Eric Sprott: Everything I See In The Physical Markets Is Very Optimistic

“I think of all these people who live in all these countries where their currencies are getting hammered, whether it’s the Brazilians, the Indians, the Turks, the Iranians. 

We’re getting more and more people all the time, all of whom have a disposition towards gold anyway. And I read this morning that the Asian demand is very robust. 

Well, you know what? I’d expect it to be robust. I mean, the Indians consume 1,000 tons a year out of roughly 3,000 tons mined. What happens if all of a sudden they’re witnessing their currency weakening? 

They buy 50% more. My God, the effect on the physical market would be astounding!”

- Source, Sprott Money

Eric Sprott: It’s A Problem That’s Not Going To Go Away

“You know the debts don’t go away, right? They don’t go away, they have to be paid. The cost of debt is going up, because of interest rates rising… So it just puts a greater, greater strain on all forms of GDP, because a greater part of your GDP has to go to debt repayment, We’ve always speculated, ‘When’s it finally going to have an impact on stock valuations?’ 

And it hasn’t yet in North America, for sure. I would suspect it’s kind of had some impact—obviously—in places like China and European Equities and other Asian equities. So I think it’s probably likely to have an impact here in North America as well.”

- Source, Sprott Money

Eric Sprott: Ready for the Gold Up Cycle

“I always thought we lived in a rather enchanted world, where interest rates were zero and we kept printing money all the time. And it looks like theoretically that world has ended. And, of course, stocks haven’t done much this year. 

And now we have, certainly, signs of things cracking. To wit, the 20% decline in Facebook, Netflix running into a few problems, some of the companies that are affected by exports, particularly autos… 

So we have some segments of the market that are in a bear market. That’s a logical outcome of rising rates. It’s a thing you and I have talked about ad nauseam here.”

- Source, Sprott Money

This Situation Is Extremely Rare...

"I have told people for many years that speculating in gold can be dangerous because it’s your time frame that matter to you. Saving in gold is non-risky. Buying gold because you believe that gold is an insurance product is always non-risky. 

I would take that further, however, by saying that gold stocks are almost never cheap. They are usually relatively expensive. And periods of time where the gold stocks are attractively priced relative to the bullion is rare, and this is one of them.”

- Source, Rick Rule via King World News

This Current Situation In The Gold Market Is Extremely Rare

With some volatile trading in the US dollar and oil near $74 a barrel, today Rick Rule told King World News that the current situation in the gold market is extremely rare.

Rick Rule: “The fact that we are starting to see increasing participation by mining companies in the open market (such as Goldcorp’s purchase of 7.3 million shares of Gold Standard Ventures), where they have no added inducement to buy, is extremely important from my own point of view…

If you add to that important observation the very recent merger and acquisition activity we’ve seen — the takeover of Dalradiun by private capital and the takeover of Arizona Mining by South32 — I think it’s testimony to the fact that while momentum isn’t in this (resource) market, while speculators are deterred from lack of volume and lack of momentum, value-oriented and industry investors are attracted to the fact that it’s cheap. At least the best companies are cheap.

And the value proposition of gold relative to US Treasuries makes me continuously bullish about (the price of) gold, although I can’t tell you very much with regards to the timing. I would suggest for your readers and listeners that they spend a little less time worrying about the gold market and think a little bit more about their reasons for owning gold and their reasons for participating in the market..."

- Source, King World News

The Death of Money: The Coming Collapse of the International Monetary System

Billionaire Eric Sprott Is Making Big Moves In The Silver Market

Billionaire Eric Sprott just increased his already massive stake in one of the highest grade silver producers in the world. The Canadian billionaire just purchased another 317,900 shares of Excellon Resources (symbol EXN in Canada and EXLLF in the US), bringing his total ownership of the company to 20%. However, when Sprott exercises his warrants, he will own a staggering 27% of the high-grade silver producer.

It appears that Sprott, who believes the silver price will surge above the all-time high of $50, intends to increase his ownership of Excellon to 32%, which has already been approved by the company. A look at Excellon’s chart below reveals the company has been under massive accumulation for almost 2 years.

- Source, King World News