$500 Silver & The Real Reason Gold Caught Fire Yesterday

Today Egon von Greyerz sent King World News a tremendous piece where he discusses the silver price eventually eclipsing a stunning $500, where gold is headed, and why the gold market caught fire yesterday.  Below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, wrote in this KWN exclusive piece.

On Sunday it was reported that the JP Morgan Gold vault in Broad Street had caught fire.  Let me categorically state that even the world's best pyromaniac would most likely fail burning  down a Gold vault.  And let me explain why it is virtually impossible.

“Gold vaults are constructed not to burn.  Virtually all Gold vaults are made of reinforced concrete and other materials that are non-combustible.  And the content of a Gold Vault - Gold and other precious metals - are obviously not combustible.
All well-built Gold vaults are ground supported and built both on and of material that does not burn.  All high-end Gold vaults also have fire extinguishers.  But these are really superfluous since there is not enough perishable material in a Gold vault for a fire to spread.
Matterhorn Asset Management / GoldSwitzerland currently uses only vaults which are located under ground or inside a mountain.  These type of vaults are normally much safer than vaults above ground in warehouse buildings.  Vaults deep in the mountain are the safest in the world.
Yesterday the Gold market was on fire.  Gold did what it was supposed to do.  Several technical indicators were forecasting that gold would start its resumption of the secular bull market yesterday.  And this happened right on cue with a $40 + rise.  But that is of course only the beginning and we will see gold on its way to new highs with a more rapid rise starting in the autumn.  But new highs is just the beginning and my long standing target of $10,000+ is still as valid as ever.  With real hyperinflation, we will probably need to add a few zeros.