This from owner of Miles Franklin to his readers today......interesting point of view I must say.

"So far this week, I have made two large gold purchases. It is possible that gold could drop to $1,350 but with the current price ABOVE the 200-day moving average, which I have been waiting for, the funds should come back into the market to support a move toward $2,000. I am convinced that $4,500 (absolute minimum) is in the cards, so buying around $1,600 with a downside of maybe $250 and an upside of at least $3,000 is an easy decision for me to make. Assuming that gold holds above $1,610 for the rest of the week, I have a lot more money on the sidelines that will be invested in gold - much of which will be stored in an insured and segregated account with Brinks, in Montreal in our joint venture. At THIS TIME, I favor gold to silver because if gold does drop, silver will fall harder and could drop by one-third. Note I said "could," not would. Down the road, I will probably re-balance and "trade" some gold for more silver, but for now, it's gold and more gold.

Here is the most important information I have given you all year! It is a game changer for gold. If true, the bottom is in and let the rush to $2,000 begin.

King World News is a first-class source of information. Their guests are the "who's who" in gold and silver including Jim Sinclair, Richard Russell, Eric Sprott and Jim Rickards. We must assume that Eric King's "London Trader" is a credible source. If the following information is correct, it means the end of the gold manipulation is here, now. Without the bullion bank "leasing" and the leveraged short selling that takes place on Comex, gold will reach its equilibrium free market price. And it will occur in short order. That price, in my estimation is above $2,500 and this will not be the top. This will launch gold into its long-awaited third and final stage in its once-in-a-generation bull market. Where will this end? I really don't know, but you can pick your own ridiculous price. As Jim Sinclair says, people won't believe how high the price of gold will go.

King World News

London Trader - We Are Witnessing a Historic Bottom in Gold

With many investors worried the price of gold could head lower, today King World News interviewed the "London Trader" to get his take on the gold market. The source stated, "The Chinese have continued to take delivery of both physical gold and silver directly from the ETF's GLD and SLV. They are also going directly to producers. Entities are bypassing the COMEX altogether and going straight to gold mining companies. Every single month producers have a certain amount of gold and silver they sell. Normally they sell it to the bullion banks and the bullion banks, of course, leverage this gold and sell up to 100 times that in paper markets to control prices."

"They (bullion banks) hold that little bit of physical gold and claim they are backed up on their position to the CFTC. I have all my large buyers now going to producers and saying to them, 'Look, don't sell it to the bullion banks, we'll buy it from you.' So we are buying directly from the producers and this includes some sovereign entities, which are doing the same thing.

We're struggling to get the physical out of these guys (producers) because they have so many people banging on their door, saying, 'Sell it to us direct.' What these buyers are doing is essentially taking gold out of the system, which means the bullion banks can't leverage that gold anymore.

So this is a huge, dynamic shift that wasn't there before. Now we are working on one other thing. We're beginning to offer them forward contracts. If you are a sovereign entity, what you are saying to these producers, especially on new projects, is, 'Why don't you sell the gold to me in 12 months? Here's the cash, just provide it to me 12 months from now.'

These buyers are now cutting off future gold supply from the bullion banks....

This is a huge, tectonic shift in price dynamics going forward because it is taking price discovery away from the bullion banks. These large Chinese buyers and sovereign entities which are doing this are going to have a massive impact on the market.

Interestingly, so many people are bearish on gold right now and looking for a collapse in the price of gold. They don't understand what is happening in the physical market. The bullish fundamentals I just described to you have enormous implications.

We are making a historic bottom right now. The paper gold, or virtual gold market, has diverged so far from the physical market that it's no longer a credible marketplace. That's the key thing that came out of a very important meeting I was in yesterday where we had some serious players. The people I was meeting with are all on the buy side and have been since the lows last week.

There are massive physical orders, sitting, waiting for any more discounts, and yet everyone else seems to be short. So you have huge fuel for a rally here.

You have to keep in mind this recent plunge was orchestrated with borrowed gold and that borrowed gold is now gone. That's why gold can't go much lower. Any dips in price will be aggressively purchased. As I said earlier, right now we are witnessing a historic bottom."

The London Trader previously told KWN on October 21st that China had purchased a massive amount of physical gold at the lows of the October 20th session. That marked the dead low for the price of gold in October and gold rallied roughly 10% in the following 8 trading sessions. "