“This Will Trigger A Tidal Wave Of Short Covering In Gold”
With Ben Bernanke ready to deliver his semi-annual monetary policy report to Congress starting today, a legend in the business warned King World News about what is going to “trigger a tidal wave of short covering in gold.” Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also spoke with KWN about the massive global demand for both gold and silver and what he is directly experiencing in the marketplace.
Barron: “Right now I am focused on the gold price. We are up over $100 off the lows on gold and silver has broken through $20. All of this is thanks to Bernanke, who shot himself in the foot yet again with talk about tapering QE again. This trashed the stock market briefly and had spectacularly chaotic consequences in the bond market as well.
Right
now the gold price is like a submerged beach ball. At some point the
shorts will lose control and the price of gold will come shooting back
up to the $1,600 level. There is so much aggressive buying of gold
taking place around the world right now that it is almost mind-boggling.
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With Ben Bernanke ready to deliver his semi-annual monetary policy report to Congress starting today, a legend in the business warned King World News about what is going to “trigger a tidal wave of short covering in gold.” Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also spoke with KWN about the massive global demand for both gold and silver and what he is directly experiencing in the marketplace.
Barron: “Right now I am focused on the gold price. We are up over $100 off the lows on gold and silver has broken through $20. All of this is thanks to Bernanke, who shot himself in the foot yet again with talk about tapering QE again. This trashed the stock market briefly and had spectacularly chaotic consequences in the bond market as well.
“Anyway,
the net effect was this caused a tremendous amount of disruption in key
markets and I think he was chastised for that. So he came out with a
speech and it was a complete turnaround from the FOMC minutes. The 180
degree turn was, ‘all systems go, and keep the printing presses going.’
The
action in the bond market was frightening to some of the participants
because it was essentially crashing and interest rates were spiking.
This action was incredibly violent. All of this type of trading was
much more threatening to the Fed and to the economy than the gold or
silver prices. America is too weak economically to see interest rates
spike, so they will have to make the bond market priority number one,
and if that means gold and silver rise, to hell with it, they will let
them rise.
But
if the gold price gets firmly above $1,310, this will trigger a tidal
wave of short covering in gold. Gold will immediately surge into the
$1,350 area and maybe even as high as $1,400, very quickly, on that wave
of panicked short covering which will take place. This short covering
will really send the price of gold soaring if it gets momentum behind
it, and KWN readers need to be aware of this.
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