Kaye:  “Right now we have a standoff between what are very large militaries with vast nuclear arsenals over Ukraine.  But the equity markets are either in incredible denial or rigged.  Central planners are very effective at using the derivatives market to create a false impression of reality....

Continue reading the William Kaye interview below...  


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“And obviously what the West would like to see is the appearance of a stronger economy.  Western central planners also want to create the impression of a failing Russian economy and a weak ruble.  This is a desperate attempt to weaken Putin’s hand.

I don’t think these attempts by the West to attack Russia and their economy will be that successful because there are not enough foreign holdings of rubles for that strategy to be overly effective.  And at the end of the day, Russia could always impose a series of capital controls.

So I don’t see any of those strategies working out that well for the West.  I also don’t see the strategy of continuing to encircle Russia as working over the long term.  Meanwhile, Ukrainian forces are attempting to violently put down the protestors in eastern Ukraine, who didn’t ask for this coup d’etat, nobody voted for it in the eastern part of Ukraine, it was imposed on them, and they don’t like it.

But if you were to read the propaganda coming out of the New York Times and the Western media, it appears to be the other way around.  I think the President of the United States even gave a speech saying that the U.S. was going to continue to support the duly elected government of Ukraine.  Well, there is no duly elected government in Ukraine, so what the hell is he talking about?

As well all know, this was a coup d’etat in which the United States invested $5 billion according to Victoria Nuland.  She boasted about spending $5 billion to destabilize Ukraine and impose hand-picked leaders, and we know they are hand-picked leaders because we have it on tape.

Russia leaked that tape and it has never been denied by the United States because it’s obviously authentic.  So those are the facts but don’t go to the Western mainstream media like the New York Times, Wall Street Journal, or the Financial Times if you are interested in facts because you won’t read any of that in any of these media, and I will allow people to draw their own conclusions as to why that is.” 

Kaye had this to say about the gold market:  “To make gold an asset of serious interest again to a range of investors, we have to get through the next big number which is $1,400.  That’s pretty important.  We talked about this a while back and I was skeptical at the time that we would get through $1,400 in the short term and we didn’t.  The defense of that number was extreme.

When gold was approaching $1,400 we weren’t seeing the type of tightness in the market that you would want to see in order to break that key level.  And then, after a reversal in which gold went below $1,280, we started to see real tightness in the gold market once again. 

So we started to see backwardation in gold, and we also saw GOFO rates which were negative.  In that situation people are holding on to their gold and not lending it into the system.  Every time they have taken the gold price to $1,280 or below we see the reemergence of those symptoms of tightness.

If we see increased geopolitical tensions and the reemergence of India fully coming back into the gold market, these are the types of things that can act as a catalyst to move gold through key resistance levels.  There have been clear signs of renewed Indian buying, which is interesting because you wouldn’t think that prior to a new government being installed, which is expected to be more gold friendly, that you would see mass buying.

I believe the renewed buying is from dealers who anticipate more gold demand and want to be in a position to fill it when a lot of these controls get relaxed and the tariffs come down.  So that could be one of the driving forces for the gold market.  And if we see that increased Indian demand along with robust Chinese demand and strong demand from Russia and eastern Europe, then the cartel could be put on their back foot.  We are not there yet but over the long term I anticipate far higher gold and silver prices than we see currently.” To be continued...

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