Wednesday, May 1, 2013

I Suspect Sovereigns Have Been Significant Buyers

“ We've obviously had a bit of a mini-panic on the buy side here. People have said, ‘Oh my God, I've got to own some gold.’ It’s symptomatic of what’s going on throughout the world. One thing we haven't seen yet, Eric, is what did the sovereigns do in April? But I suspect that they will have been significant buyers.

As Andrew Maguire has told you, he thinks something like 1,000 tons has gone from the LBMA over to Asia. There is no room for people to buy an extra 1,000 tons, which happens to represent almost 50% of the non-China, non-Russian market. I mean how do you buy an extra 50% more of a market and not have the price go up?

I think it was Japan where people were paying $500 above the spot price of gold. So it just shows you that the desire to own it, and perhaps the beginning of a real threat of shortages could have quite a significant impact on the precious metals markets.”

- Eric Sprott, via a recent King World News interview, read the full interview here:

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