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Eric King:  “We obviously had another smash in gold and silver.  What are your thoughts here Pierre?”

Lassonde:  “Every year in June or early July is always the point of maximum stress for gold and silver.  This year is no exception.  When I look at gold in particular, if you go back 1974 to 1976 we saw a 47% retracement in gold.

If we were to see something like that today, gold would go slightly below $1,000.  Could it happen?  Yes, of course anything can happen, but I doubt it.  A 40% retracement is slightly below $1,200.  We’re almost there on gold already....

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“So my feeling is we are seeing the maximum stress right now.  I think $1,200, plus or minus $30 is where you are going to see the bottom in gold.”

Eric King:  “Pierre, what are you doing with your own money right now?  Are you buying?”

Lassonde:  “Yes.  Actually I started buying this week.  I think there are a number of gold equities that are absolute bargains.  The liquidity trap has forced a lot of funds to sell.  But money is still leaving the sector.  That’s one of the reasons you are seeing this amount of stress.

But I am absolutely 100% convinced that come September gold is going to be 20% to 30% higher than it is today and the stocks are going to be 50% higher.  So what am I doing?  Yes, now is the time to put money to work and that’s what I’m doing.”

Eric King:  “Pierre, what do you say to people here who are beaten up mentally?”

Lassonde:  “Look, we’re all beaten up.  My own net worth is down as well as everybody else.  So I feel it.  But one thing I can say absolutely for sure, now is not the time to sell because we are within 5% of the bottom, if that.  That’s my view.”

Lassonde also added:  “Has anything really changed?  Is Europe any better than it was six months ago?  Absolutely not.  China is a real issue and I did tell you less than a year ago that the one thing which could cause gold to go down was if we had a really bad hiccup in China.

As we’ve seen in the past three months, the Bank of China has been tightening the screws tighter and tighter on the banking system.  That’s a big part of why gold is down.  What they are trying to do is redirect the economy to internal consumption instead of just constantly exporting. 

That takes time, but at the end of the day the Chinese authorities cannot afford to have a recession in China.  They (Chinese leaders) are too afraid of what would happen.  So what did they do at the end of last week?  They came in with liquidity and they pushed liquidity into the system because they don’t want the system to go bankrupt.

The reality is that nothing has changed.  This is just a classic panic as people rush for the exits.  But the Fed is still printing money, Europe is still in a mess, Japan is also still printing money, so why would you change course if you are invested in gold and gold shares?”

IMPORTANT - The audio interview with John Hathaway is available now and you can listen 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 John Hathaway, Dr. Paul Craig Roberts, MEP Nigel Farage, Rob Arnott, Egon von Greyerz, Gerald Celente, Dr. Philippa Malmgren, Eric Sprott, Jim Grant and Art Cashin are available now.  Also, be sure to hear the other recent KWN interviews which include Marc Faber and Felix Zulauf by CLICKING HERE.

Eric King

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