Friday, May 31, 2013

Shortage in Gold Becoming Very Acute

“It’s my hypothesis that there was a dearth (scarcity) of gold, and as you know I’ve written many articles questioning whether central banks had any gold left. The conclusion I had was of course that they didn’t because we could see all of this huge new demand coming in.

I’m talking over a 10-year period where I can identify approximately 2,300 tons of net-new demand coming into a market where the supply was staying the same at roughly 4,000 tons a year. I said, ‘Well, this is physical delivery. Where is the gold coming from?’

So it wasn’t a surprise for me to see that all of the sudden these anecdotal items were coming up about how people couldn’t get delivery (of gold). Then we start this decline by various major investment banks saying, ‘Short gold.’ What I think was really happening was that the shortage was becoming very, very acute."

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