Today one of the wealthiest, street-smart professionals in the markets, who is also business partners with billionaire Eric Sprott, told King World News that, yes, the war in gold is continuing to rage but gold is now winning the war.
Eric King: “The gold market has held up incredibly well (recently). We’ve had the U.S. Dollar Index go from the low 80s to a bit above par. Now it’s pulled back just a bit, but during that whole time frame the anticipated smash on gold to $900 or $1,000 never materialized, and now we’re back to $1,200.”
Rick Rule: “Well, you know, Eric, this discussion marks us as Americans because gold is in a bull market all around the world in every currency except the United States dollar and has been for 14-months….
Continue reading the Rick Rule interview below…
“If you were a gold-holder in euros, yen, rupees, rubles, or pesos, you’ve done very well. It’s only being a gold-holder in dollars that’s been problematic. And as I said before, gold doesn’t need to win the war against the dollar, it just needs to lose the war less badly, and my suspicion is that’s beginning to be the case.
Physical Demand For Gold Continues Very Strong
As you point out, gold has done fairly well in the paper markets and has done quite well in the physical markets. Physical demand for gold continues very strong. I see the gold market being in very, very good shape. One of the things that mitigated against gold 5-years ago was the was the simple fact that the holding costs of gold were very high. You could buy a U.S. Treasury and get paid 5 percent.
Outlook For Gold Is Excellent
You could argue then that owning gold cost you 5 percent a year because that was your foregone interest rate. But the with the U.S. 10-Year Treasury rate down around 1.7 percent, particularly in a currency that’s depreciating faster than that, your holding costs in gold are very, very low, at the same time that the attractiveness of competing interests is low. So I feel pretty good about the (outlook for) gold and silver prices, even without a collapse in the U.S. dollar.” KWN has now released the incredible audio interview with Rick Rule where he discusses the warn in the gold and silver markets, what is happening in the crude oil market as well as what suprises to expect in 2015 and much more. You can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Andrew Maguire – Letter Exposes HSBC Vault Closures As War In Gold Continues To Rage CLICK HERE.
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The audio interviews with Dr. Paul Craig Roberts, Bill Fleckenstein, Dr. Philippa Malmgren, Egon von Greyerz, Eric Sprott, Robert Arnott, Gerald Celente, Michael Pento, David Stockman, Marc Faber, Felix Zulauf, Andrew Maguire, John Mauldin, Lord Christopher Monckton, John Embry and Rick Santelli are available now. Other recent KWN interviews include Jim Grant — to listen CLICK HERE.