Monday, January 9, 2017

Supply Disruptions Already Happening in Mining Industry


Monday, January 2, 2017

Eric Sprott - US is Broke and By Far the Biggest Issue

Renowned money manager Eric Sprott is still very bullish on physical gold and silver. Why? Sprott proclaims, “The U.S. is broke. We know they’re broke. . . . About a thousand professors have signed up and told Congress you’ve got to deal with this issue, and it is immediately ignored, but it is by far the biggest issue. It’s not just government. It’s corporate pension plans, and state pension plans and all these unfunded obligations where everyone thinks they are going to receive something only to find out that they are not going to receive something. . . . The math is pretty simple. The U.S. is broke, and I don’t want to single out the U.S. Lots of countries are broke. I am sure Japan is broke, and I am sure there are European countries that are broke. We can’t keep extending and pretending and suggesting everything is great. Unfortunately, someone is going to pay the price, and I am not sure when the price is going to be paid. The analogy I use is we all knew ten years ago that Detroit was broke. . . . It was so mathematically certain that you knew what was going to happen. The same thing will happen to the United States.”

How has the economy stayed afloat even though the U.S. is broke? Sprott, who manages nearly $7.5 billion in total assets, contends, “I take it back to NASDAQ 2000 when we had our crash, and there really should have been a normal secular bear market. Along comes the government and their ‘cash for clunkers’ and ‘home buyer tax credit’ and HARPS and TALF and too-big-to fail and printing and ZIRP. This was an elongated process of trying to hold it together. All of this was supposed to have a huge impact on the economy, and yet, we have had negligible growth. In the meantime, all the debts have soared. You have student loan debt, and now students can’t afford to buy a home, so they are all living with their families. You have so many people on food stamps, and you have people taking advantage of the disability fund . . . in the latest statement, it goes broke in a year. . . . This is symptomatic of the problems.”

On The Fed’s constant indecision on whether or not to raise interest rates, Sprott says, “You’re getting a rope-a-dope. One minute you think one thing, and the next minute you think the other. I am having a tough time thinking rates are going to go up (in December). One of the things that all central banks are doing is losing credibility, that people really believe that they know what they are doing. We saw what has happened in Japan the last 25 years, and we see what’s happening in Europe which is what’s happening in the United States. Economic growth, if there is growth, is so anemic . . . and I believe it’s getting worse as this year progresses.”

On his physical gold and silver investments, Sprott says, “I don’t lose any sleep over the price of gold going down in the sense that I believe what I believe. I believe it’s been manipulated. It’s very much about currency and economics of the Keynesian scheme that we’re going to spend money, print money and it’s all going to work. It’s not working. I don’t want to wait and find out the day it falls apart because when it falls apart someday, then it will be too late. I want to be positioned beforehand. I can remember shorting stocks before March of 2000. It was a bit of a rough ride for three months, but my gosh, when it rolled over . . . you have to be a little bit early on things. I believe the last four years have been orderly and created to be difficult. I think gold would have gone up, but they could not stand for it to go up because they were printing money. If you are printing money and gold goes up, everybody figures it out. . . . I’ve been around for a while, and I have the patience to hang in there. I have been a buyer of gold stocks, and so I am hopeful this will end up being a very, very rewarding trade.”

Sprott predicts, “There has to be a collapse. It will be way bigger than 2008. We had a debt problem in ‘07 and ‘08 and the debt has exploded.”

- Source, USA Watchdog

Thursday, December 29, 2016

There Has to be a Collapse Way Bigger Than 2008


Money manager Eric Sprott has not lost his faith in owning physical gold and silver. Sprott contends, “I don’t lose any sleep over the price of gold going down in the sense that I believe what I believe. 

I believe it’s been manipulated. It’s very much about currency and economics of the Keynesian scheme that we’re going to spend money, print money and it’s all going to work. It’s not working. I don’t want to wait and find out the day it falls apart because when it falls apart someday, then it will be too late. 

I want to be positioned beforehand. I can remember shorting stocks before March of 2000. It was a bit of a rough ride for three months, but my gosh, when it rolled over . . . you have to be a little bit early on things. I believe the last four years have been orderly and created to be difficult. 

I think gold would have gone up, but they could not stand for it to go up because they were printing money. If you are printing money and gold goes up, everybody figures it out. . . . I’ve been around for a while, and I have the patience to hang in there. 

I have been a buyer of gold stocks, and so I am hopeful this will end up being a very, very rewarding trade.”

- Source, USA Watchdog

Monday, December 12, 2016

Woe is gold: monetary metal drops below US$1,200 for first time in a year

Donald Trump’s pledge to fire up the American dollar printing machine again is having the same effect on gold as did the previous three programs of quantitative easing since 2008. That added US$4.5 trillion to the global currency inventory and kneecapped what had been a nearly ten-year run in the gold price, which peaked in September 2011 at US$1,923.70.

Despite this glum statistic, financing activity in the gold sector throughout 2016 has charged forward unabated after a four-year lull ended with a sudden jump in the gold price that made the TSX Venture the best performing index in the world in the first six months of the year. Even with the onset of intense weakness since the election of Donald Trump, financing activity and interest hasn’t much subsided — at least, not with industry insiders.

Recent financing bulletins show mining industry luminaries like Eric Sprott, Ross Beaty, George Soros, and others piling into companies ranging from Barrick to newer issuers in the exploration space. So what’s the deal? Wasn’t it a weakening gold price in 2011 that sent these very same tycoons heading for the hills?

Well… not really. Since 2011, at least, Sprott and the company he keeps have been actively accumulating positions in mines and the companies who own them, as the weak prices in gold cause valuations in mines to tumble as well, making it a buyer’s market. By way of example, Sprott acquired an 11.6 per cent interest in Redstar Gold Corp earlier this month. Redstar is currently trading at around $0.13 per share...

- Source, Financial Post, read more here:


Friday, December 2, 2016

Eric Sprott Warns If India Bans Gold, Silver Will Go CHAOTIC



Eric Sprott Breaks Down Today’s Jobs Report & MAJOR MOVES In Bonds, Interest Rates, Gold, & Silver.
Sprott Warns If Modi Bans Gold, India Will MASSIVELY Turn to Silver, Sending the Global Silver Market Into CHAOS…


Monday, November 28, 2016

Eric Sprott: If They Take This Down Low Enough…


“It’s Just Been A HORRENDOUS Month.”
Will Gold and Silver Prices Begin A Massive Rally in 2 Weeks When the Fed Finally Hikes Rates, Just Like in December of 2015?
Eric Sprott On the PAIN in the PM Markets, & If A Bottom Is Near.


Wednesday, November 9, 2016

Sprott’s Rick Rule: Investors Now Need to Look Beyond Gold


Sprott U.S. Holdings Inc. President and CEO Rick Rule, in this interview with SmallCapPower at the recent Mines and Money Americas conference, cautions investors about chasing the hot gold sector and instead look at some surprising commodity “pariahs.” Regardless, he believes life has gotten easier for ‘gold bugs’ of late and that quality projects will be taken over at “eye-popping” prices.


Friday, November 4, 2016

Eric Sprott Explains Why A Trump Win Will Be Very Pro Gold



“Trump Would Be Very Good For Gold” Eric Sprott Breaks Down the Presidential Election’s Impact on the Gold and Silver Markets When the Elite Are STUNNED Next Tuesday…

- Source, Silver Doctors