Greyerz - Physical Gold Demand Enormous & Accelerating

kingworldnews.com

Today Egon von Greyerz told King World News there is major demand for physical gold and it’s actually accelerating. Von Greyerz also said institutional money is going to aggressively enter gold and this will totally change the market. Egon von Greyerz is founder and managing partner at Matterhorn Asset Management out of Switzerland. Here is what von Greyerz had to say about what is happening in the gold market: “We are seeing the low this week or we could be under pressure for another week. But thereafter, in April, if I look at the technical picture, gold looks fantastic. The next move will be a major move in both gold and silver.”

Egon von Greyerz continues:

“If I look at the physical market, we are seeing major demand and it’s actually accelerating. Again, we are looking at a paper market which is artificially manipulated short-term. It has no relevance at all for the gold market in the long-term.

There are two key drivers (for gold). One is technical and it looks and to me it looks like the next move (higher) in gold is going to be a big move. In our view it’s the fundamentals that drive this market. There is a lack of solutions (to the world’s financial dilemma), this means there will be unlimited money printing starting very soon.

I feel as confident as ever this is the main investment people have to own in order to protect themselves from what’s going to happen in 2012 and thereafter....

“I see a lot of investor groups and recently I made a presentation to a major group of Swiss asset managers. It’s the same story everywhere, they don’t own gold and they don’t understand the virtues of gold.

This is why I’m so bullish on gold because I see gold, having gone up in dollar terms almost 7 fold, and no major group owns gold. I am absolutely certain that this is the next big investment.

The institutional investors are going to go heavily into gold and that will totally change the market. As we know there isn’t the physical gold around the satisfy an increase in demand, so that can only be satisfied by a higher price.”

When asked about silver specifically, von Greyerz stated, “Silver has been under pressure and corrects more than gold when the market is down, but I see this as a mild correction that we’ve had in the last month. When silver turns, I think silver is going to go very fast. Once we go through the $35 - $36 level, I could see us going to $40 and beyond in a very short period of time.

Silver is not for the faint of heart because the volatility is enormous. My view is people should hold more gold than silver, but from a profit potential point of view, silver looks very much like it’s going to have a bigger move.”