Friday, March 15, 2019

The Only Panel Talk On Gold And Mining You’ll Need

Rick Rule, CEO of Sprott U.S. Holdings, joins forces with Amir Adnani, chairman of GoldMining and CEO of UEC, in this panel discussion on the hottest headlines of the gold industry today.

Topics range from the Barrick-Newmont takeover deal, Trump’s third year in office, and their outlook on gold and uranium prices.

- Source, Kitco News

Monday, March 11, 2019

Warren Buffett Doesn’t Need Gold, But You Do

An investor on the caliber of Warren Buffett most likely doesn’t need extra insurance on his portfolio, but that doesn’t mean that it’s not good practice to own gold as a hedge, said Rick Rule, CEO of Sprott U.S. Holdings. 

“Were I as smart as Warren Buffett, were I as disciplined as investor and as good an analyst, I probably wouldn’t need gold either. Part of what gold does is it protects us from our own worst instincts,” Rule told Kitco News on the sidelines of the PDAC 2019.

- Source, Kitco News

Saturday, March 2, 2019

What The Latest Numbers Mean For Gold And Silver

“There are lots of reasons to worry about where we’re all going. We’ve seen those downgrades, in Europe, of the GDP. We see Chinese data that gets weaker all the time. 

We see weakness in the U.S. in terms of industrial production and PMIs and things like that. So, yeah, I think that stocks could easily roll over.”

- Source, Sprott Money

Tuesday, February 26, 2019

The Magic Palladium Bullet

Over the past few months, we've written frequently about palladium and the threat it poses to The Banks' Fractional Reserve and Digital Derivative Pricing Scheme. As palladium prices are continuing to rise, we thought it best to explain this dynamic again today.

A few years back, my friend Max Keiser coined the phrase "buy silver, crash JP Morgan". Back then it was hoped that silver could be a "magic bullet", where physical demand would expose and crash the current fraudulent pricing scheme. And it nearly worked, too, as a massive Commercial short squeeze in 2011 nearly led to a runaway price spike. Only through the direct, official intervention of the CFTC and CME was price reversed and the crisis averted.

In the eight years since, JP Morgan was approved to open their own COMEX silver vault, and they now store nearly 150,000,000 ounces of silver for use against any potential price squeeze. So at this point, the idea of crashing or breaking The Banks through silver seems unlikely. On any sustained future rally, JPM can simply deliver their silver stockpile in an unwind of their short position and, for them at least, a repeat of 2011 can be avoided. Here's just one article that we've written on this subject:

But that's just silver. The Banks are still exposed through the identical pricing schemes that are applied in gold, copper, platinum and... palladium. And this is where 2019 could get very interesting.

Since last August, a physical supply squeeze has been evident in palladium. How do we know that this situation is due to a physical metal deficit? 

Two things: 

1. Extraordinarily high lease rates for physical palladium in London, where one-month lease rates in 2019 have occasionally been in excess of 20%.

2. Full backwardation of the futures board in New York. Backwardation (where spot prices exceed future prices) is extremely rare in the commodity sector, particularly in the precious and industrial metals, and it is almost always indicative of a supply squeeze. See the chart below.

And you can see this on the daily price chart too. Note that the advance in palladium is NOT some sort of parabolic speculative blow-off. Instead, what you see below is an unrelenting grind higher due to an ever-tightening vise of dwindling physical supply.

Having established that this price rally is primarily due to a shortage of physical palladium, please take a moment to ponder this next bit of information...

For COMEX silver—which was hoped to be the "magic bullet"—there are currently 296,000,000 ounces of silver stored in the COMEX vaulting system. This compares to a total COMEX silver contract open interest of 220,000 contracts. At 5,000 digital ounces/contract, the ratio of leverage of digital to vaulted physical is3.72 times. Stated another way, there are 3.72 ounces of tradable silver exposure for every one physical ounce in the vaults (both eligible and registered).

For COMEX gold, there are reported to be 8,221,512 physical ounces in the COMEX vaults versus a total open interest of 480,000 contracts, representing 48,000,000 ounces of digital gold. That makes the ratio of digital to physical leverage 5.85 times.

Now check this. For COMEX palladium, there are reported to be just 42,583 ounces in the vaults. Again, that's BOTH eligible AND registered. However, there are currently 28,846 contracts of open interest. At 100 digital ounces per contract, that's 2,884,600 ounces of digital palladium exposure. Applying the same math as above, we find that the COMEX palladium market exists upon leverage of 67.3 times. Hmmmm... how about that?

What's the point? In 2019, do you want a "magic bullet" and something that could lead to a force majeure declaration and exposure of The Banks' fraudulent schemes? Watch palladium! What do you suppose will happen if, sensing Bank blood in the water, the "Bond Vigilantes" of yesterday become the "COMEX Vigilantes" of tomorrow? That's the point.

Should the LBMA/COMEX palladium market fail and collapse, sensible people and institutions around the world will be correct to conclude that gold and silver operate under an identical pricing scheme. If there's not enough physical palladium to cover the Banks scheme, and thus a price squeeze, then there's not enough physical gold and silver either.

And there, my friend, is your magic bullet.

Of course, The Banks may still be able to wriggle off the palladium hook. Perhaps they can collapse price through unbridled derivative issuance? Maybe a fresh supply of palladium will suddenly be unearthed? But if not, it's hard to see how this doesn't end in chaos for The Banks. And if that chaos extends to gold and silver...

This year and next are already pegged to provide the best gains for gold and silver investors since 2010-2011, as central banks capitulate, interest rates are cut and QE programs re-started. Now throw in some market collapse and possible force majeure declarations, and you've suddenly got a recipe for considerable price gains in the months ahead.

- Source, Craig Hemke via Eric Sprott's, Sprott Money

Friday, February 22, 2019

When The World Decides To Get Into Gold, The Price Will Go Up

“I think I mentioned a couple of times recently… gold used to kind of get hammered big time and then sort of stay down there. 

And it’s interesting, now, when we see these declines that happen quickly. One, they’re not major. 

They may be five or seven dollars. And then it seems to rebound quickly. And I get the sense that they meet up with a physical buyer. 

You know, that there’s a physical buyer there, and the game might very well be ending. Which would be the best news that could ever happen for our side.”

- Source Sprott Money

Saturday, February 16, 2019

Eric Sprott: The Biggest Factors Affecting Gold & Silver in 2019

Eric Sprott discusses factors that are currently influencing the precious metals markets and looks ahead to an interesting year for the mining shares.

- Source, Sprott Money

Tuesday, February 12, 2019

Eric Sprott: Surging Demand for Physical Gold & Silver

Eric Sprott discusses how surging physical demand for gold and silver will impact prices in the year ahead.

- Source, Sprott Money

Monday, February 4, 2019

Craig Hemke & Eric Sprott: You Can't Eat Gold

Eric Sprott says some interesting things are happening in gold & silver, and he says that most of the incoming precious metals information is good. 

Here’s why… 

Eric Sprott interviewed by Craig Hemke As we barrel towards the end of the month, it’s been a positive week in precious metals, with slight gains since last Friday. 

Eric Sprott joins us once again to break down all the gold and silver news you need heading into the weekend.

Monday, January 28, 2019

Eric Sprott: Big Things Can Happen in 2019, Here's Why

We’ve been aided and abetted by the tremendous weakness that was experienced in the stock market… 

It’s instructive, certainly for people in the precious metals business, because even though we’ve had a bear market rally here, I suspect it will roll back over again. I think it’s interesting that gold and silver—particularly silver—have fared very well, even while the markets rallied. 

So, I don’t know that the precious metals markets are buying into this bear market rally that we’re going through. So, lots of good signs for great things to happen.

Thursday, January 24, 2019

Why You Need to Own Gold Bullion: Everything Is Going Down

More important than the gold going up is what else is going on. 

It’s funny how the macro-theory all along suggested that when the Fed stopped their quantitative easing and rates went up—but particularly the quantitative easing, where they go from quantitative easing to quantitative tightening—that one should have expected the stock market to roll over. 

Because the whole 2009 to 2018 was essentially a fraud created by the Fed, by doing things that no one in the history of the financial world had ever heard about before: printing money and having zero or negative interest rates. 

Well here we are. Now we’re doing the opposite. Are we surprised that stocks are going down? Well, we shouldn’t be.

- Source

Sunday, January 20, 2019

Bizarre Things Happening In Gold and Silver

We have these recent rallies that we get early in the mornings, only to find that they’ve faded away. 

Which is typical of a bear market, right? It used to be that the market would be weak, and then along comes 2:30 in the afternoon, and from 2:30 to 4:00, things would go up. Now, from 2:30 to 4:00, things go down. 

Which is what you would expect in a bear market, when people are seeking liquidity.

- Source