You might not know who Harvey Organ is, but you should probably know what he’s saying.
Organ, a well-known bouillon analyst who has testified before the U.S. Commodities Trading Futures Commission, says China is getting its hands on physical gold and silver in droves, and you would be wise to do the same.
“The problem now is that the physical is now gone. Where is going? It’s gone from West to East,” Organ tells Chris Martenson.
A lot of people don’t know that China used to refine close to 80% of the world’s supplies of silver, because it’s very toxic. Up until probably ’85, the Chinese handled 80% of the world’s refining of silver. Now they’re down to 40%, but that’s still a major part of China’s industry. They are keeping every single silver ounce they refine, and gold. They are keeping it for themselves; their reserves are rising (though they don’t tell exactly). Two years ago they went up to 1,054 tons and I can assure you it’s probably triple that now. These guys are not stopping. Just like they are not stopping in oil. They know what the game is and they are slowly taking all their U.S. dollars that are on their shelf and converting them to gold, oil, copper – anything that’s real.
According to Organ, the price of gold could soon skyrocket as China continues to buy up physical product.
“And I’m going to tell you: you are going to go to sleep on Thursday night and gold may be $1,670. And then you wake up the next day and it’s going to be a banking holiday. And gold will be $3,000 bid, no offer,” he says.
Not surprisingly, he concludes: “You can’t have anything paper, because you got nothing. You’ve got to have a physical coin or a bar. [If all you have is a] piece of paper — that’s all it is! It will just blow up in smoke!
“So just go buy your physical and be thankful that you are getting it at a cheaper price today.”
You can listen to the interview below (the China part starts around the 16-minute mark):
(H/T: Zero Hedge)