KING WORLD NEWS - BLOG
BROADCAST../../../../Broadcast/Broadcast.html../../../../Broadcast/Broadcast.htmlshapeimage_6_link_0
HOME../../../../King_World_News.html../../../../King_World_News.htmlshapeimage_13_link_0
BUSINESS../../../../Business.html../../../../Business.htmlshapeimage_14_link_0
GREEN../../../../Green.html../../../../Green.htmlshapeimage_15_link_0
HEALTH../../../../Health_1.html../../../../Health_1.htmlshapeimage_16_link_0
ENERGY../../../../Energy.html../../../../Energy.htmlshapeimage_17_link_0
SPORTS../../../../Sports.html../../../../Sports.htmlshapeimage_18_link_0
GOLD+../../../../Gold.html../../../../Gold.htmlshapeimage_21_link_0
 
 

Eric King:  “John, you made this call for a short squeeze in gold to unfold.  Are we in the early stages of that squeeze now?”


Hathaway:  “It looks like it.  Of course only time will tell, but it looks like what you had were the high-frequency traders and the algorithmic models trying to push gold down below the mid-$1,230 level overnight.  Obviously that attempted smash failed....


Continue reading the John Hathaway interview below...  




Advertisement


To hear which company is the highest grade silver producer in the world

located in one of the most mining friendly countries and

offers investors massive blue sky click on the logo:






“So I think this strong rally we’ve had is definitely short covering.  On a very short-term basis it looks like we are ready for a move higher. 


But you can just throw in the trash the headlines coming out of the mainstream media regarding India.  It has much more to do with the fact that the shorts could not break the gold market overnight, and now the shorts are covering.  Let’s see how far that takes this move.


The fact that the stock market was broadly lower gave additional fuel to yesterday’s rally.  Also, the less-than-robust news coming out of China helped as well.  We’ll just take each day as it comes.”


Eric King:  “John, obviously you know James Turk commented on your interview earlier today, but I wanted to ask you about something Turk said in his KWN interview.  He said there are two ways you get a short squeeze:  One is the price moving against the shorts.  But on top of that there is a short squeeze which can take place in the metal itself, and that can greatly exacerbate this type of move.”


Hathaway:  “I think that’s a good point that James brought up there.  My guess is that most of this is just paper shorts covering, and some of them are taking losses.  I don’t think we’ve seen the scramble for physical yet.  That scramble will take a little more time to unfold.


But if this short-covering phase gains any momentum, we’re going to hear a lot more talk about the fact that paper gold is not the same thing as physical gold.  For that to kick in, we need a trigger on the macro side -- additional weakness in stocks and worry about systemic risks.  I could give you a list of 10 things that might trigger it.


So it’s a two-step process, and what we are seeing right now is just part one with the paper shorts covering.  When this rally really gets moving it’s going to be people saying, ‘I’ve just got to have the physical gold.  I just don’t trust the Comex or anything with counterparty risks associated with bullion banks’ and that kind of thing.”


Eric King:  “Is the gold market setting up for a historic advance, where it explodes higher?”


Hathaway:  “Yes.  I think we are still in the early stages.  For that to happen you need to see the oceans of money on the sidelines begin to rush back into the gold market.  Gold has been abandoned by most people in the West.  A serious correction in equities would trigger an explosive upside move in gold.  But gold could break out at any time and really catch people off-guard, and I think that will ultimately be the case.  The bottom line is that if I am short gold here, I am getting real nervous.”


IMPORTANT - Due to the recent price action, KWN will be releasing interviews all day today.


IMPORTANT - Powerful entities do not want people to have access to the news that KWN provides.  As a result we have had a constant interference with the news feed on our home page.  Simply reload the home page until you receive the news feed, or go straight into the KWN blog.  You may need to clear your cache in order to see the latest news story.  KWN readers can simply google “how to clear cache” if they are unfamiliar with how to do this.


© 2014 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 Gerald Celente, Michael Pento, Eric Sprott, Andrew Maguire, Rob Arnott, William Kaye, David Stockman, Rick Rule, John Mauldin, Bill Fleckenstein, Egon von Greyerz, Art Cashin and Dr. Marc Faber are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf -- to listen CLICK HERE.


Eric King

KingWorldNews.com

To return to BLOG click here.

 
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.html
KWN BLOGhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlshapeimage_24_link_0shapeimage_24_link_1

© 2014 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.

Subscribe to RSS
CLICK HEREhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlshapeimage_27_link_0shapeimage_27_link_1
KWN Blog
Archiveshttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlshapeimage_28_link_0shapeimage_28_link_1
http://www.kingworldnews.com/kingworldnews/Broadcast/Broadcast.html