http://www.bdlive.co.za/ [South Africa]
GOLD bulls have had it rough this year but many would have found solace in the Precious Metals Round Table web-based conference call and presentation held recently by Sprott Asset Management.
About 6,300 participants logged on to listen to speakers like investment “guru” Marc Faber — publisher of the Gloom, Boom and Doom Report — and Toronto-based Sprott chief investment strategist John Embry, a regular keynote speaker at gold conferences.
The bottom line? Hang on to your physical gold and gold shares because the point is fast approaching when the gold price is going to explode.
That prediction is, of course, completely at odds with what has actually happened in the gold market this year, where the price has plunged from about $1,700oz to $1,200oz, before recovering marginally to just above $1,300oz.
Predictions from institutions such as Natixis are far more restrained. The recently published Natixis Metals Review predicts gold dropping back to lows around $1,170oz over the coming six months to a year and averaging $1,200oz for next year.
By contrast, Mr Faber says “the Fed (US Federal Reserve) is well on the way to creating a situation where the sh.. will hit the fan”.
Mr Embry says: “We are in the early stages of a classic monetary debasement. We are seeing more and more instances of where the physical gold does not seem to be available. The paper gold market will be seen for what it is, which is one of the greatest Ponzi schemes in history.
“The paper market has been controlled aggressively by the central banks, the BIS (Bank for International Settlements) and the bullion banks. Investors have been presented with an unbelievable opportunity,” he says.
“Demand for gold will explode at a time when the supply is not available and the price will reflect this dramatically.”
The conviction held by all the speakers is that the gold price has been forced down through blatant manipulation of the gold investment paper market and that much of the gold that is supposedly held by various institutions such as the Fed is no longer available.
That is because the metal has been leased out to bullion banks, which have, in turn, sold it to investors and that bullion is not readily recoverable.
The allegation is that various banks are acting in concert to drive down the gold price so they can buy bullion back without sending the price through the roof.
For the rest of this column, click here: http://www.bdlive.co.za/markets/2013/10/07/gold-price-is-bound-to-go-through-the-roof