Wednesday, July 31, 2013

There is a Serious Shortage of Gold

"I think it’s just been one big scheme to try to get people dissuaded from owning gold and to cause supply to come out. As you mentioned, because of it (central planner actions) we have the gold forward rates (for gold) being negative, backwardation, and inventories plunging, all of which have been manifested because there is a shortage of gold.

I believe there is a huge shortage of (available physical) gold. You have had many people comment on that -- Andrew Maguire over in London, who talks about all of the delays in shipments from the the LBMA, and people commenting that perhaps there will be a COMEX failure to deliver.

All of my work tells me that there is a serious shortage of gold on an annual basis. The central banks have supplied it in the past, but they don’t have the ability to supply it anymore. So I think we are getting set up for a big run in gold. It looks like we’ve already seen the bottom and I think we are well on our way here."

- Eric Sprott via King World News: