GoldMoney’s Alasdair Macleod has released part 2 of his excellent interview with Jim Willie of Part 2 focuses on the global rush for physical gold and the increasing transfer of wealth from Western countries to their Eastern counterparts, and the hugely bullish picture for silver at the moment.

Willie expects silver to outperform gold 3-fold as the bull market advances.

The huge flow of gold from West to East is evidence of this wealth transfer. Willie also talks about plans by Germany, China and Russia to create an alternative payment system to replace the US dollar in multilateral trade. According to Willie it is going to be gold-based and will be peer-to-peer — eliminating many sources of profit that currently exist for banks. He also points to increasing talk from certain influential people about the possibility of a renewed gold standard.

Willie sees big outflows of gold from London to China, with 5,000 tonnes leaving London from March to mid-June according to his source. As banks are desperately looking for physical gold official reserves might be seen as a tempting source. He senses a scandal were such gold has been replaced with gold certificates to satisfy physical demand.* In his view, Fort Knox likely does not hold the gold that it is claimed exists there.

On the subject of silver, Willie expects the white metal to outperform gold threefold once the prices of both metals start rising. Stockpiles have been used up over recent decades, but the monetary and industrial demand for silver is continuously increasing, painting a very bullish picture for the metal.

Part 1 of the interview can be viewed here

  1. I sure hope Willie’s sources are accurate. The restoration of the market to operation on physical supply-demand fundamentals is well overdue. What I’m anxious to learn from the process is what G-S ratio will finally emerge from the process. That will be the most fascinating part.

  2. Right on M45. Keep stacking as much as you can. Not only stack but be prepared in all other ways. Silver will do you no good in the beginning of a collapse. After a while, you’ll be sitting on top as the “help me” crowd grovels in their dirt. Make sure (see AGXIIK posts) you have plenty of essentials to take you through the initial shock until the PM’s take over. I can’t stress this enough. New York/New Jersey, got power, got food, got water, got meds, got warmth, etc.? Waiting on FEMA? See my Time-Line post from several months back under silver in the forum. Now is the time to review this and the AGX prep. manual as I think time is quickly running out. Go to Silverstackerhaven and look under prepping. Both great sites to get ready. Our silver community is more than just stacking. It’s helping each other out and readying for the shift that is rapidly approaching. Stack high and prep. mighty.
    P.S. Take note of Mary B’s. awareness of getting ready.

  3. There is a logic to the 3-fold forecast:
    Current price ratio => 1,730 / 32.30 = 53.6:1
    Historical price ratio => 16:1
    53.6 / 16 = 3.35 or about 3-fold.
    On the other hand, if he meant 3-times faster, then:
    Gold at 15% annual gain.  Silver at 45% annual gain.
    1st year: Gold = 1,990 – Silver = 46.8
    5th year: Gold = 3,480 – Silver = 207.0
    10th year: Gold = 7,000 – Silver = 1,327.0
    You get the picture…

    • “Historical price ratio => 16:1”

      Yes, I do “get the picture” but also know that the mined S/G ratio in ounces is closer to 9:1.  Industry can do OK without gold but would have a tough time without silver, especially in the high tech area.  As it becomes more and more difficult to obtain large amounts of silver, we will eventually get true price discovery instead of the manipulated paper BS that has been going on for decades now but especially in the last 10-15 years.  At some point, paper manipulation will collapse and when it does it will take LARGE fortunes with it.  Good riddance, says I!  Those who hold REAL silver will have REAL wealth in their hands.  Those who hold paper will have… well, a handy outhouse supply.

    • “Those who hold paper…”
      Those who hold paper will have a nice supply of toilet paper especially if they all contain American 1$ bills. 🙂

    • No .38 strapped to my chest but I do have an AK slung across my back, a combat knife on my right thigh, a .45 auto on my left hip, and a Mossy 500 within easy reach.  No, I am not interested in the least in being messed with.  Insert evil grin here.  lol

  4. It’s gonna be a happy day when the GTSR reverts to its natural level.  The price of silver won’t mean a thing to the world economy.  It’s price inflation will be a drop in the bucket.  But as for its power to  front run inflation and the banking problems that we expect, it’s going to be a world beater.  I can’t wait.  Or maybe I’ll have to.  It’s like the anxiety of waiting for Santa Claus.
    Tell me he’s still real, right?

    • AG… yeah, I know the feeling.  I’d be real happy if the S did not HTF but IF it does, I got silver, guns & ammo, food & water, a good woman beside me, a roof over our heads, and faith in God.  What more could any man want or need?  😀

    • AG
      I think it is more like waiting for that first at bat experience.  Fear and trepidation yet overly optimistic.  There are only a limited amount of outcomes.  You dread the strike out but long for the home run. 

    • When the gold to silver ratio goes back to its historical ratio, I’ll be trading some of silver ounces for a few ounces of gold. Right now, I’m buying a little bit of gold whenever it is available for sale to diversify my savings so that I won’t get loses all at once in terms of dollars.

  5. Wilie did not say anything new, unless I missed it.  China/Far East accumulating gold.  Western nations getting rid of the barbaric relic at a good price.  They don’t need or want any.  Western nations all of a sudden caught in a “whoops” moment and try to get back that which was sold.  Screw everybody but the Far East.  Western nations’ populations start to wake up after watching their barbaric relic depart for parts unknown.  Decide they want to see their gold but western banks say no.  
    Looks like the whoops turned into an aaah shit. 

    • I’ve heard somewhere that all the Western countries have sold their gold for pennies on the dollar. Most of the people don’t care about their gold and silver because they think that fiat currencies are real wealth. They will learn the true fact the hard way which is when their savings in fiat currencies will be all gone.

  6. I’ve been reading about 8 months of Willies monthly newsletter.
    I’d say about 60-70% is a recitation of previous articles with some additional data to support those entries.  The other 30-40% is new and current.  The repeats help cement the prior month’s data so I can keep that in my memory core.  The rest is more along the line  of a breathless gossip column that drills down into the rough and seamy aspects of our world’s problems.  It’s draps you along with the same urgency of a pot boiler novel.  I like the style and take in a good part of the message to add the the knowledge data base.

  7. once the paper market starts defaulting and no longer meets physical demand will we have two systems a physical market with demand supply numbers and a paper market that has no relation to the physical market … or will the paper market move to a more realistic physical price range …
    i believe the paper market will have to collapse and either reform with new rules or disappear in its current form

  8. I don’t know if you guys have noticed, but Jim Willie’s “sources” are always wrong. When he says, “sources,” he means he made it up off the top of his head then yelled it into the microphone like a really convincing blowhard. I find listening to him about as useless as listening to Marc Faber or Bix Weir. It’s nice for all you bloggers to keep shooting him a few dollars for the interviews, though.

    • @silvermeddler (what a perfectly obvious handle) it sounds like you may have just got your fingers mangled in a pile of silver shorts this morning. Few folks here ‘follow’ ANYone but their own logic. Which raises another point. That you express the mentality of a ‘follower’, looking for a ‘leader’ to tag along behind, maybe your time might be better spent over on CNBC or Bloomberg.

    • Or Huffington Post Or Yahoo blogs……..

      ha ha ha ha ha listening to all follow none…

      I do not subscribe to HYPE 

        Someone must be meddling in paper and needs some suport

    • @patfields I am a silver investor who is learning the markets, so over the last couple years I’ve compared the various pundits and made my own decisions as to who is more accurate and worth listening to. I didn’t get burned on any silver shorts, I don’t even know how to PLACE a short, but I did get burned when I believed the 10 Year would fall to 1.0-1.25%, partially in thanks to one of Willie’s useless diatribes (and Biderman… and Zerohedge). I have to take responsibility for my own mistakes, but you have to learn somehow. If you don’t like considering what pundits have to say, then what are you doing here? Give up the trolling, bro. I’m not going into Finance, I’m not a millionaire or a professional broker like most of you, so put on your big boy panties and grow up. I’m a newb. I’m learning. I think Jim Willie is useless.  Sorry if you get butthurt when someone disses your hero, but I don’t have time for this shit.

  9. @silvermeddler 

    So Why are you bashing people instead of informing us of your actuate pundits. I did not as of yet see you add any resources you feel would be better…  

    PS: just a tip stay out of the paper market your fingers will get burnt all the time regales who you read or listen to..

    • You’re right! PatFields is a SilverDoctors’ member ever since this website was first created so he is a real member. If you want to see a real troll on this website, try to look for the guy called ILuvPMs and you’ll see what we’re talking about.

  10. @silvermeddler

    Forget ‘the markets’ and forget ‘investing’. I started out with a fair little pile of banknotes that went into some 100oz bars at about 15 and endured a drop to 9, but doubled up. The same thing happened again between 21 and 15.  Recently my ‘highest’ lot was about 41-42 and again later doubled that at about 31.

    In all this time I haven’t come out of a single grain of my holdings because I’m NOT INVESTING. In fact, nearly everything I’ve accumulated I’ve buried while ‘bike riding’ in the woods, largely so I WOULDN’T be tempted to ‘trade’. I’m saving the ‘fruits of my labor’ in the most durable and highest quality money I can identify. That’s silver (and a little gold). If I wanted to gamble, I’d visit a casino. All I want is to eat, care for my wife and pay my bills as time goes on.

    I’m an old fart mechanic who’s been ‘put to pasture’ and to pay my bills I survive on oatmeal and peanutbutter sandwiches, so I’m hardly the ‘millionaire’ you’ve conjured up in your envious imagination.

    Jim Willie isn’t my ‘hero’. He’s an enormously entertaining writer and whitty speaker who has some fascinating views that spark my interest for contemplation. I’d already reached my own conclusions about the collapse, long ago, on a set of VASTLY different criteria and so where his observations and deductions coincide with mine, I like to mull over the picture from his viewpoint, that’s all.

    There it is … I’m off my soap box. You can climb down off yours now too.

  11. The run for physical gold by the others holding paper gold is on for a long time. Recently, Germany has demanded to see a part of their physical along with other countries such as the Netherlands and more. More people are understanding the concept of “If you don’t hold it, you don’t own it”.

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