Eric King: “Bill, your thoughts on this continued smash in gold and silver that we are seeing?”
Kaye: “It’s
more of the same, Eric, that we talked about last time. They choose
the thinnest sections of trading in gold, Asia time, for most of the
smash. Most of the price damage was done overnight in the United States
during Asian trading.
“As I talk to you now
we are now trading in the $1,220s, which is a new multi-year low. So
the bulk of the damage was done in two time periods: In Asian trading
and in equally thin Chicago (COMEX) trading, when most of the real
players have already gone home.
The
price damage is almost beyond belief at this point. Two years ago we
were above $1,900 on gold and rightfully so given all of the events that
were occurring and are still occurring. Now we are in the mid-$1,220s,
which given the policy response to what is an ongoing crisis, is
incomprehensible.
No one
can make any logical sense of what has taken place because the currency
wars that are fully underway everywhere in the world justify gold prices
that are not only higher than they were two years ago (above $1,900),
but they justify prices in our view that would clearly be above $2,000
and maybe even above $3,000.
Those
prices I am giving you are the prices gold should be trading at today.
Meaning they are not looking out on to the horizon because the money
printing that is going on is not going to stop tomorrow. In fact it’s
going to continue and if anything, in our view it will accelerate.
So the
only thing that can explain the price behavior in gold has to be a
concerted raid. What is of particular interest is that this
manipulation really has to be the Fed, or coordinated intervention with
the other central banks, including the ECB. The reason for this is
because it’s very clear, if you pay attention to Andrew Maguire on KWN,
that the bullion banks who were very short when this raid commenced in
mid-April, are now long, and some are very long.
So the
setup here is pretty fantastic. For people that are looking to add to
their positions, we are certainly at levels now that look absolutely
compelling, and levels that we may not revisit again in my lifetime.”
Kaye also added: “I
strongly believe this is being done to create even more outsized
profits for the bullion banks. We had a very controversial
recapitalization of the banks, similar to what occurred in the 1930s in
the United States, and most of the world at that time was on a gold
standard.
The
only way the banksters could get recapitalized during that era (of the
1930s) was by the re-pricing of gold itself. KWN readers have to
remember that gold was re-priced from $20.67 to $35, but that was only
after an executive order forced U.S. citizens to turn in all of their
gold to the nearest Federal Reserve branch. So the Federal Reserve
banks, which are owned by the big commercial banks, got recapitalized
through that mechanism.
A
similar thing is happening once again. First we had the overt bailouts
which was in plain sight in 2008 because the entire banking system was
bankrupt. So hundreds of billions of dollars was wasted on
recapitalizing these criminal institutions, these big banks.