With gold surging $50 and silver trading up over $1, today King World News interviewed one of the greats in the gold world, Keith Barron. Keith consults with major gold companies around the world as well as major brokerage houses and Keith is responsible for one of the largest gold discoveries in history. When asked where he sees gold headed Barron responded, “We’re seeing things right now on the political stage that we have never, ever seen before and I believe this is tremendously bullish for gold and for silver. I would say gold is going to blow through $2,300 to $2,500 by the middle of next year.”
When asked if the mania in gold this time around will mirror that of late 1979, early 1980 Barron responded, “Absolutely and there are more players, there is just not enough gold to go around right now. You never saw the participation of the Asian and Indian markets back in 1980, we’re seeing that now.
It’s a totally different world out there. You’ve got two currencies that are crashing (in terms of purchasing power) at the same time, the euro and the dollar. And for whatever reason here in Switzerland, the Swiss National Bank has chosen to de facto devalue the Swiss franc, so they are trying to make that (the Swiss franc) as unattractive as possible for the safe haven people.
So I think it (gold) has a long, long way to run, but we’re a long way from the manic phase. They talk on CNBC about gold being in a bubble, I mean I’ve heard this every year for the past eleven years, ever since I started watching that stupid station. If you had listened to bubble vision, you wouldn’t be participating in the gold market here or in the bull run. You would have missed out on some fantastic profits.
“People were actually paying folks for their place in line so they could get in earlier and buy gold because the price was shooting up all through the day.
You saw $50 movements back then and a $50 move back then was a lot of money. So I think we are only starting to really get going now because the general public is starting to get the message. We might see $2,000 gold faster than anyone thinks.”
Moving away from the coming mania, when he was asked about the secular low in gold Barron seemed to agree with GATA, “There was a lot of central bank selling, there was a lot of hedging going on, and because of the gold carry trade the price of gold was very depressed. The way it worked was countries would let banks like Goldman Sachs and Morgan Stanley and so on borrow their gold reserves. Those gold reserves would then be sold into the market thus depressing the price.”
