Eric King:  “Bill, you spoke on KWN last time about gold eventually seeing the greatest short squeeze in history.  How has this takedown in gold and the corresponding physical offtake affected your thoughts on how this squeeze will unfold going forward?”

Kaye: “Well, as I said earlier, these guys are evil, but they are not stupid.  There is a real possibility that, despite the fact there was a reasonable gambit that they could succeed in shaking confidence, and I think that certainly was one of the key motivations here over the last week, (central planners were thinking) ‘Let’s destroy the psychology that accompanies a 12-year bull market.  Let’s see what we can do to destroy that psychology, and maybe we can extend the regime that we want for a bit longer than would otherwise be the case.’ 

That’s an interesting gambit, and I have to say I could see why reasonably bright people would think that could work, and there have been cases in history where it has worked.  But it’s not working....

Continue reading the William Kaye interview below...


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“In fact, what is happening is that while the psychology of certain hedge funds and traders may have been affected, and have mark-to-market losses who were long, the general public is responding in a way that they (central planners) are probably not very happy with.

They are actually responding by not panicking, but they are responding quite rationally by buying more of something that is considerably cheaper today than it was a week ago.  Now, this I suspect they didn’t count on, and I think they are probably not happy about it.

If this continues, in other words we continue to see a sustained avalanche of buying, what’s going to occur is we actually are going to have shortages.  I sit here in Hong Kong and we are not seeing evidence yet of shortages, but we already had pretty good inventories out here.  I am told, anecdotally, shortages (of gold) are occurring elsewhere in the world.  Now, if we do develop widespread shortages, their bluff is called. 

You simply can’t have, in a market as deep and as important as gold, a sustained bifurcated market, where the paper price is let’s say $1,350 or whatever it is at the time, and yet people are paying 20% premiums to own physical.  That just belies the lie that they are trying to create, and it destroys their agenda.”

The information above was part II of a two part written interview series that has now been released with the outspoken hedge fund manager from Hong Kong.  Kaye, who roughly 25 years ago worked for Goldman Sachs in mergers and acquisitions, discusses the recent takedown in gold and silver, physical demand, and the desperate situation Western central planners face going forward.  The incredible audio interview with William Kaye is available now and you can listen to it 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 audio interviews with William Kaye, Rick Rule, Nigel Farage, Gerald Celente, Dr. Paul Craig Roberts, Andrew Maguire, John Embry, Art Cashin, John Mauldin and Egon von Greyerz are available now.  Also, be sure to hear the other recent KWN interviews which include Eric Sprott, Marc Faber and Felix Zulauf by CLICKING HERE.

Eric King

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© 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.

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