“I’ll tell you what I think is probably going on. When we look at the bank earnings, they say, well we need volatility in markets to make money. And you need to read through that. Well, why would you need volatility? Because we’re going to get you one way or the other, OK? And if we can get something to go up, great. If we can get something to go down, great. And would I imagine that the banks are on the other side of the trade? Yes, I would. And do they have the money to pull it off? Yes, they do… If you’ve got unlimited pockets, you can make things do whatever you want over a very short term basis.” - Source, Sprott Money
“It’s bad enough being down to 1216 or 1217, wherever we’re trading right now. But it’s the process we’re going through. As you know, I’ve expressed many times before that whenever the commercial banks say, ‘We need volatility in markets,’ well… they’re getting it! And of course they orchestrate it, I believe. And that’s exactly what we’re going through, with not only gold and silver. We see it in the oil market, where it got up to 77 and everyone gets excited, it’s going to break out, and bang! It’s down ten bucks three weeks later… So, here we are. Who knows when we get off of it.” - Source, Sprott Money
President of US Sprott Holdings Rick Rule expects commodity stocks to play “catch up." Many mergers and acquisitions in the mining business are coming, Rule predicts.
Rule says gold and silver have been weak largely because their denominated in the strengthening Dollar.
But the Dollar strength has a good deal to do with the weakness of competing currencies and economies rather than actual strength of the U.S. economy.
However, long term, Rule is optimistic regarding the U.S. economy.
“Between you and I and the listeners: As you know, what goes on in our world seems to have nothing to do with the real world, anyway, and a lot to do with what various traders illegally want to do on COMEX. And obviously they’ve had their way with us here. But it looks like they’ve cleaned everyone’s clock for the last six or eight weeks, and we’re ready to go back up… It looks like we’re in a bottoming process here.” - Source
Gold demand is picking up .. If you want to protect yourself from the vulnerabilities of currencies you have to own gold. Eric joins us from Dublin to discuss the following:
The Global demand for physical gold.
The Impending Trade Wars.
A WWU’s listener’s question on pricing structure of physical metal
Eric discusses the recent gains in gold and silver. In 2016 stocks went up 160% in six months, we could be looking for something similar in the gold sector. It’s a tiny part of the overall market that could explode quickly.
The dollar index had support at the 93 level, but it seems to have broken to the downside. If you look logically at the U.S. financial situation, you will realize that they are bankrupt.
There will be a shocking wake-up call at some point when people realize things are unsustainable and pensions can’t be paid out. There is a lot of chaos happening in politics in Washington, and it doesn’t seem like much will be accomplished.
Foreign countries are going to continue selling U.S. dollar treasuries. It’s not ridiculous to think that gold can’t go many multiples higher. The way the system has evolved is a good reason to hold gold for the next decade.
Eric discusses the ICO frenzy in cryptocurrencies and why he feels that there are too many different versions of cryptos. He prefers gold and silver but thinks cryptocurrencies may have a place especially if they find a way to tie themselves to gold and silver. He expects the market to move similar to 2001 he expects it to be volatile.
He says “I am a huge believer that metals are manipulated by central authorities when they lose control we could be looking at a sustained gigantic bull market in precious metals.”
