Sprott's Call for Silver Producers to Hold Back Metal Strikes Chord

Sprott says he has had some positive responses to his letter from major producers. "I know it's under consideration by a lot of people," he said.

"I think the price should already be substantially higher," Sprott said. "The trade should be 16:1 gold:silver ratio. That implies that at $1,600/oz gold, silver should be $100/oz. At $3,200/oz gold, silver should be $200/oz. The outlook for gold is phenomenal and silver is going to go up even faster. That is why I think that this next decade will be the decade for silver," Sprott predicted.

- Read the full article here:

http://www.theaureport.com/pub/na/12083

Positioning To Profit From The Pan Asia Gold Exchange

Some other analysts such as Eric Sprott claim that if individuals took delivery of just 5% of the traded contracts it would be enough to deplete COMEX of its entire inventory.

- Read the full article here:

http://seekingalpha.com/article/312344-positioning-to-profit-from-the-pan-asia-gold-exchange

Eric Sprott Fights PM Manipulation Fire With Fire: Calls Silver Producers To Retain Silver Produced As "Cash"

In what is likely the most logical follow up to our post of the day, namely the news of the lawsuit between HSBC and MF Global over double-counted gold, or physical - not paper - that was "commingled" via rehypothecating or otherwise, we present readers with the monthly note by Eric Sprott titled "Silver Producers: A Call to Action" in which the Canadian commodities asset manager has had enough of what he perceives as subtle and/or not so subtle manipulation of the precious metal market, and in not so many words calls the silver miners of the world "to spring to action" and effectively establish supply controls to silver extraction to counteract paper market manipulation in the paper realm by treating their product as a currency and retaining it as "cash". To wit: "instead of selling all their silver for cash and depositing that cash in a levered bank, silver miners should seriously consider storing a portion of their reserves in physical silver OUTSIDE OF THE BANKING SYSTEM. Why take on all the risks of the bank when you can hold hard cash through the very metal that you mine? Given the current environment, we see much greater risk holding cash in a bank than we do in holding precious metals. And it serves to remember that thanks to 0% interest rates, banks don’t pay their customers to take on those risks today." And the math: "If silver miners were therefore to reinvest 25% of their 2011 earnings back into physical silver, they could potentially account for 21% of the approximate 300 million ounces (~$9 billion) available for investment in 2011. If they were to reinvest all their earnings back into silver, it would shrink available 2011 investment supply by 82%. This is a purely hypothetical exercise of course, but can you imagine the impact this practice would have on silver prices?" And there you go: Sprott 'reputable' entity to propose to fight manipulation with what is effectively collusion, which in the grand scheme of things is perfectly normal - after all, all is fair in love and war over a dying monetary model. Who could have thought that the jump from "proletariats" to "silver miners" would be so short.

- Read the full story at ZeroHedge, here:

http://www.zerohedge.com/news/eric-sprott-fights-pm-manipulation-fire-fire-calls-silver-producers-retain-silver-produced-cash

Canada's Gold Problem, It Has None

"Eric Sprott with Sprott Asset Management discusses how Canada sold all of its gold and how that decision will impact the country."