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Sunday, April 10, 2011

Weekly King World News Interviews

This week King World News interviews Eric Sprott, Dr. Marc Faber, John Embry & John Hathaway.  The focus of the interviews were heavily around precious metals and rightfully so after the action we have seen in the precious metals market this past week.  Other topics range from dollar devaulation, money printing and impacts on the standard of living.

Eric Sprott - Discusses Gold and Silver, saying that silver demand is outweighing the purchase of Gold currently.  Eric says talks about how much of a tough time he had getting 15 million ounces of silver and indicating the silver market is pretty tight currently.  Eric believes Silver will perform better than Gold currently.  Eric talks about how Gold is very managed right now by the government as they don't want to see Gold go to high, therefore it gets suppressed to keep the price from rising$100 in a day.

Dr. Marc Faber - Discusses the amount of debt we have in the U.S. and that the amount they want to cut from the budget is too little.  The big categories likes Social Security, Military and Medicaid will be too hard to cut.  He believes that Gold shares are way under valued here, but is due for a correction sometime soon.  Dr. Faber discusses the loss of strength in the dollar and how people are genuinely concerned about the loss of purchasing power in the dollar.  Dr. Faber makes the point that people are slowly coming to the realization that Gold and Silver are not necessarily a commodity as much as it is a real currency, which is causing increased demand.  Dr. Faber thinks the living standard in the U.S. is already bad, but is going to get worse.  A lot more good information in this interview, worth a listen.


John Embry - Discusses Gold and Silver, how the price should be much higher.  He points out that if it wasn't for the paper market the real price would be higher.  He says that Silver Eagles on Ebay are going for 49.00 currently when the price is 40.00 and that could be the real price of Silver currently (I verified 2011 Silver Eagles going for 49.00).  John makes the point that to recover the U.S. Debt problem you would have to raise taxes so high and lower spending that the economy would just crater totally making the issue mute.  John discusses how Bill Gross brings up that the real debt including unfunded liabilities is $75 trillion dollars which would be 500% of GDP and is in horrible financial condition.  John talks about more valuable information as it pertains to Gold that is very worth listening to. 

John Hathaway- Discusses how Gold surged Friday with no significant news, which meant that it was a meaningful move.  John points out that hedge funds that are shorting the Gold stocks are going to get roasted as Gold continues to rise higher.  John has a hard time seeing the austerity that would be required to cut $5 trillion dollars out the debt over a number of years.  John sees risk of interest rates rising causing interest on debt to be unmanageable. 

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