Don't Expect the Money Printing to End

Money manager Eric Sprott was not surprised by the Fed announcement to keep printing $85 billion a month. Don’t expect the money printing to end any-time soon because Sprott predicts,“If my forecast for the U.S. economy is true, they will be doing it forever.” 

When the Fed first started taking about cutting the money printing, Sprott points out, “It was a great excuse to bomb gold, and now that’s off the table. I think we will see people moving into gold (and silver) . . . The U.S. dollar is under incredible pressure here.” 

Sprott, who manages $8 billion in precious metal investments, goes on to say, “I can guarantee you the U.S. government is insolvent today, but they’re just not doing anything about it. So, when they finally do something about it, instead of cutting entitlements 25% or 40%, just like Detroit, it will be 75%.” Sprott goes on to say, “ We’re buying more bonds on a daily basis, and rates still went higher, which is why I can definitively say the Fed lost control of the bond market. That is why they could not ‘taper’ because who’s going to buy all the bonds? Bonds are for losers.”

- Source, USA Watchdog:

http://usawatchdog.com/u-s-government-is-insolvent-eric-sprott/

Sprott Launches New Offshore Fund with Zijin Mining Group

TORONTO, Sept. 27, 2013 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott" or the "Company") today announced that it has launched a new offshore global mining fund (the "Fund") with Zijin Mining Group Company Limited ("Zijin"). All relevant regulatory approvals have been received in Canada and the People's Republic of China and the Fund has been initially seeded withUS$100 million from Zijin and US$10 million from Sprott.

"We are very pleased to launch this new fund which will allow us to open a new market for our investment products," said Peter Grosskopf, CEO of Sprott. "Zijin is the largest gold producer and the second largest mined copper producer in China and is listed on both the Hong Kongand Shanghai stock exchanges. We believe the combination of Zijin's technical strengths and Sprott's resource investment expertise will prove to be an attractive option for investors looking to invest in the mining sector with a focus on gold."

The Fund management company is a joint venture between Sprott and Zijin and will invest primarily in the publically-listed equity and debt instruments of gold, other precious metals and copper mining companies. The Fund will be co-managed by affiliates of Sprott and Zijin. Under the joint venture agreement, Americas Now Resources Investment Management Corp. has agreed to provide technical and marketing services to the Fund.

The target size of the Fund is US$500 million and the Company anticipates receiving additional commitments from onshore Chinese investors beginning in the fourth quarter of 2013.

- Source, Sprott Inc:

http://sprottinc.com/investors/press-releases/press-release/?prId=122620

New Chairman of the Federal Reserve Janet Yellen

This week, Janet Yellen was elected as the new Chairman of the Federal Reserve. What does this mean for the gold and silver markets? Join us and listen to Eric Sprott's views on this now!

- Source, Sprott Money:

http://www.sprottmoney.com/sprott-money-weekly-wrap-up

This Housing Market Has Got to Fail

"We've seen redemptions of bond funds. I, for my life, can’t see how at this point in time the Fed pulls back on their bond buying because rates would just go crazy (to the upside).

The jobs numbers that came out in the last two months, you know we averaged about 130,000 (jobs) when they adjusted July down, and August was kind of so-so -- and you can drive a truck through the numbers anyway. It’s my suspicion that there are a lot of the jobs are part-time jobs, and so I think we have a really weak economy here.

And if they do taper, and rates go higher, we already have a crushing situation in housing, where literally the cost of buying a house on a monthly basis, i.e. the interest rate cost, the principal cost, and the cost of the house has gone up 10% or 15%, is up (in total) 50% year-over-year. And nobody’s income is up 50%. I would be surprised if it’s up 2%. In fact, it’s probably down with the increase in social security taxes.

So this housing market has got to fail. The Fed knows this. The charges against the US Treasury are rising as rates are rising, which means the deficit is going to go back up. I wrote a paper, I guess it was about three or four months ago, asking, has the Fed lost control of the interest rate markets? And I suspect they have."

- Eric Sprott via King World News:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/13_Billionaire_Sprott_Issues_Warning_To_Western_Central_Planners.html

There is a Shortfall of Gold

I think there is a continued suppression going on -- the numbers (definitely) argue for that. There aren't a lot of numbers available, but even the few we have, like the six or seven sources, I calculated a year ago that there is a shortfall of something like 2,200 tons (of gold) each year in a 4,000 ton market.

- Eric Sprott via King World News:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/12_Billionaire_Sprott_-_Metals_Smashed_As_West_Hemorrhages_Gold.html

The Fed Has Lost Control of the Bond Market

In his most explosive interview with SD ever, CEO of Sprott Asset Management Eric Sprott discussed his thoughts on the Fed's no-taper, why he believes the cartel took down gold this spring, the evidence that a bail-in is coming to the US and Canada, and the US fiscal debt crisis.

- Source, Silver Doctors:

http://www.silverdoctors.com/

Gold is Going to $2400 by Next Summer

Billionaire Eric Sprott backs up his prediction that gold will hit $2400 by next summer. Taped at Cambridge House's Toronto Resource Investment Conference 2013.

- Source, Cambridge House:

http://www.cambridgehouse.com/node/13165

Bonds Are for Losers

The CEO of Sprott Asset Management, Eric Sprott, says, "We're buying more bonds on a daily basis, and rates still went higher, which is why I can definitively say the Fed lost control of the bond market. That is why they could not 'taper' because who's going to buy all the bonds? Bonds are for losers." Join Greg Hunter as he goes One-on One with gold and silver expert Eric Sprott who manages $8 billion.

- Source, USA Watchdog:

http://usawatchdog.com/u-s-government-is-insolvent-eric-sprott/

Is Billionaire Eric Sprott Selling Silver?

Marin Katusa, the Chief Energy Investment Strategist from Casey Research asks Eric Sprott a number of questions about gold, silver and his plans for Sprott going forward.

- Source, Casey Research:

http://www.caseyresearch.com/

The Bull Market Has Started Again

“Well, as I sit back and look at it, Eric, I think it is the greatest. To imagine you could make that much money (3,000%) in one year, as other financial markets are not performing well. And here we have this huge opportunity to own the metals, and/or the shares, and make this out-sized return, which is exactly what happened in that last decade when the gold stocks rallied by 1,800% off the low.

So that’s the type of thing that we’re looking at here -- a re-continuation of that phase. We took a 2-year pause, but it certainly looks like it has restarted again.”

- Eric Sprott via King World News:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/23_Billionaire_Sprott_-_How_Investors_Can_Make_3,000_In_1_Year%21.html

Is Canada Safe From the Next Financial Crisis?

We’re in way better shape. We have a pension plan. We have a pay as you go healthcare plan. We don’t have the amount of unfunded obligations that the US has, although we have unfunded obligations. We won’t be as badly off as the US will be, because they’re just not dealing with issues down there, because of the political quagmire they have.

But it’s not saying that we’re going to have a problem; we’re always the tail that’s wagged by the dog. But on a relevant basis, we’re going to be better off. I think we’ve got a better banking system. We have better budgetary controls, although some provinces seem to be out of control. I don’t think we have quite the same issues with the municipalities. We have more natural resources per capita. So, we’re definitely going to be better off, but that’s not to say we’re going to be unscathed.

If it’s all just a big Ponzi scheme, we all just print money as all these major capitalist countries are doing, there’s an unintended consequence of it. I don’t know whether it’s going to be inflation or massive deflation, but there will be something come out of it, because the life and the place we’re living today is not normal. I’m talking about the financial area for now, and there’ll be consequences for that. I don’t think it’ll be as bad here but that’s not something that says we won’t have to endure some pain.

- Source, Ask the Expert Sprott Money

Taper was Just Talk

I've always believed that the Fed is in a very difficult situation and the ‘taper’ was just talk. And we’ll see whether they ‘walk the walk’ or just ‘talk the talk.’ As you know, Eric, yields have doubled over the last 12 months, and in particular with the reintroduction of the taper talk.

We know that there is massive selling of bonds, whether it’s the Chinese, or the Japanese, and I would imagine a lot of the emerging countries are now selling US bonds....

- Eric Sprott via a recent King World News interview:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/13_Billionaire_Sprott_Issues_Warning_To_Western_Central_Planners.html