Eric Sprott: At Some Point it Blows!!

imagesEric Sprott manages $10 billion, and he’s worried about the global financial system. He says, “There is this huge chaos going on in the financial business which I think we all sense. They are using desperate measures here to hold it together. . . . at some point it blows.

There’s no doubt about it.” Sprott says the price of gold and silver are being suppressed because, “It’s the canary in the coal mine.” Rising prices in precious metals, according to Sprott, would tell people, “Central bank policies are ridiculous and irresponsible, and people would realize that with the price of gold and silver going up.” When it comes to silver, Sprott says, “People keep buying at a rate to 50 to 1 to gold.” As far as gold is concerned, Sprott contends, “Physical demand for gold is out of line with supply. How can all these new people come into this market when there has been no increase in supply . . . for the last 12 years?” Sprott’s analysis shows central banks are selling to make up for the shortfall and opines, “I would hate to think what happens when we all find out there is no gold in the Treasury.” Join Greg Hunter as he goes One-on-One with Eric Sprott.


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Comments

  1. Stackers have no greater friend than Eric Sprott!

    • He certainly ranks right up there with Izzy Friedman, Ted Butler, Jason Hommel, et al.  If one can’t relate to and believe this man, one should not be dabbling in silver or gold, they should be buying the dollar…oops, almost puked!

    • Eric Sprott has funded some of the most critical research into PMs that we have available publicly.  Even without him, I’d be invested in PMs, but probably not as heavily.  We all owe him a big thanks.

    • The best part for Canadian stackers is that He is also Canadian! :D

  2. The Promises of the Politicians and the Central Banks will fall apart as the liars they are and interest rates will go sky high.

    • Amen to that, my March stacking man! Ah, those interest rates.  Apparently there aren’t many remembering when that peanut-eating weasel (Jimmy (extra-tooth) Carter) ran interest rates to the effin moon.  They will be 12, 13, 14% soon….

  3. Although I agree with Sprott, the physical market he so often refers to has no real bearing on the price.  Sure, we do have supply and demand, but they just don’t matter when it comes to gold and silver.  At least not yet. 

    • @MrBoompi:  Can you please explain “the physical market has no real bearing on the price”.  I am not sure what you mean, so I’d like a clarification before I comment.  Thanks!

    • The reason why supply and demand is negligable in the PM markets is because price suppression along with data suppression has reached the point of it almost being comical ! This farce of an economy that we think still exists in the USA will be exposed only when staple commoditites can no longer be afforded by the welfare class ( milk, bread, eggs etc ) When that happens and it must happen considering our total lack of manufacturing growth and non sustainability of the service economy that exists today. Bottom line, hold your PM no matter what. Sell nothing and be rewarded or sell now and be sorry. peace

    • The price of silver and gold are set by the paper price.  We’ve known this for years.  Physical shortages only lead to halts in production of coins and bars and maybe jewelry.    And the paper price must be relatively easy to manipulate, if you have enough fiat at ZIRP rates to back your plays, because it’s manipulated on a regular basis.
       
       

  4. It already blows!         (kidding, tee hee hee)

  5. We all know the derivatives market is unsustainable and at some point someone is going to take a big hit. The gold and silver paper markets will go down when the rest of the derivatives implode. Temporary price drops to buy as much as you can find from fools who won’t survive the coming collapse.

  6. Only an infinitesimal percentage of the people know anything about the critical shortages of precious metals that now exists.  Supply and demand balance is 1 to 1 or less.  Even with the airwaves, print and digital media blanketed with ads touting the advantage of precious metals purchases, more ads than Etrade and Ameritrade IMO, the frantic push for precious metals has not surfaced.
    Yet silver’s retail availability is sketchy at best, as is noted by dozens of buyers  a daily basis in Silver Doctors.
    When the reality of the shortage,  whether gasoline, toilet paper (1974 Johnny Carson schtick) or ammo, the public will flood the market with orders and prices will ramp by 100-200% in a time span that will be breathtakingly short.  The  bank silver shorts will go long, taking paper profits while telling an increasingly panic-striken government to shove it. The rigging game will be over if only in that these bankers will take advantage of the profits to be hand in the price increases of these commodities. They are not stupid and the government will be hard pressed to stop them. It would be ironic to the Nth degree to see the government take action when banks go long, particularly when the shorting was done with impunity.
    The government will panic and in a vain effort to stop the rise of PMs and the deflation of the dollar, either throught regulation or taxation of precious metals, TPTB will  engage in an all out campaign to arrest the price increases. 
    It will fail at all levels, with the same force as the tide rolling over King Canute’s feet. 
    The public will trump the government. The more the government squeezes, the more the public will fly to silver and gold.  There is not a chance in the world that we, the people, will sign a suicide pact with the government that is hell bent on impoverishing us.
    Stack

    • To find out if there is a shortage of physical silver, all you have to do is go to a local coin shop and see the availability of physical silver. At my local coin shops, there aren’t anymore one ounce pieces of pure physical silver.

  7. It may happen but in order for that, hyperinflation must happen with the dollar so that it could lose a lot of value to make silver’s price go higher in terms of dollars or there should be a sudden silver shortage which will quickly drive silver’s price and premium higher.

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