Andrew Maguire, a renowned expert on gold, said that the jig is up for the dollar. It’s time as a superior currency is over, but that’s great news for gold.
Maguire, who is CEO of Kinesis, will be rolling out a gold backed currency in the fall, in preparation for the eventuality he says is certain.
In an interview with USA Watchdog’s Greg Hunter, Maguire laid out what he thinks the gold market and the new Kinesis currency will look like.
Maguire says there will be actual precious metal backing up the new currency, Kenesis. Maguire says:
“The backup will be gram for gram. This is the interesting part about it. We all know that the paper markets (for gold) have leverage of 500 to 1. We actually think it is much closer to 1,000 to 1 when you account for all the derivatives. . . . Here’s the thing about Kinesis. We’re talking about a market that is at the margin. It’s so tight this physical/paper market is already at the margin. We are witnessing right now real competing physical demand, and that is forcing discipline on the paper market, and it raises the point where the lines cross. . . . What’s it going to do to the paper market? It’s going to raise the offer to sell immediately deliverable physical gold. . . . Kinesis is going to be a game changer.”
Maguire goes on to say that a price reset in gold and silver is inevitable. Even though he isn’t sure when it will happen, he says he suspects it will happen on a Friday.
We are very close to a price reset (in gold and silver). What is a price reset? It is no more than settling . . . close to a trillion dollars of derivatives that are underwater and unable to be delivered. It is going to be a simple paper market reset. I suggest it will likely happen on a Friday . . . and there will be a known default and a price adjustment for Monday morning. . . . You will be into a bid only market. There would not be any offers to sell gold. . . . I am not going to guess on a price. . . .I know of two investor groups that are buying physical gold because they know there is going to be a physical price reset.”
In closing, Maguire says, “The jig’s up for the American dollar. Obviously, it’s not going to be overnight, but it is happening. Gold has to appreciate in this environment.”
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