Mark Albarian discusses plunge in gold prices

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Earlier today, the price of gold began to plummet and if you looked at Drudge Report the message was clear: ‘Panic everywhere’. Glenn invited Mark Albarian, President & CEO at Goldline International, Inc (and sponsor of this program and website), to discuss the news and give his perspective on what is happening in the gold market.

GLENN: I’ve been e‑mailing back and forth with a lot of people over the weekend because some really significant things are happening with the U.S. dollar. I don’t know how much time we have, but I will tell you the clock that we feared and told you would happen and would start clicking and ticking is, and it’s only a matter of time before the U.S. dollar is not supreme anymore. And there’s something weird happening at the same time. For some unknown reason gold is now plummeting, and if I’m looking at the Drudge Report, it says panic is everywhere. Mark Albarian is a sponsor of this program. He is from Goldline, and I wanted to call him and find out why is gold plunging. What is happening, Mark?

ALBARIAN: Well, I think people have reacted what Goldman Sachs said about a week ago where they said gold was going to go lower. And, you know, traders out there, if they get information like that, will sometimes sell gold, sell their gold or sell gold short to take advantage of a Goldman Sachs quote. Goldman Sachs’ basis for it is, “Hey, the economy’s getting better. The world’s getting better. Everything’s okay. Look at the stock market going up. Gold’s not as important.”

GLENN: Can you tell me that ‑‑

ALBARIAN: That’s not something that I personally believe in the long run.

GLENN: I don’t believe ‑‑ I mean, really? Goldman Sachs said it. So it must be so. I don’t ‑‑ I’m not one that actually believes that this is coincidence that the sovereign funds are buying up gold, or as countries collapse, they are dumping gold and then at the same time we’re being told that the economy is okay. I personally think that this is collusion. It is keeping the price of gold down for the sovereign central banks so they can store the gold. Do you think there’s anything to that? Because that’s just ‑‑ that’s just me saying that. Is there anything that you’ve ever read ‑‑

ALBARIAN: Well, I think there’s a lot to be said for that. First of all, there’s some talk that Cyprus might sell its gold. Whenever a country or a central bank or there’s rumors that a large amount of gold is going to hit the market, people panic. Remember Germany talked about selling their gold. Switzerland talked about selling their gold. Many, many times it just doesn’t happen.

The other thing is as you’ve seen and I’ve seen is that China and Russia have increased their gold reserves. So whenever there’s been an opportunity to buy any quantity of gold, you’ve seen other countries. It’s not just the big ones or the giant ones. You see India increasing gold reserves from time to time. So you see other countries taking advantage of these opportunities.

Right now that word “panic,” it’s, there’s no panic at Goldline. There’s no panic in the physical market. I don’t think investors that own gold are panicking. I think people that are on margin, that are speculating, that are traders, they’ve made ‑‑

GLENN: They are panicking.

ALBARIAN: Yeah, they overreacted. How come nobody’s talking about silver? Silver’s down today almost 9%. So if gold’s going down, does it make sense that silver goes down? Does it make sense that platinum goes down? Does it make sense that palladium, which is almost purely an industrial metal. So if things are going ‑‑ getting better, does it make sense that palladium is down today 5%? It seems like it’s, you know, an overreaction in the trading markets. But who knows.

GLENN: Okay. So gold mining shares around the world were battered, and this is kind of what you’re talking about and this is something that I have said don’t do and that is buy paper gold. So the ‑‑

ALBARIAN: I would agree with you. Gold mining shares, what you are doing is you are investing in a business. If that gold mine makes money and the stock market’s good, you’ll make money. But you’re not betting specifically on the gold price. And shares can, you know, react up or down because people feel like gold’s going to go up or because of a particular mine.

GLENN: Okay. So when does ‑‑ because ‑‑ in fact, I got a call from a guy today. I got a call from a guy. And he said, “Glenn, I just want you to know because I know you’re a big gold guy.” He said, you’ve got to get out of gold because it’s going to plummet. And I said, thank you very much. What do you think it’s going to hit? And he said, I don’t know, but it’s going to go down and I said, great, because I’m going to be planning on buying more. Because I just don’t believe that the ‑‑ with what happened, Mark, this is what’s so confusing. You followed the currency stuff that was happening over the weekend with Japan and Switzerland and France and Australia last week, with China and the currency, right?

ALBARIAN: Yes, all the currencies.

GLENN: Okay.

ALBARIAN: It’s interesting because we’ve seen the dollar at a level now that, with all that’s going on in the world, everybody’s now saying the U.S. currency is the safest.

GLENN: Well, but China is making moves to basically set up, I think, the ultimate undermining of the U.S. dollar, and it’s only a matter of time I think before the dollar collapses or interest rates have got to be jacked up to be able to hold this thing together which would eventually mean our demise. But it doesn’t make sense. Those things don’t go together.

ALBARIAN: Yeah, I think that’s a great point. Lots of things don’t go together. So if gold is going down today, wouldn’t you expect that the stock market might be going up? And the Dow’s down over 80 points. I mean, how is everything going down at one time? And China looking for world dominance? Clearly that’s an issue, and it’s hard for us to be on an equal footing with China when we negotiate with them because we owe them so much money. When you owe somebody a lot of money, you have to be nice to them. You’re not really equal when you negotiate.

GLENN: One of my guys came in this morning and said that he had read a thing that it showed, it was a chart of all of the central banks, that all of the central banks in the last five years have made significant increases in their gold reserve. True or false?

ALBARIAN: True.

GLENN: By an unusual amount or is this the usual you kind of fluctuation?

ALBARIAN: Well, actually the usual thing is one of the things that caused gold to stay low for all those years was that the central banks were actually selling gold. They weren’t adding to their reserves. They were selling. And there was an agreement between the central banks, they were selling so much gold, it was hurting the gold miners. It was hurting the actual workers in South Africa that needed a job because they were in risk of closing mines. So they all got together around gold prices of $300 or even a little less and said, you know, let’s stop selling gold so quickly. And they all agreed to do that.

Now, independent of that, we saw the financial crisis in 2007, 2008, 2009. And from that point on, central bankers have been adding to their gold reserves. People would have been happy if they just agreed to sell normally, but they went the other way. They started buying. And the people that have the most gold and the most power to move the gold market in my opinion are the central bankers.

GLENN: Do you think there’s any gold in the United States?

ALBARIAN: I would guess that there’s gold at Fort Knox. I would guess that there’s gold at the Federal Reserve. I would guess also that there’s a lot that I don’t know and that we don’t know and they are not telling us.

GLENN: Do you ‑‑

ALBARIAN: Because if it was completely transparent, they would call in one of the big four accounting firms and they would just do an audit and they would take pictures.

GLENN: Why would Illinois last week begin the passage of a bill to log everybody’s gold, to make in the State of Illinois that if you have gold, you need to report it to the State of Illinois so they know exactly how much you have of physical gold?

ALBARIAN: I don’t know where that bill went but I’ll tell you I’m very concerned when you get government asking that question. Even if it was just a proposed bill, even if it gets shot down quickly, that makes you nervous. I think an equally important question is why would the State of Texas be so concerned about getting their gold physically in their state. If the State of Texas doesn’t trust somebody else to hold their gold, then I think that my view over all these years has probably been right: The people ought to buy gold and put it someplace safe and have complete control over it. Real gold, not paper, hold it themselves.

GLENN: All right. Thanks a lot, Mark. I appreciate it.

ALBARIAN: Thank you, Glenn.

GLENN: All right. Again, full disclosure. He is a sponsor. He is a friend of mine, but he’s also a sponsor of the program and that was not a commercial. You ‑‑ I mean, it’s ‑‑ God only knows what is going to happen. You know, if you had gold, I’d keep it to yourself. I would keep it to yourself. Now, in the future is it going to be ‑‑ I mean, do you see up on TheBlaze they have a new story out, where is it, hungry for some Hunger Games: See the first trailer released for the second film? How is it nobody can see that you’re headed toward that kind of a world? I’m not saying that we’re going to be hunting each other, but you’re headed towards a rule ‑‑ a world where you’re ruled over. I mean, is it un ‑‑ is it unreasonable to say right now that if the economy collapsed that the government could say, “If you trade in gold, if you…” I mean, they are already doing it. They are arresting you if you have vegetables and you are trying to sell your farm fresh vegetables to a neighbor. Remember, they went in, where was it, in Colorado where they went with bleach to destroy all of it.

STU: Yeah.

GLENN: I mean, is it really that so unusual that we ‑‑ I mean, we’re headed toward some really spooky things if we don’t wake up.

  • http://www.artinphoenix.com/gallery/grimm snowleopard (cat folk gallery)

    So the question I have to ask – are we seeing a strategic move by the government of China to undermine the American dollar as the international standard? Or is this just an adjustment of normal market dynamics?

  • http://www.facebook.com/thatdrumguy Chris Dupuis

    Glenn, I’m not sure you’re allowed to have an opinion on the gold market, where Goldline is one of your biggest advertisers.

  • http://www.facebook.com/wbaltzley Walter Ignatius Baltzley

    So…the CENTRAL BANKS are able to manipulate the value of GOLD?  After seeing this, does anybody still think that a GOLD STANDARD will prevent manipulation of the money supply?  

  • http://www.facebook.com/jerry.kountz.3 Jerry Kountz

    I say if their selling and you can afford to “which is NOT me!” Buy it! Gold and Silver are real money! Remember when our coins were real money not to long ago? The big boss wants to buy your gold so he scares you into selling it! I bet George Soros is buying it up!

  • http://www.facebook.com/jerry.kountz.3 Jerry Kountz

     It’s part of the New World Order! They want you to sell so THEY can buy it up! It’s part of obama/soros & the New World Order plan to buy it all!

  • Anonymous

    If you are simply out about the investment side of gold you haven’t quite understood the overlying reason you need this metal we all know thing’s are not right . Just what if your children will need it more than you ever ever thought !
    They sure seem to be trying to make it as if nothing is yours it just might get them out of very dangerous situations .IF you can hold on,  if not it’s yours sell it ,either way don’t make a hasty decision.
    Be careful something sure doesn’t fit with any of this,have things really gotten that much better ?

  • Anonymous

    Panic! My biggest sponsor is plummeting. It must be a conspiracy!

  • Anonymous

    That’s an insane Idea? You might be Schizophrenic 

  • Anonymous

    Stay just like that it’s perfect boob,get a clue.

  • Anonymous

    http://www.paulcraigroberts.org/2013/04/13/assault-on-gold-update-paul-craig-roberts/

    Read this article to see how the Federal Reserve and Goldman Sachs has manipulated down the price of gold by using naked shorts. This should be criminal if it isn’t already. Where are the so called professional journalists?

    Glenn….get your research folks working on this story pronto!

  • http://www.facebook.com/megyn.kelly.16 Megyn Kelly

    Hey, I have a whole bunch of ________, let’s start a huge marketing campaign that convinces everyone else they need to buy a whole bunch of _______. We will use fear tactics and promise them financial security/easy wealth if they buy _________. Then when it reaches it’s peak demand, I will sell off all my ________ and prices will sink. But I will keep the hype going until my accomplices have enough time to get out. Then nobody will want to buy  _________, I will have all their money, and they will have a worthless ________. History repeats itself, over and over, and over…..

    We can learn so much from Beanie Babies. You wouldn’t give me a dollar for a Beanie Baby now. If I told you it would be worth $100 a year from now, then I could easily get $50 out of you.

    I wouldn’t trade a can of green beans for a brick of gold should your tales of world civilizations collapsing come true.

  • http://twitter.com/fawnday Dawn Brayton

    If EVERY currency in the world is plunging then governments must be getting ready to replace anything monetary. Possibly some sort of credit point thing or cash with a chip inside that acts like credit. It’ll let people who have that certain coin what it gets used for. So what gets bought can also have a chip in it that can be tracked. Consumerism will be like a preferred customer card on steroids That’s what sounds like might be happening.

  • http://www.facebook.com/megyn.kelly.16 Megyn Kelly

    Hey, I have a whole bunch of ________, let’s start a huge marketing campaign that convinces everyone else they need to buy a whole bunch of _______. We will use fear tactics and promise them financial security/easy wealth if they buy _________. Then when it reaches it’s peak demand, I will sell off all my ________ and prices will sink. But I will keep the hype going until my accomplices have enough time to get out. Then nobody will want to buy  _________, I will have all their money, and they will have a worthless ________. History repeats itself, over and over, and over…..
    We can learn so much from Beanie Babies. You wouldn’t give me a dollar for a Beanie Baby now. If I told you it would be worth $100 a year from now, then I could easily get $50 out of you.

    I wouldn’t trade a can of green beans for a brick of gold should your tales of world civilizations collapsing come true.

  • http://www.facebook.com/megyn.kelly.16 Megyn Kelly

    That’s what they always say when they run out of logic. “ok, your loss”

  • Anonymous

    I think Jerry is on to something here John. Remember that Germany requested its stored gold from France and the U.S. recently. So the U.S. must deliver physical gold to Germany. If it doesn’t physically have it, they have to buy it on the open market. Logic says it’s better to buy gold at $1,300 or lower during a contrived panic, than at the approx. $1,600 price it was before the Fed dumped 500 tons or 16 million oz. of “paper gold” on the market to depress prices.
     
    Still think Jerry is insane? Perhaps you are naive and uninformed.

  • Anonymous

    Absolutely what a shame huh some will turn for the smallest fear scheme ! GOD BLESS

  • Anonymous

    Many times I’ve lied many times I’ve listened many times I’ve wondered how much there is to know many dream’s come true and SOME have silver lining’s i’ll look for my dream’s and a pocket full of gold maybe is a word that only leave’s ya guessin’ I guess it’s the kind of thing that YOU really ought to know.
    Mellow is the man who knows what he’s been missing many many a man(women) can’t SEE the open road .
    Most who have gold have much more than just gold something to ponder !

  • Anonymous

    Gold and silver aren’t money.  They are commodities.

    Can you imagine the reaction if the dollar were to decline 15% in two days?  I wonder what Mr. Beck would be saying on his website then.  Although I don’t wonder very much.

  • Anonymous

    it is now 12/19/13 this fraud hipster huckster really hurt a lot of weak brainwashed viewers, not that anyone deserves to be ripped off but they really did get ripped off not that gold is down 49% this year but it gets worse stock market is up 30% and at a all time high. there is not a tree high enough to hang glenn beck really should be in prison