“Major Catalyst” About to Send Gold and Silver Prices Surging

Today a legend in the business told King World News that a “major catalyst” is about to send gold and silver prices surging. Keith Barron, who consults with major gold companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also spoke about something else investors should keep an eye on, as well as what to expect going forward in both the gold and silver markets.

Here is what Barron had to say: “We are starting to see some discoveries in both the gold and uranium sectors. But the situation is dire. I haven’t seen sentiment like this since post-Bre-X in 1997. So while it’s been a very tough market out there, I strongly believe we are at a bottom now.”

Keith Barron continues:

“The gold price has picked up a little bit today, but I think it will gain even more strength as the Dow turns around and begins to correct. The strong stock market has continued to attract new money so it has distracted from the gold and silver markets for the time being.

The bottom line is that QE is going to start to kick-in at some point and produce tremendous inflation….

“There is a misperception that as interest rates turn higher this will be negative for gold. That is not true and not supported by history. Historically, if you look at when interest rates start to gallop higher, this has always been a good thing for gold. The only caveat to that is when the market begins to have net-positive real interest rates, but we are a long, long way from seeing anything like that.

People have to remember that gold has been going up tremendously in currencies like the Japanese yen. This is taking place as the Japanese actively devalue the yen. So they will continue with QE in Japan and debase the currency even further. This will be net-positive for gold.

There are some 30 countries around the world that are actively engaged in QE. It is also important to note that in the US we have seen the unemployment rate tick up a tiny bit in the past week. The US also continues to see a rise in food stamp usage. So the reality is this is a very scary economic situation that is engulfing the world, particularly the West.

The money is printed, given to the banks, and the banks buy stocks. This is what has fueled the rally in stocks, not fundamentals. But what you have not seen is the money trickling down to the people. This is a major problem. There is a real disconnect going on as stocks continue to bubble higher. When things turn around in global stock markets, I think they are going to turn quite violently.

I would also like to add that a number of pundits had been saying that gold was going to $1,200. That has turned out to be completely wrong. Every single time there is a downturn in the price of gold, the Asians, particularly the Chinese, are in there aggressively buying. That’s not a recipe for $1,200 gold, but it is a recipe for a strong bottom like the one we are presently seeing.

The Chinese have a history of playing down their gold purchases. They do not want to ramp up the gold market while they are trading in their dollars for physical gold. But at some point a major catalyst will emerge and we will begin to really see gold and silver prices surging.

That catalyst could come from anywhere. It could be from trouble in Europe or the US. It could also come in the form of another major bank failure. We will see more bad news, that’s just the way these cycles play out.”

Barron also added: “I am also waiting to see what the trigger will be for higher uranium prices. Despite the propaganda, Areva and the Japanese government are now turning back on six more nuclear reactors.

We also know that at the end of this year the megatons-to-megawatts program goes away. So almost 20% of the world’s secondary supply of uranium is going to simply evaporate. This is going to happen as nuclear reactors are being turned back on in both Germany and Japan. For what it’s worth, the reason countries like Japan are turning reactors back on is because it was negatively impacting their GDP.

So a massive chunk of the world’s uranium supply is going to disappear and it cannot be replaced by new mine supply. Also, a lot of future uranium production has already been spoken for by the Chinese, Indians, and by the Arabs as well. The UAE is building four nuclear reactors as an example. These countries have been securing uranium production in some cases 7 years into the future.

The reality is the world is headed towards a major supply crunch in the uranium space and this is going to ignite prices much higher. We are going to see real shortages of uranium going forward. The fact that future production has already been locked up in that environment is just going to exacerbate the ultimate upside move in the price of uranium.

I spoke with some major players in the uranium space at PDAC and they agreed that there is nothing that can be done at this point to stop a major supply crunch from happening. This is going to mean much higher prices for both uranium, uranium explorers, and uranium producers, for the foreseeable future.”