Tuesday, April 15, 2014

Eric Sprott on Ukraine Russia War: Capital Controls, Bank Runs, Gold and Silver Forecast

Eric Sprott, CEO of Sprott Asset Management, is bullish on gold in 2014. Sprott says, "On a linear trend line, gold should be $2,100 right now . . . and if you throw on another 15%, you are looking at gold at $2,400 by the end of the year."

On the possibility of a Ukraine/Russia war, Sprott says, "There are two fears. One is war, which would be just devastating for everybody. The other fear is there could be a financial domino fall away from this. Perhaps the banks in the Ukraine, which are already facing tremendous strains because of demands on deposits, fail, and because somebody else is invested with that bank, they end up with a problem. . . . . War could certainly cause a financial domino, but we could have a domino without war. There's a huge bank run going on in Ukraine. The currency is crashing. The ruble is crashing. It is surprising how far all these currencies have gone down. We also experienced a huge decline in the value of the dollar . . . it fell half of one percent in one day."

- Source, USA Watchdog: