Monday, May 25, 2015

Billionaire Eric Sprott Says Stock Market Will Crash, Not Gold

“Well, God knows when the dust settles, but what I’ve expected for a long time now is that the basic fundamentals for gold and silver will win the day. That hasn’t happened yet. It hasn’t happened because entities have financial weapons that they can use on these commodity exchanges and the physical buying hasn’t gotten to a point where we have the failure (of an exchange to deliver)….

But I think it’s reasonably predictable that we are going to have a failure. All of the demand data and the reasons for owning gold have improved. We all know that zero interest rates and printing money has not provided the answer and won’t provide the answer.

The only thing it does is it allows people to speculate on buying securities, but it’s not helping the economies. In fact, there are elements of the economy that are doing worse. The savers are way worse off today than they were before. They are forced to speculate in order to get returns. By speculating they are taking on greater risk.

But there is no recovery. You just have to take the comments of the various people at companies and they keep saying, ‘The consumer is tapped out here and it’s not likely that we are going to experience much growth.’ So how can you have stocks keep going up when there is no commensurate economic recovery?

But the framework for gold and silver and other precious metals to do well is more incredible today than it’s ever been. And you can have (crazy) readings in these (stock) markets — I’ve experienced it. Going into 1999 – 2000, everyone was buying Nasdaq stocks like crazy. Ultimately the day came when the whole index crashed by 75 percent, and that’s what I think is going to happen here. The stock market is going to crack.

- Source, Eric Sprott via King World News