You know my view that gold and silver will go up because of unlimited money printing. That’s guaranteed to happen. But other factors that could put even more (upward) pressure on gold in the short-term are the enormous physical shortages.
Governments and central banks have, for decades, leased or sold their gold to the bullion banks. So they are very likely to own very little of the 23,000 tons that Western central banks are said to hold.
But now bullion banks also have a problem: They tried to replenish their (physical gold) coffers during the massive manipulative selling that we’ve seen over the last few months in the paper market. Although they took the price down, most of the physical (gold) that was released by selling from ETFs and hedge funds was absorbed by Asia.
So the bullion banks are still massively short of physical gold. All of these physical shortage problems are likely to put enormous upward pressure on gold in coming months. And remember that this factor is in addition to the destruction of paper money we will see which will also put upward pressure on gold.
It’s important for investors to understand, and especially holders of gold and silver, that there are now several different factors which will propel gold and silver to much higher levels. As you know, I’ve said that within the next year we will see levels that will be a lot higher than the $1,900 mark we saw in 2011.
I see shortages everywhere, and I see real problems in the market with the bullion banks still under pressure. I am hearing that they (bullion banks) are under real pressure, and this is why we will see incredible upward moves (for gold and silver) starting in September.
Original source: Kingworldnews
Reproduction, in whole or in part, is authorized as long as it includes a link back to the original source.
Egon Von Greyerz Goldbroker.com Board Member - Founder of MAM
Founder and Managing Partner of Matterhorn Asset Management AG (MAM) and GoldSwitzerland, Egon Von Greyerz joined the board of Goldbroker.com in 2012. Egon von Greyerz started his working life in Geneva as a banker and thereafter spent 17 years as Finance Director and Executive Vice-Chairman of Dixons Group Plc. Since the 1990s EvG has been actively involved with financial investment activities including Mergers and Acquisitions and Asset allocation consultancy for private family funds. This led to the creation of MAM in 1998, an asset management company based on wealth preservation principles. EvG makes regular media appearances (CNBC, BBC...) and speaks at investment conferences around the world. EvG forecasted the current present problems in the world economy well over 10 years ago. In 2002 when gold was $300 per ounce, MAM recommended to its investors to put 50% of their investment assets into physical gold stored outside the banking system.