Rule – There Is A War Going On Between Paper & Physical Gold
May 29, 2013
Today one of the wealthiest people in the financial world told King World News there is a war going on between the paper and physical gold markets. Rick Rule, who is business partners with billionaire Eric Sprott and the CEO of Sprott USA, also shares with KWN readers who is buying the physical gold as well as what is really happening with the global economy. Below is what Rule had to say in this tremendous interview.
Eric King: “I have to ask you about gold, it’s been stuck down here in a trading range.”
Rule: “It sure has. It would appear that there is a war going on between the paper futures market for precious metals and the physical market. I like to think that we are seeing a continuation of a trend of gold going from weak hands to strong.
When I say, ‘weak hands,’ I mean central banks from slow growth Western nations, going to central banks from more muscular, over-leveraged frontier and emerging markets banks. And also gold going from the leveraged-long, institutional momentum holders where it’s part of derivatives and carry trade, to unencumbered physical retail cash buyers….