Saturday, January 24, 2015

Forget The Propaganda, Things Will Quickly Unravel As We Enter 2015

The U.S. is by far the world’s largest debtor, and the fact that it still retains its world reserve currency status is the primary reason that its paper retains any value whatsoever at this point.

So what we’re faced with right now is this recurring propaganda that is being reported in the United States that the U.S. economy is growing strongly and that job creation is robust. What utter rubbish. Everything is being falsified to keep this myth alive and keep the U.S. dollar and the bond market afloat.

So for somebody to say that this is the only game in town really shows the depth of stupidity that’s on display today. Part of this plan is the relentless suppression of the gold and silver prices. I think it’s reaching new levels of absurdity as we speak. There is no justification for the price action that we are seeing, even today when prices fell sharply as soon as the London market closed.

The reason for the continued manipulation is because gold and silver represent the canaries in the coal mine. If they were really reflecting the truth this whole myth about low interest rates and everything being fine would be destroyed. I think there is infinitely more evidence coming out daily that the offtake in the East — India, China Russia, etc — is continuing to grow.

In the meantime, what remaining gold is left in Western vaults continues to be depleted. So I believe this suppression is very much in the final stages. If that is the case, I think the subsequent price explosion will be something to behold.


- John Embry of Sprott Assets, via King World News

Wednesday, January 21, 2015

Billionaire Sprott’s Business Partner Reveals His Thoughts For 2015

"My suspicion is that 2015 will give us more of the same. Meaning the global economy is flat on its back and it will stay there for quite some time. 2015 will bring small pockets of prosperity, but the prevailing trend towards increased government and increased government debt will continue to strangle the overall economy.

One would hope, you’ll note that I used the word ‘hope’ again, that the big thinkers of the world are right and that I’m wrong. I understand the hope people have that Western central planners can print trillions of dollars of counterfeit currency units and that liquidity will overwhelm concerns of solvency. It certainly has worked for the last 2 or 3 years.

It would be wonderful to have a set of circumstances where contrived liquidity was the antidote for the sins of the past decade. I just have a very difficult time seeing that come true.”


- Source, Rick Rule via a recent King World News interview

Thursday, January 15, 2015

The Fed Has Lost Control of the Bond Market!


 
The CEO of Sprott Asset Management, Eric Sprott, says, We're buying more bonds on a daily.

Monday, January 12, 2015

Bankrupt governments will break their promises




Eric Sprott, Chairman of Sprott Asset Management, and James Turk, Director of the GoldMoney Foundation, talk about Eric's book and how his analysis shows that the US government, with a GDP of 15 trillion, has liabilities of almost 80 trillion and that these promises will be broken just as the Greek government is breaking its commitments.

Saturday, December 27, 2014

Banker Suppression will cause Surge in Investment Gold Demand


Listen to Eric Sprott share his views on the surge in Asian investment gold demand, the positive movement in physical gold demand around the world, and the possible impact of the Swiss Referendum on the physical gold market.

- Source, Sprott Money

Wednesday, December 24, 2014

The Biggest Win Will be if There is a Gold Delivery Failure

We see almost 60 tons a week being delivered on the Shanghai Gold Exchange. Well, you start annualizing 60 tons a week you’re talking 3,000 tons a year now. We saw 94 tons of gold go into India in September. We saw the Russian Central Bank buy 37 tons of gold in September. I mean I could come up with numbers that might suggest that we’ve got 400 tons a week of demand. And we only got 230 tons a week of mine supply. And I’ve only gotten to three data points. I haven’t even gone to the rest of the world.

We’ve now created a situation unfortunately in the market where between high frequency trading and algorithms and interference by the planers they can make things happen that looks like everything is OK. And it’s the "OK" part where I think we can really relate to gold not being allowed to go up. Because that's the canary in the coal mine. If gold was above $2,000 we’d all be wondering: What the hell is going on here? And so they haven’t allowed it to happen.

But by suppressing the price -- and one of the great things about a price of $1,100/oz is that you can buy a lot of gold at $1,100 versus $1,900 -- you can buy almost 50%-60% more gold than you could three years ago with the same amount of money. And you can buy 3x the silver. With the same amount of money!

So, they’re just making the market so small that sooner or later somebody is going to figure it out. And take it on. It’s just such a small market. Imagine if the whole inventory is only $15 billion. What the hell is $15 billion in this day and age? It’s nothing. And a lot of that inventory is already held by people like us and like-minded people where it’s not coming back on the market. So, I’m kind of very hopeful that things are going to work out for us. I know it’s just been a depressing time, in particularly for people like myself and our customers who are in the mining stocks -- the miners have just been eviscerated here. But, by the same token if the market comes back to its sense and gold and silver move up from here, there’s going to be a lot of money made in precious metals equities.

I think a true price recovery has got to come from the physical market first. When the mint says they don’t have any more silver coins, that's a good sign there’s more demand than supply. Maybe folks start figuring it out then.

To me, the biggest win will be if there is a delivery failure. If somebody says we were promised some gold we didn’t get it. And that could happen -- I mean we just can’t have China continue to buy 60 tons a week. That's impossible.

- Source, Eric Sprott via Peak Prosperity

Sunday, December 21, 2014

Global Gold Demand Is Overwhelming Supply


Precious metals have had an especially tough go of it over the past month. Both gold and silver are back in price territory last seen in 2010.

Eric Sprott returns to the program to discuss the facts as we know them in this market, and what's likely to happen from here. Specifically, he explains the tremendous imbalance currently seen between global supply and demand for precious metals. In his view, prices will have to correct upwards -- prodigiously -- to bring the two back in alignment.

- Source, Peak Prosperity

Thursday, December 18, 2014

Gold Demand, The Economy & Precious Metals Open Interest


Listen to Eric Sprott share his views on gold demand in China and India, a waning global economy despite US economic data, an update on the Ebola crisis, and the open interest in the precious metals market.

- Source, Sprott Money

Monday, December 15, 2014

The Swiss Referendum & The $1.5 Billion Dump of Gold Futures


Listen to Eric Sprott share his views on the current shortage of coins, outstanding gold and silver contracts on the Comex, the dump of gold futures this week, the Swiss Referendum, and the gross demand of gold from India and China.

- Source, Sprott Money

Friday, December 12, 2014

Carnage in the PM Market & Economic Illusions


Listen to Eric Sprott share his view in the drastic slump of gold and silver, the contrived positive economic outlook of non- recovery, and an update on the spread of the Ebola virus.

- Source, Sprott Money

Tuesday, December 9, 2014

Swiss No Vote on Gold Referendum is License to Print Money

People own physical gold and silver as a hedge against the ongoing global debasement of fiat paper currencies in the world. However, for people that own paper gold and silver, they will be settled in cash at the very time they will need this protection.

I believe this inflection point is rapidly approaching and it may explain to some extent the recent bizarre price action in gold and silver. Part of the reason for the extreme downdraft in the metals was related to the failed Swiss Gold Initiative. The Western central planners wanted to do everything they could to ensure that would not pass.

I gave that initiative zero chance of passing from the outset, and I said as much in my article several days before the vote took place. I think the Swiss vote was very telling in that it was so overwhelming. The Swiss gave license to the Swiss National Bank to continue to debase the currency.

Outside of the Germans, the Swiss from a historical perspective stand for financial rectitude. And if the Swiss are ‘all-in’ in favor of more debasement, I think this is a very powerful signal that we are headed for hyperinflation on a global basis in the not-too distant future.

- John Embry of Sprott Asset Management via King World News

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