Today Ben Davies spoke with King World News about why he believes the gold market is headed much higher than current levels. Davies made some bold predictions. Here is what the rising star had to say: “Right now, the best expression of our macro view is still to own gold and silver because we believe this is ultimately going to be the survivor of this Debt Supercycle. We believe it’s going to be the surviving collateral.”
Ben Davies continues:
“The ECB, even in this last meeting, has effectively reduced its criteria again on collateral. They are effectively saying, ‘We’ll take everything, including the kitchen sink into the ECB, if it allows us to backstop the system. So in that situation collateral is running out.
We noticed this also in the US. Smaller banks are now allowed to have gold as a zero risk-weighted provision….
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