Kaye:  “As you and I are talking now, we’re a little bit below $1,250 on gold which is ridiculously low.  On the numbers we are looking at that would mean that roughly half of the production of the mining community of the world is unprofitable, which is stunning when you think about it.

What is going on is unprecedented....

Continue reading the William Kaye interview below...


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“It’s unsustainable, and like anything that is unsustainable it won’t be sustained.  So this is a great opportunity for people who do have an interest in possibly adding to or initiating new positions in gold or precious metals.  We are at levels that I think are extremely attractive, Eric.”

Eric King:  “Bill, what about this chart that you sent me going over the various entities out there that hold gold for retail and institutional investors?  Can you talk about that?”

Kaye:  “Yes, I’m happy to.  Pick up the Wall Street Journal, the Financial Times, watch CNBC if you want to have your brain damaged, you’ll get the same narrative (regarding gold). 

And it’s a scary narrative, which is that people are panicked -- there is a bear market in gold.  And they (the mainstream media) never make a distinction between the paper market in gold and the physical bullion market.  That is a very important distinction for your listeners (and readers) to make.

But the narrative is that people are panicked, and because they are panicked they are selling into the market to whoever will buy.  And this is why the gold inventories, the Spyder Gold Trust and the other major exchange traded funds (gold holdings) have been so rapidly reduced.

The problem with that narrative is it’s not true ... Those exchange-traded funds are losing and are continuing to lose a lot of gold because it’s a manipulation.  The only people who can get access to the gold (at the exchange-traded funds) are the bullion banks themselves, and that’s exactly what they are doing.

And that gold is being transited from places like London and New York to places like Hong Kong and Shanghai.  This is what’s happening.  There is this major migration of gold from the West to the East.  And it’s ongoing, but we’re getting late in the game.

The Spyder Gold Trust, which is by far the largest ETF in the world and has provided the majority of the gold that has been used to execute the scam that is ongoing by the bullion banks, these guys have lost 30% of their inventory.  They have lost roughly 13 million ounces year-to-date.

Now how much has your friend Eric Sprott lost?  Because he has a similar class of ownership.  As I just said, the Spyder Gold Trust has lost 30% of the gold that they had at the beginning of the year, and yet Eric Sprott has lost virtually nothing.  He has lost a total of one bar.  Now, enquiring minds would ask themselves, if we have a bear market in physical gold, why have they redeemed 30% of the gold that exists in the Spyder GLD, but they’ve redeemed nothing in Eric Sprott’s fund (see chart below)?

The answer is obvious:  The major bullion banks can control and do manipulate what goes on in terms of Spyder GLD and the other trusts that have the same structure which only they can access.  Whereas the closed-end funds that exist in Canada, Europe, and the Sprott fund which is run by a reputable guy who is regularly on your program, Eric Sprott, the people who can redeem (from those funds) are not the bullion banks, but the actual owners of the funds.  

Well, guess what?  He (Eric Sprott) has received only one notification in this entire paper bear market.  One notification this entire year, and that was for one bar.  According to Eric, and I may have heard it on your program, he called the guy up to find out, ‘Why did you ask for one bar?’  And the guy said, ‘I wanted to test the system.’  As far as I’m concerned that tells me everything anyone should want to know.”

King World News note:  The chart below shows a remarkable zero percent loss of physical gold from both the Central Fund of Canada and Eric Sprott’s Gold Trust during the entire vicious decline in gold.  In contrast, you can also see the extraordinary declines in physical gold holdings in the global ETFs.

©King World News / William Kaye

IMPORTANT - This is part II of a series of remarkable interviews with William Kaye that will be released today.  Kaye discusses everything from gold, to the end game, and it will have King World News listeners on the edge of their seats.  The written portion above is just a small part of this extraordinary interview.  The KWN audio with William Kay 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 Marc Faber, Stephen Leeb, Dr. Benn Steil, Eric Sprott, Andrew Maguire, John Hathaway, Dr. Paul Craig Roberts, MEP Nigel Farage, Rob Arnott, Egon von Greyerz and Art Cashin are available now.  Also, other outstanding recent KWN interviews include Jim Grant and Felix Zulauf by CLICKING HERE.

Eric King

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