Thursday, July 31, 2014
The Silver Fix and Manipulation
Saturday, July 26, 2014
The Gold Price Should be $5,000 or $10,000 and It Will be
Hopefully the commercials find that the game is getting less and less profitable, and ultimately we let the physical surplus of demand over supply determine the price. This would be very exciting because it’s not hard to imagine the price easily getting to $2,000. Of course there has been lots analysis done out there, whether it’s money supply or real inflation, on what the price of gold should be, and you get to $5,000 and $10,000, and I think that will all play out.
You know I look back and gold bonds used to be issued in the 1800s. And I saw an example of a gold bond that was issued in 1888. It had a 6 percent coupon, payable in gold. And I did the calculations of compounding the interest rate, compounding of the price of gold that has risen, and that $1,000 bond was worth $60 million today.
And I thought, you know what? That’s the story of gold -- that it protects you in (dangerous) environments, and it gives you this huge, outsized return, not withstanding these massively violent, brutal attacks, where everyone is trying to get you to stand away from the market. I hope all your (readers and) listeners have resilience, stay the course, and continue to buy as I will be buying, and I look forward to some wonderful returns going forward.
You know I look back and gold bonds used to be issued in the 1800s. And I saw an example of a gold bond that was issued in 1888. It had a 6 percent coupon, payable in gold. And I did the calculations of compounding the interest rate, compounding of the price of gold that has risen, and that $1,000 bond was worth $60 million today.
And I thought, you know what? That’s the story of gold -- that it protects you in (dangerous) environments, and it gives you this huge, outsized return, not withstanding these massively violent, brutal attacks, where everyone is trying to get you to stand away from the market. I hope all your (readers and) listeners have resilience, stay the course, and continue to buy as I will be buying, and I look forward to some wonderful returns going forward.
- Source, Eric Sprott via King World News
Thursday, July 24, 2014
Where is the Supply of Gold Coming From?
I’m going to be knocked off my socks if something doesn’t happen with gold, but last year it was reported that we lost 700 tons in the GLD, which is physical gold that was sold into the market....
And here we are in 2014 and so far we are up about 12 tons (in GLD), so it’s no big deal. Maybe we will do 20 tons by the end of the year, but if you look at the dynamic of having 700 tons (of gold) not come to the market, and the GLD actually buying tonnage, you have a metric where you could see an 800 ton delta just in the GLD, in a 4,000 ton market.
Who is supplying this? Because supply is not going up. So I think that there are many, many reasons from a physical perspective that the gold market will be shockingly great this year, and that ultimately (with) the paper guys, there is going to be some problem that manifests itself here. Whether it’s taking delivery on the Comex, or the Chinese not receiving their gold, something like that has to happen with the kind of metrics we have.
And here we are in 2014 and so far we are up about 12 tons (in GLD), so it’s no big deal. Maybe we will do 20 tons by the end of the year, but if you look at the dynamic of having 700 tons (of gold) not come to the market, and the GLD actually buying tonnage, you have a metric where you could see an 800 ton delta just in the GLD, in a 4,000 ton market.
Who is supplying this? Because supply is not going up. So I think that there are many, many reasons from a physical perspective that the gold market will be shockingly great this year, and that ultimately (with) the paper guys, there is going to be some problem that manifests itself here. Whether it’s taking delivery on the Comex, or the Chinese not receiving their gold, something like that has to happen with the kind of metrics we have.
- Eric Sprott via King World News
Tuesday, July 22, 2014
The Banking Industry is Way to Levered
A lot of the policy to keep the gold price suppressed is not going to work. How could anybody honestly believe that inflation is only 2 percent? It’s so ridiculous, and even the public is now realizing it’s ridiculous. The central planners have played a game that hasn’t worked, and there will be a price to pay.
When you see a bank goes down, what’s the first thing you think about? ‘I want my money out of the bank. Where am I going to put it all? I better put it into something real.’ We keep hearing that the bad loan problems are getting worse, the trading volumes for the commercial banks are going down, the spreads are narrowing. And I would never have my money in a bank. They are so levered and risky.
It’s funny that it doesn't strike people as being risky, but when you put your deposit into a bank, you've lent your money to the bank. If the money is lent to someone else who is not going to repay it, you are going to be on the hook for it. We just had the German government approve of bail-ins in that country. So we are all set up for it. Everybody knows there is going to be a problem in the banking industry because it’s just way too levered based on any normalcy in banking. So our day will come.
When you see a bank goes down, what’s the first thing you think about? ‘I want my money out of the bank. Where am I going to put it all? I better put it into something real.’ We keep hearing that the bad loan problems are getting worse, the trading volumes for the commercial banks are going down, the spreads are narrowing. And I would never have my money in a bank. They are so levered and risky.
It’s funny that it doesn't strike people as being risky, but when you put your deposit into a bank, you've lent your money to the bank. If the money is lent to someone else who is not going to repay it, you are going to be on the hook for it. We just had the German government approve of bail-ins in that country. So we are all set up for it. Everybody knows there is going to be a problem in the banking industry because it’s just way too levered based on any normalcy in banking. So our day will come.
- Eric Sprott via King World News
Sunday, July 20, 2014
Gold and Silver Prices Reek of Suppression
It’s hard for me not to think it’s imminent. When I got into the gold market back in 2000 I read Frank Veneroso’s gold book. He suggested that the central banks, who said they had 35,000 tons of gold, probably only had 18,000 tons.
And I see data every year that suggests demand might exceed supply by 2,000 tons. So the metal can come from only one place -- (Western) central banks. That’s why I wrote the article in 2012, ‘Do They Have Any Gold Left?’ Then you see data points out of the U.S., where the U.S. is exporting 40 tons of gold one month, and the U.K. is exporting 112 tons to Switzerland one month, and the U.K. doesn’t even produce any gold -- so where is this gold coming from?
These numbers all reek of the suppression of the gold price and tell you the game will have an end date. I think we might be very close to that end date now. I know lots of your readers and listeners will have seen a comment by some reporter from Bloomberg who suggested that the Bank of England's vaults were empty now. [LAUGHTER.]
And I suspect that is very close to the truth -- that the supply is dwindling, and someday they just give up on it. Like they should be giving up on the policy of money printing. They accomplished nothing. We’re so misguided on all this stuff. It’s not working. All we’re doing is piling on the debt. Well, there is a cost to debt and that cost gets bigger all the time.
And I see data every year that suggests demand might exceed supply by 2,000 tons. So the metal can come from only one place -- (Western) central banks. That’s why I wrote the article in 2012, ‘Do They Have Any Gold Left?’ Then you see data points out of the U.S., where the U.S. is exporting 40 tons of gold one month, and the U.K. is exporting 112 tons to Switzerland one month, and the U.K. doesn’t even produce any gold -- so where is this gold coming from?
These numbers all reek of the suppression of the gold price and tell you the game will have an end date. I think we might be very close to that end date now. I know lots of your readers and listeners will have seen a comment by some reporter from Bloomberg who suggested that the Bank of England's vaults were empty now. [LAUGHTER.]
And I suspect that is very close to the truth -- that the supply is dwindling, and someday they just give up on it. Like they should be giving up on the policy of money printing. They accomplished nothing. We’re so misguided on all this stuff. It’s not working. All we’re doing is piling on the debt. Well, there is a cost to debt and that cost gets bigger all the time.
- Eric Sprott via a recent King World News interview
Friday, July 18, 2014
Failure to Deliver Will Send Gold Higher
We have the Chinese coming in and buying an extra 1,500 tons (of gold). We will have a GLD metric that could be as much as 1,000 tons just this year, year over year. The Indians haven’t changed the laws yet but I think that will be forthcoming, and they can get back into normal buying mode....
We know that production is likely to fall off because of the lack of financing, the difficulty of getting projects approved, the unwillingness to go into projects, and the massive decline in exploration.
So if you look at it from a longer-term perspective, you can see that all the catalysts are in place. In terms of the immediacy of something, it’s going to be a failure to deliver. I don’t know where it’s going to occur, but it will be a failure to deliver somewhere.
We know that production is likely to fall off because of the lack of financing, the difficulty of getting projects approved, the unwillingness to go into projects, and the massive decline in exploration.
So if you look at it from a longer-term perspective, you can see that all the catalysts are in place. In terms of the immediacy of something, it’s going to be a failure to deliver. I don’t know where it’s going to occur, but it will be a failure to deliver somewhere.
- Eric Sprott via a recent King World News interview
Wednesday, July 16, 2014
Financial Sell Offs Should be Taken Advantage of by Investors
Monday, July 14, 2014
James West interviews Rick Rule, Chairman/Founder of Sprott Global Resource Investments
Saturday, July 12, 2014
The West Will Regret All Its Financial Policies Someday Soon Sprott
Thursday, July 10, 2014
Are You Swayed or Afraid? A lecture by Sprott's Michael Kosowan
David Franklin, the Chief Market Strategist from Sprott Asset Management discusses the short-term future for gold. Solid information for investors here. Stay.
Join us at an upcoming event! Goldseek's Peter Spina ( talks about legendary investor George So.
Chairman of Sprott Global Resource Investments Rick Rule ( pulls back the curtain on 3 companies he's buying now.
Tuesday, July 8, 2014
The Physical Buyers Will Overwhelm The Paper Sellers
Sunday, July 6, 2014
Silver Will Go to $100 This Decade
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