Massive Defaults & Dramatic Increase in Gold-Nick Barisheff

Nick Barisheff (2)By Greg Hunter’s USAWatchdog.com

Gold expert Nick Barisheff wrote a book titled “$10,000 Gold” in 2013. According to Barisheff, that number is even more possible today.  Barisheff contends, “It’s hard to believe when I wrote the book three years ago, and I talked about the issues that would lead to $10,000 gold are still there and have gotten much worse.  None of the issues have been solved, and now we are in multiple bubbles, a lot of them surrounding debt, and it keeps growing all over the world, and that’s the main correlation to the price of gold.”

On gold versus other investments such as bonds, Barisheff contends, “We can’t get anything close to normalized interest rates. . . . You have a considerable amount of sovereign bonds with negative interest rates. What can they do, go more negative?  This is one of the long term driving factors.  There isn’t the argument of gold doesn’t have a yield, and therefore isn’t worthwhile as an investment.  Well, many bonds don’t have a yield either, and corporate bonds that do have yield are extremely high risk.  I think they have nowhere to go but down (in value).”

So, how does this financial story end? Barisheff says, “Massive defaults.  People are thinking we are going to have a gold market that’s going to be a steady stair step up, and I don’t think this is the way it’s going to happen.  At one point in time, we are going to have a dramatic increase in the price of gold.  It will then be extremely difficult to obtain gold at that point in time.  People think *** when it is obvious that we have a crisis on our hands, then they think go out and buy gold.  That’s not going to happen.”

Barisheff says all markets are manipulated and fraudulent. Barisheff predicts, “This has been happening in all markets.  When you have a manipulated market, at some point in time, you have a massive correction back to what would be the norm.  It usually overshoots the norm.  It’s like keeping a balloon under the water.  Sooner or later, it’s going to pop.  That’s what we’ve got now.”

What does a ‘massive correction’ mean in the short term? Barisheff says, “This needs to catch up to where it should be.  In my book, to get to $10,000 gold, there is almost a perfect correlation to gold and U.S. debt up to 2012.  Since then, the debt kept increasing and continued to increase, and the gold price corrected.  Right now, if we were going to get back to correlation, gold would have to be $2,300 per ounce, and there is no end in sight. . . . Silver should be around $50 to $60 per ounce.”

Join Greg Hunter as he goes One-on-One with Nick Barisheff CEO of Bullion Management Group (BMG).

(There is much more in the video interview.)

After the Interview:

There are free articles and analysis on the homepage of BMGBullion.com. If you want to get a copy of Nick Barisheff’s book “$10,000 Gold” please click here.

Comments
  1. Gregory Mannarino

    Greg there is something so dark going on, the purpose of all this, that the truth is stranger than fiction. From the current fake financial system, direct market manipulation by world central banks, the starvation in South America, the debt bubble, the human bubble. This “correction” is going to leave the middle class destitute, desperate. I hope people are paying attention.

    • Greg Hunter

      I agree Gregory!! Thank you for commenting here!!
      Greg

  2. frederick

    Sure hope he is correct lots of people are waiting for that “reset” he spoke about

  3. Anthony

    Thank you Greg for your tireless effort to bring the message of truth. It is irrelevant the amount that precious metals, commodities and resources will eventually be. The ultimate result will be something that we cannot comprehend now only when it happens and it will happen.
    I know our religious beliefs maybe different but we are ‘cut from the same cloth’.

  4. Dan

    GOLD LEASING & ETF CONFUSION – CLARIFICATION NEEDED PLS

    I’m a bit confused about what Mr. Barisheff said regarding the leasing of gold. If I heard correctly he mentions, on the one hand, that many gold-based ETFs actual gold backing is based on “leased” gold held by the Central Banks (e.g., let’s say the GLD ETF is backed with gold from the Fed). But on the other hand, he then said that (at least some of) the “leased” gold from these Western Central Banks first got sent to Switzerland to be refined into 1kg bars and then shipped to China (who are in clear possession and title to the gold).

    The above two statements seem a bit “contradictory”, as if we look at the following possible scenarios, what exactly would happen?

    1) Scenario 1 – Following a big market crash and huge re-pricing of gold to the upside, wouldn’t the Fed simply lay its claim on the physical and take it away from the ETF company/provider? If so, would this is legal? Where would that leave the investors who hold shares of the ETF? Would the ETF provider simply settle in “cash” at the newly elevated price when clients sell their shares? And more importantly, what if the actual gold isn’t in their vaults in the first place as per Scenario 2 below – what would happen then?

    2) If China has the actual gold in their vaults that was once in the West (let’s again said the Fed’s vaults), then how could they (the Fed) lay claim to any physical (as in Scenario 1 from above) if they ain’t got it and it is sitting in vaults in Shanghai?

    Sorry for these confusing questions; but if anyone (including the other expert guests such as Bill Holter, et al) could shed light on this Pandora’s box, it would be greatly appreciated, as I think many of us here do hold some gold and silver ETFs and would like to know just how things would pan out after a price-reset and sale of our respective shares.

    • Russ

      Really good question. I do believe this is the situation with re-hypothecated gold. It is lent and then lent again (and again) so that you end up with the situation of COMEX gold being leveraged on the order of 90 contracts to every ounce of gold (or is that 500 contracts for every ounce?). When the big default/reset happens the ounce is owned by the person or entity with physical ownership (meaning it is in their vault). Holders of shares in an ETF own paper, not metal and the paper will be virtually worthless. Central banks who have lent their gold and expect it back may be suing a bank which has filed for chapter 7 bankruptcy and has been dissolved, there may be no recourse.

      But that’s just how I understand the situation and I’m sure there is a fine point that escapes me.

  5. Philipat

    Agreed with all, BUT I believe that right now is a dangerous time. The “commercials” have record paper short positions, which usually means a correction as they rinse the specs before repeating the cycle. The danger is particularly acute because, if, as seems likely, the UK will vote to remain IN the EU, the Cartel will use that as an opportunity to monkey hammer Gold and (profitably) cover some of their shorts as the specs algo stops are triggered and they all run to the exits simultaneously. So I would sit tight this week and see what happens before buying more Gold and/or Gold Stocks.

  6. JC Davis

    Greg like you said interesting.
    If gold becomes the backing of other world currencies at 10,000 dollars per oz. I can not see any selling for dollars outside the USA, so inside the USA the CCC will confiscate all gold in disguise of national security. That makes holding gold a target on the owners back. Am I correct ? May be better to own copper wire.

    • Greg Hunter

      JC,
      If that is the case, you will need a lot more than copper wire.
      Greg

      • Chip

        No sh!t Sir… Chip

    • Tin foil hat

      JC Davis,,
      I think maybe one out of thousand Americans own an ounce of gold. FDR had to confiscate gold for the creation of the fiat currency.
      If we are going back to the hard currency, the government has to get rid of /confiscate the fiat currency by hyperinflation. Folks would then have to work to earn gold.

  7. David

    Just the facts. Great interview!

  8. Country Codger

    Hi Greg,
    I was totally unfamiliar with Mr. Barisheff. The sound quality on his end was very hard for my limited hearing to pick up easily. Otherwise, this was a very informative interview and at the end, the little nugget, pardon the pun, about central banks and gold leasing was a huge revelation for me. I did not understand how the Fed and the Treasury could steal our gold from Ft. Knox and sell to China with zero accountability.

    Keep your eyes wide open beginning August 26 through September into October, especially around the 20th+/- a couple of days.

    Shalom,
    CC

    • Shadow of Doubt

      Country Codger,
      Say you are in good company with your harbinger of “tohubohu”. I was talking with a handful of recently retired special forces operatives and they openly stated that they expected “martial law” by the end of August. What they know or who they know was something they were apparently unwilling to share but it certainly caused me to sit back and reexamine where exactly we might be in the grand scheme of things. Be ready!

    • NC Gal

      CC, I am curious as to why you singled out those particular dates. Can you say more about that? They jibe with what Bix Weir said, but that’s the only place I have seen that time period identified as one to watch.

      • Country Codger

        Hi NC Gal,
        This is the peak period of a supercycle. I could argue that the period actually goes back to the second week of July but I will stay with the supercycle peak. During a supercycle MEN make very bad decisions. Almost all economic collapses have happened during a supercycle peak.

        I did say that MEN made very bad decisions. I believe that there is a reason for this. Women have had their bodies affected by the moon for the greatest part of their lives so that the increase in the electromagnetic energy does not affect women to the degree that it does men. The second thing that may or may not contribute to this phenomenon is that men have more iron in their bodies than women. As women know, because of their monthly cycles (re:moon) most women tend toward being anemic whereas the high concentration of iron in a man’s body will predispose him to heart attacks ((I had 2 at 45 years old)). Now, some women, as well as men, suffer from a disorder known as hemochromatosis and these women are predisposed to heart attacks as well.

        Dr. Steve Puetz talks about the supercycle in his book “The Unified Cycle Theory”. The medical stuff I have researched on my own and discussed this with numerous doctors of various disciplines.

        If you would like to hear an interview with Dr. Puetz and hear about the Puetz Postulate follow this link and then look for the blue highlighted link. https://codgerville.wordpress.com/2014/09/08/blood-moons-eclipses-and-cycles/

        Most of my “Guesses” are taken from scripture. If you want to understand what I am talking about is my series on why I was wrong about the destiny of America, Parts 1,2, & 3. You can find the first one here: https://codgerville.wordpress.com/2014/08/05/why-i-was-wrong-about-americas-destiny-part-one-the-curse/

        There are many other articles that may help your research. Some are shocking, some are graphic but I base them in scripture including the invasion of the US by ISIS.

        Shalom,
        CC

  9. CrazyCanuck

    Good Morning Greg. It seems Nick is pretty well preaching to the choir, but I loved how you stirred up the ole righteous indignation referring to the fraudulent Cartel price fixing as the reason for the “correction.”
    One slight question I would pose to Nick is that although he spoke to the industrial use of silver in electronic devices, he did not encompass the photovoltaic uses which with India and China usage, is expanding going forward. Just wondered if he thought this would have a demand side impact ….

    • Chip

      Photovoltaic use IS industrial use… Chip

      • CrazyCanuck

        Ok, that it is the lions share of industrial use is what I thought, just curious as to why he focused on the small amount in cell phones.

  10. Paul ...

    Not only are all markets manipulated … our destiny and the destiny of our children and children’s children are being manipulated toward a nuclear Armageddon by Evil Neocons … the Holocaust of 9-11 was just “a little taste” of what they have in store for us… are we going to to walk “silently” once again into their nuclear Armageddon “oven” … without saying a word??? … only now do I understand why God did not intervene to save the Jews from Hitler’s ovens … it was so their progeny would have the strength of character “to stand up” to the face evil … and thereby Save the Entire World … for All of Humanity!!! … NEVER AGAIN (will we allow Evil to destroy our women and children for money … we will overturn their tables)!!!!

  11. Frank

    Mr. Hunter:

    This is one of the best interviews of the year. Just like Mr. Kirby, Mr. Barisheff is a fellow Canuck and I appreciate his insight and candor. Wow, talk about driving the message home about PM ETF and the leases. Basically, if I read the information correct, the ETFs are a sort of a derivative in that they derive their value from the commodity (GOLD/SILVER) that these funds do not physically own. The fate of these funds then will be the same as derivatives.

    However, this means that PM mutual funds that by law need to own the assets that they are comprised of should also appreciate in value when the price of PMs adjust. Assuming that there is no manipulation in these investment vehicles.

    Na….stick to the physical asset I say…..safer that way.

    • Jim

      Some funds like Sprotts and SBT.B have actual physical.

  12. Paul ...

    I want to know just “who these neocons are” in NATO who can write rules such that if Russia “hacks our computer” it is justification for a nuclear war with Russia!! … is this the same group of neocons who just covered up “the hacking down” of four(4) buildings in NY and the Pentagon on 9-11??

    • Paul ...

      How about our good military people getting off their ass and rounding up all the internal and external “traitors” who are trying to start a nuclear Armageddon (to cover up their massive fraud and Ponzi schemes) and hall them all before a military court of justice … upon finding them guilty we can grab the guillotine cord and “pull it” allowing it to go into “free fall” and hack off their heads the way they have paid ISIS to hack off our heads and the way they hacked down our buildings on 9-11!

      • Paul ...

        An eye for an eye … a tooth for a tooth … why not a hack for a hack … is justice just one sided? … lets put the scales in balance … are we going to allow the neocons to hack down our buildings, hack down the Pentagon, hack off the heads of Christians and DO NOTHING but yet get in a lather “if the Russians hack a computer” and send our children to battle and start a nuclear war with Russia over it??? … how dumb do these evil neocons think we are??

      • Tin foil hat

        Paul,
        I believe there are good military people doing something about this runaway train wreck of administration, they are fighting back by supporting Trump.
        As far as guillotine, we are not a banana republic yet.

        • Paul ...

          Tinfoil … The important thing is that we go after the traitors to our country and its people … the means by which we make the traitors pay for their crimes is not important … these traitors … whatever their political party. nationality or religion … must be made to pay for their evil deeds … the evil they do belongs on their own shoulders!

    • Freebreezer

      Behind the scene – You can start with Victoria Newlun (& Hubby Kagen), Samantha Powers (& Hubby sunstein), Hillary Clinton (The BIG DOG – hubby the big banks); throw in for a little flavor McCain (A guy that has not met a country that he would like to bomb and blow to hell) and Lindsay Grahm … just a start! To find out who is behind it all, you would need to ask Hillary.

  13. Michael

    Hi Greg,

    The Treausury claims that it examines the gold bullion in DEEP STORAGE reserves every year.

    Deep Storage: That portion of the U.S.Government-owned gold bullion reserve which the Mint secures in sealed vaults that are examined annually by the Treasury Department’s Office of the Inspector General and consists primarily of gold bars.

    https://www.fiscal.treasury.gov/fsreports/rpt/goldRpt/current_report.htm

    I suppose if it is all not there, they can blame it on Richard Nixon, he’s a lot easier to kick around now that he is dead.

    • andyb

      After millions of lies, not just by the present govt (which have been verified), you believe the govt regarding its worst enemy gold? There are quite a few anecdotal revelations that the Fort Knox gold is long gone; stolen in the Clinton Administration and the term “deep storage gold refers instead to the unmined gold on Federal property in Nevada, Idaho, etc that has been discovered and “banked”. Don’t forget that under Obama’s NDAA, all assets in the US, including your labor, can be appropriated in the event of a national emergency (as defined by the President). There is also proof that in the last decade, refiners have seen tons of 75% (or less) purity bars, exactly the same as those produced after FDR’s confiscated gold was melted down. That would represent the bottom of the barrel; the good delivery bars would have had to be long gone. We have not had a true audit since the 1950’s. Yearly audits just ensure that the tape covering the locks has not been cut; there is no physical examination, assay, etc.

  14. tom grimes

    Greg,
    Please, insure the audio levels for both you and the person you are interviewing are at the same level. You are always loud and clear, but sometimes the interviewee is at a much lower audio level. In order to hear the interviewee, my neighbors get to listen to you.
    Otherwise, good interview. Thanks.
    tom

  15. Bill

    GREG; I hear guests on this site who keep saying the price of gold should be this and the price of silver should be that, but they aren’t because the price is being manipulated. Please explain , if the markets crash, cant they just keep on manipulating the precious metals prices??

    • Greg Hunter

      Bill,
      NO, not in the face of a crashing market. Assets in those markets will be lost or confiscated or hypothecated. You worry about price when you should be focusing on wealth preservation and financial survival.
      Greg

  16. Rusticus

    Greg, your guest is forecasting a precipitous rise in metals across the board… does this hold true for only precious ones, or industrial commodities as well, like copper and zinc? Lots of that secondary silver comes from these mines and higher prices would certainly spur more discovery…

  17. al Hall

    Nothing really new from this Greg. Anyone who is paying attention to what’s going on would know all of this. I believe $10,000/oz is a low conserative number?

  18. Tin foil hat

    Fraud and manipulation have been ongoing for the past 20 years. Technically, it has been ongoing since Nixon closed the gold window.
    Massive correction will happen sooner or later. However, to pinpoint the time of occurrence to a specific year, let alone a specific month, is impossible.
    In 2009, I thought it would be all over within 5 years. With that said, this massive correction does really seem to be getting closer and closer but I wouldn’t be surprised one bit if this Ponzi would last another 5-10 years.

  19. Pinocchio

    When the price of gold reaches USD 10,000, men on the street will know that they have been being sayonaraed by their government.

    • Tin foil hat

      Pinocchio,
      Men on the street had no idea they were sayonaraed when Nixon closed the gold window.

      • Sayonara

        And we are in the process of being sayonaraed on a level never seen in human history.
        When the Reset happens the average person on the street will look like they have seen real ghosts and it is going to be horrifying.
        Sayonara

        • Galaxy 500

          Yep, there will be wailing and the mashing of teeth

    • Freebreezer

      P- this 10,000 USD price is a bit phony … by that I mean that when the public realizes that the government has sayonaraed them and the world looses all credibility in the US fiat currency (and most all other world fiat currencies to boot) … how do you price something in a system that has no confidence? A 10,000 $ price implies a diminished confidence in that the dollar looses 87.5% of it present value, but that there is still confidence in the system. And Why 87.5%? … No one can predict the public confidence factor, thus the final price is an unknown. Personally, by the time gold hits 3500 to 4000 USD + (the average USA Joe has lost ~65 % of their $$$ wealth), all bets are off the table on what will happen. A class 5 financial tornado is bearing down and what is on the other side is a complete unknown!

  20. hal

    Where the comments at?

  21. hal

    Good interview. Seems pretty strait-forward that some kind of reset involving gold is inevitable. Only real question seems to be when.

  22. James Hastings

    Thank you for these scriptures. Soon.

    • Robert Lykens

      Beautiful, Gaby!
      More, please!

  23. James Hastings

    Thank$ Mr. Hunter. I really enjoy your site.

  24. Chip

    Greg, love what you do. Thank you for your service to your fellow citizens… Chip

    • Greg Hunter

      You are very kind to say that Chip!
      Greg

  25. Sayonara

    Greg:
    Another great interview from another great and astute Canadian financial intellect!

    Enjoyed your interview on KSFO yesterday morning with the great Brian Sussman. I emailed Brian and requested that he does a regular weekly USA Watchdog Report with you. You college buddies are real Rockstars!
    Best,
    Sayonara

    • Greg Hunter

      Thank you Sayonara!
      Greg

  26. pat the rat

    Greg didn’t The government take all the gold back in the 1930,s ,they would never try to take back all the gold twice, would they?

    • Tracy Welborn

      I can’t imagine a scenario where that would work out well for the government. We are a global economy now. I don’t think they could do it. China is ENCOURAGING their citizens to buy gold. Can you imagine citizen ownership of gold in China but not in the US? Besides, how valuable is a commodity if no one but the government is allowed to have it? I realize they did away with it in thirties but that was in order to promote the new “debt” based dollar, right?

  27. Bill

    GREG; While it is difficult for some of us ” High Mileage” people to here Mr Berisheff, what I heard was a man of wisdom, yet humble. Our world could use more men like him. Keep up the great work

  28. Hatemail

    Gold is just a hedge bet, not a means to an end. We have to live in today and prepare for a tomorrow that could be far different from what you expect.
    Prepare and plan wisely.

  29. Charlotte

    Greg, thank you for the interview and for having the courage to put the real truth out there. Knowledge is power, be prepared unlike most of the sheep. The drum is beating louder and louder, disaster is just right around the corner. Prepare and Pray.

    • Greg Hunter

      Amen Sister Charlotte!
      Greg

  30. Tracy Welborn

    Greg;
    I really appreciate all your hard work. I can sense a feeling of “prep” fatigue in this community. I have it myself at times. It’s like standing on the sidelines ready to go into a game where you know you are going to take some hard hits and nothing happens, over and over again. I say that just from my perspective too. For a lot of people, a great deal has happened already. I think the reset is going to be so difficult that we will literally divide the calendar with life BEFORE the reset and life AFTER the reset.

    • Greg Hunter

      Tracy,
      If you think you have fatigue now, wait till this blows, and you will see some real fatigue for the people who have not prepared. They will get really tired of trying to figure out how to survive with empty shelves and gas tanks. I do understand your points, as they are well made and well taken!! Thank you for commenting and adding this perspective!!
      Greg

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