Ben Davies – Gold Shorts Are Now Exposed To a Price Spike
December 6, 2012
Today Ben Davies spoke with King World News about the shorts now being vulnerable to a price spike in gold. He also discussed surging Chinese demand and supply troubles. But first, here is what the rising star had to say about the action in gold: “I actually think we are in and around the lows now, and the market will continue to stabilize here. The other point would be that the fundamentals behind gold, in terms of mining supply, the cost of extraction, the grade degradation, this is a real issue.”
Ben Davies continues:
“You’ve had the CEO of Barrick saying, effectively, ‘gold extraction isn’t really economically feasible at these levels. New supply isn’t going to come on until at least $3,000 (gold).’ So there really isn’t the supply. China is a great example of where they’ve got desperate mining.
In 2011 they had 360 tons of supply….