(May 11th, 2011)
- good time to short bonds
- the US economy may look like it’s recovering but the cost in new money is staggering
- inflation more due to currency volatility, not necessarily the US dollar going down but the Euro moving up and down. This currency volatility is the underlying reason for golds volatility
- debt is the underlying reason for golds appreciation to price
- he comments the bond uptrend has been broken and indicating a 325 basis point fall
- bonds are indicating the psychology supportive of gold is returning to the marketplace.
- due to the rate of recovery in Gold and silver we’re no where near a top
- next price he’s looking for in gold is $1764
- WRT gold shares, the price lag isn’t unusual, the hedge funds shorting the miners are the ostrich’s with their heads in the sand, the miners are going to make much higher earnings with the current prices of gold and silver. The hedge funds will not be able to maintain the price suppression.
- like in the 70′s there will be select juniors that will make similar jumps from pennies/shares to 10′s or $100′s of dollars/share.
- $5000/oz gold, that Armstrong and others are calling for isn’t unreasonable anymore. QE3isn’t needed to put gold over $5000
- he believes the precious metals mania will outdo the early 80′s but this time it won’t crash but will re-enter the markets as a currency
- the temporary US dollar increase was due toma fall in the euro not a rise in the dollar
- says classic traders like Burt and Jesse would pill on in the middle not at the bottom, would need to see a bit more momentum
- This market isn’t being controlled by millionaires but by giants like central banks, billionaires and trillionaires.
See full interview at kingworldnews here.