Saturday, December 27, 2014

Banker Suppression will cause Surge in Investment Gold Demand

Listen to Eric Sprott share his views on the surge in Asian investment gold demand, the positive movement in physical gold demand around the world, and the possible impact of the Swiss Referendum on the physical gold market.

- Source, Sprott Money

Wednesday, December 24, 2014

The Biggest Win Will be if There is a Gold Delivery Failure

We see almost 60 tons a week being delivered on the Shanghai Gold Exchange. Well, you start annualizing 60 tons a week you’re talking 3,000 tons a year now. We saw 94 tons of gold go into India in September. We saw the Russian Central Bank buy 37 tons of gold in September. I mean I could come up with numbers that might suggest that we’ve got 400 tons a week of demand. And we only got 230 tons a week of mine supply. And I’ve only gotten to three data points. I haven’t even gone to the rest of the world.

We’ve now created a situation unfortunately in the market where between high frequency trading and algorithms and interference by the planers they can make things happen that looks like everything is OK. And it’s the "OK" part where I think we can really relate to gold not being allowed to go up. Because that's the canary in the coal mine. If gold was above $2,000 we’d all be wondering: What the hell is going on here? And so they haven’t allowed it to happen.

But by suppressing the price -- and one of the great things about a price of $1,100/oz is that you can buy a lot of gold at $1,100 versus $1,900 -- you can buy almost 50%-60% more gold than you could three years ago with the same amount of money. And you can buy 3x the silver. With the same amount of money!

So, they’re just making the market so small that sooner or later somebody is going to figure it out. And take it on. It’s just such a small market. Imagine if the whole inventory is only $15 billion. What the hell is $15 billion in this day and age? It’s nothing. And a lot of that inventory is already held by people like us and like-minded people where it’s not coming back on the market. So, I’m kind of very hopeful that things are going to work out for us. I know it’s just been a depressing time, in particularly for people like myself and our customers who are in the mining stocks -- the miners have just been eviscerated here. But, by the same token if the market comes back to its sense and gold and silver move up from here, there’s going to be a lot of money made in precious metals equities.

I think a true price recovery has got to come from the physical market first. When the mint says they don’t have any more silver coins, that's a good sign there’s more demand than supply. Maybe folks start figuring it out then.

To me, the biggest win will be if there is a delivery failure. If somebody says we were promised some gold we didn’t get it. And that could happen -- I mean we just can’t have China continue to buy 60 tons a week. That's impossible.

- Source, Eric Sprott via Peak Prosperity

Sunday, December 21, 2014

Global Gold Demand Is Overwhelming Supply

Precious metals have had an especially tough go of it over the past month. Both gold and silver are back in price territory last seen in 2010.

Eric Sprott returns to the program to discuss the facts as we know them in this market, and what's likely to happen from here. Specifically, he explains the tremendous imbalance currently seen between global supply and demand for precious metals. In his view, prices will have to correct upwards -- prodigiously -- to bring the two back in alignment.

- Source, Peak Prosperity

Thursday, December 18, 2014

Gold Demand, The Economy & Precious Metals Open Interest

Listen to Eric Sprott share his views on gold demand in China and India, a waning global economy despite US economic data, an update on the Ebola crisis, and the open interest in the precious metals market.

- Source, Sprott Money

Monday, December 15, 2014

The Swiss Referendum & The $1.5 Billion Dump of Gold Futures

Listen to Eric Sprott share his views on the current shortage of coins, outstanding gold and silver contracts on the Comex, the dump of gold futures this week, the Swiss Referendum, and the gross demand of gold from India and China.

- Source, Sprott Money

Friday, December 12, 2014

Carnage in the PM Market & Economic Illusions

Listen to Eric Sprott share his view in the drastic slump of gold and silver, the contrived positive economic outlook of non- recovery, and an update on the spread of the Ebola virus.

- Source, Sprott Money

Tuesday, December 9, 2014

Swiss No Vote on Gold Referendum is License to Print Money

People own physical gold and silver as a hedge against the ongoing global debasement of fiat paper currencies in the world. However, for people that own paper gold and silver, they will be settled in cash at the very time they will need this protection.

I believe this inflection point is rapidly approaching and it may explain to some extent the recent bizarre price action in gold and silver. Part of the reason for the extreme downdraft in the metals was related to the failed Swiss Gold Initiative. The Western central planners wanted to do everything they could to ensure that would not pass.

I gave that initiative zero chance of passing from the outset, and I said as much in my article several days before the vote took place. I think the Swiss vote was very telling in that it was so overwhelming. The Swiss gave license to the Swiss National Bank to continue to debase the currency.

Outside of the Germans, the Swiss from a historical perspective stand for financial rectitude. And if the Swiss are ‘all-in’ in favor of more debasement, I think this is a very powerful signal that we are headed for hyperinflation on a global basis in the not-too distant future.

- John Embry of Sprott Asset Management via King World News

Saturday, December 6, 2014

This Paper Ponzi Scheme is Now in Serious Trouble

The mauling that gold and silver experienced on Friday represents criminal activity in my opinion. The Friday after Thanksgiving is traditionally one of the quietest trading days of year, and yet on that day the HUI declined nearly 8 percent. Gold and silver equities remain the least expensive equities on the planet.

For gold and silver and the shares to be blasted like that post-holiday was very telling. That action was preposterous. To me it reveals that the Western central banks and their bullion bank accomplices are in deep trouble when it comes to gold and silver.

Western inventories have been sharply depleted as supplies continue to migrate to the East. The end of the Indian restrictions is also another major development. This will mean even more gold heading from West to East, putting additional pressure on the central planners to release the price of gold.

This will create enormous trouble for Western planners in the paper gold and silver markets. There are arguably more than 100 paper claims on each remaining ounce of gold and silver in the West. This paper Ponzi scheme is now in serious trouble.

- Source, John Embry of Sprott Asset Management via King World News

Thursday, December 4, 2014

Economic Slump in all Economies & Disingenuous PM Markets

Listen to Eric Sprott Share his Views on Ebola, the Economic Slump Around the World and the Disingenuousness in the Precious Metals Markets.