Ben Davies, the CEO of Hinde Capital, claimed that gold will break above $2,000 within the next four months as many individuals are beginning to realize that gold is more of a currency that many are resorting to during this financial turmoil.
July 14, 2011
KING WORLD NEWS
With gold closing in on $1,600 and silver attacking the $40 area, today King World News interviewed Ben Davies, CEO of Hinde Capital. When asked about the breakout to new highs occurring in summer Davies stated, “This has the smell of 1998 when I was trading US government bonds and everyone was away on holiday and problems were beginning to brew. Stock markets were beginning to get violent in reaction to Russia’s problems and it all kicked off in the summer months and people were being called back to their desks.
I just have that same kind of feeling now. This is not one I want to fight, the market is a little bit rich now in the short-term, but this could be the baby that takes us over the course of the next four months to that very tantalizing level above $2,000. I really think this is the move.”
“People are really beginning to realize that it (gold) is the currency of first resort. As a prudent risk manager I’m always looking for the sucker punch, but I just don’t see it here. I think that Ben Bernanke has come out again and tacitly said that QE3 or some change of policy along those lines is definitely in the cards. I think deep down we’ve all known that would be the case.
The events in Europe have just been unfolding like a nightmare and policy-makers have realized that you cannot have a banking system or a financial system that is predicated on lending based off of a risk provision of zero for sovereign debt. Clearly that sovereign debt, as we are finding out with the periphery debt, isn’t worth the paper it’s written on.
This has completely undermined fractional reserve banking that’s been with us for nearly a hundred years, it’s been found completely wanting. No wonder politicians are going to the edge before making serious policy decisions on resolutions.
I think we are going to see in Europe as I’ve maintained from the start, there will be a default. We already have a default in process, what remains to be seen is, is it going to be disorderly? This is all highly conducive for gold.”
When asked if he was signaling that the gold market was ready for an explosion Davies said, “I think there’s a really high chance, this is the year that you do not want to fight the gold market. This is a trend that you just have to bite the bullet and be invested and go with it, I feel very strongly about that.
Various liquidity is going to be coming from all corners of the world. At no time has gold pulled back throughout any of this credit tightening process, the market is going higher. We are in my opinion going to see a $2,000 handle this year.”
In this interview Ben discusses a coming gold explosion and where silver is headed along with the mining shares. The KWN audio interview with Ben Davies will be available shortly and you can listen to it by CLICKING HERE.
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