Mining

In this interview, Max Keiser and Egon von Greyerz discuss gold and several hot topics that will have major influence on the world economy in coming years.

In recent weeks we have been wary that, despite highly favorable COTs and Hedgers charts and rotten sentiment indicators etc, a general asset liquidation might drag the PM sector even further down, but Thursday’s extraordinarily positive action by the sector serves to allay those fears.

We are now seeing an overwhelming body of evidence coming together to suggest that gold and silver have hit bottom, and that even if they haven't, the bottom is very close and downside risk is very limited.

The shortage is here. It is a fact. In the weeks to come, you should find many articles to read about the growing delays in delivery of silver. There should be real problems for delivery at the end of September and the beginning of October.

The silver price is still under $ 16 today, but it won’t last long at that level. With an open interest around 1 billion ounces on the Comex, there will be a huge SHORT-SQUEEZE before the end of the year. Remember, the rule for silver as for gold : if you don’t hold it, you don’t own it.

Gold trackers cannot be put on the same level as physical gold, which remains the only gold asset that serves as real wealth insurance.

The physical fundamentals are stronger than ever for gold. Russia and China continue to be huge buyers. China bans export of its 450 tons per year of physical production.

The Bank of Russia has more than doubled the pace of gold purchases, bringing the share of bullion in its international reserves to the highest of Putin’s 17 years in power, according to World Gold Council data.

The world may have already produced the most gold in a year it ever will, according to the chairman of the World Gold Council.

The gold rally that began on Dec. 15, 2016, is poised to continue despite the trauma of the flash crash. The crash represents a gift to investors. We now have a better entry point for what will still be much higher gold prices later this year.