned that Venezuelans will smuggle good across the border into Columbia to obtain higher prices for their goods.

Meanwhile, Argentina is suffering a 30% annual rate of inflation, and its Commerce Ministry mandated a two month freeze on the price of supermarket products to combat what the Commerce Ministry calls, ‘illegal price increases.’  It has set up a hotline so consumers can join the fight by reporting any supermarkets violating the price freeze.
As recently as 2010, Venezuela went through a devaluation, and Hugo Chavez expropriated supermarkets that we deemed to have raised prices excessively.  For the people of Venezuela and Argentina, this means lower standard of living and shortages.  These are the results of government intervention in the financial markets.

Eric, let me close with this.  You have a tremendous three-part interview with Felix Zulauf.  In the second interview, you raised the issue of calls for $30 to $100 trillion dollars to be printed to get the world’s economy kicked into in high gear.  You asked if the $30 to 100 $trillion dollar infusion was being done in stages?

Zulauf went on to say that the numbers were shocking, and he talked about the Swiss central bank buying equities with money created out of thin air.  I will say that yes, $30 to $100 trillion dollars will eventually be created.  I just don’t know over what time period.  I would guess over the next 8 to 12 years.”

Norcini also noted the hedge fund activity in both gold and silver: “Hedge funds are the market drivers of today, there’s no question about that.  Their (hedge funds) net long position in gold is the smallest net long position they have had since December of 2008.  We are talking over 4 years now.

That is how much we’ve lost speculative interest in the gold market.  I might add you are also seeing fresh shorting from that category as well ... It’s interesting because silver is holding out better than gold.  In an environment in which growth is the theme, silver is going to hold up much better than gold.

You still have speculators on the net-long side coming down.  There is a little bit of short selling that’s occurring, but you don’t see nearly the exodus out of the long side of the silver market like you do in gold.  Of course that’s reflected in the improved chart pattern that you see in silver when you compare it to gold.”

This was just a small portion of the type of critical information which is covered each week in the KWN Weekly Metals Wrap with Bill Haynes and Dan Norcini.  To hear a continuation of this conversation, you can listen to the entire interview by CLICKING HERE.

© 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 interviews with Egon von Greyerz, Felix Zulauf, John Hathaway, Gerald Celente and Eric Sprott are available now.  Also, be sure to listen to the other recent KWN interviews which included Art Cashin, Michael Pento, MEP Nigel Farage, Michael Belkin, James Dines, William Kaye, John Embry, Rick Rule by CLICKING HERE.

Eric King

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