Weldon – ECB Forced to Print, Gold’s Lowest Target $3,000

October 15, 2011

With gold and silver finishing the week higher, King World News interviewed Greg Weldon, Head of Weldon Financial. Weldon has a global following of some of the wealthiest investors in the world including individuals, institutions and financial firms. When asked about his take on the ongoing crisis, Weldon stated, “The contagion is still raging and it’s too soon to celebrate. This is the problem I have with thinking any of these solutions they are going to come up with are really solutions at all because 25 of the 27 nations (in Europe) are in violation of the rules on debt and deficits. So how are these nations going to bail each other out? They are all in the same boat.”

“This is highly problematic unless the ECB is willing to print new money. This is probably, ultimately, where this is going to be forced. My thought process is that a central banker, when pushed to the precipice of debt deflation, will choose to reflate every time, that’s why this could be very bullish for gold.

If you look at the open interest, if you look at the COT in gold, speculative positions are very, very low historically. Open interest dropped to levels we haven’t seen since gold was below $1,000, and the commercial short positions heavily liquidated. So speculators were selling, commercials were buying.

Click below to read the entire interview:

via My Blog.

© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.

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