Sprott$8 billion fund manager Eric Sprott says there is a big opportunity surfacing in precious metals. Sprott contends, “I’ve always believed there is more demand than supply for the last 14 years. I’ve documented it.  I am suggesting the western central banks have very little gold left. I think the whole decline in the gold price is the liquidation in the ETFs to supply some of that shortfall. I think manipulation and relief from the manipulation and the ongoing demand, well in excess of supply, is going to power gold higher.”
On precious metal price manipulation, Sprott charges, “We seem to get more and more evidence of it all the time. The German equivalent to the SEC saying the possible manipulation to gold would be worse than LIBOR, and I think worse is a very important word here because there can’t be more money involved because LIBOR is way bigger than gold, but worse means the egregiousness of the price decline. Furthermore, we had another group come out and say the LBMA fixed the price . . . the price was manipulated 50% of the time.”



 

By Greg Hunter, USAWatchdog.com 

$8 billion fund manager Eric Sprott says there is a big opportunity surfacing in precious metals.  Sprott contends, “I’ve always believed there is more demand than supply for the last 14 years.  I’ve documented it.  I am suggesting the western central banks have very little gold left.  I think the whole decline in the gold price is the liquidation in the ETFs to supply some of that shortfall.  I think manipulation and relief from the manipulation and the ongoing demand, well in excess of supply, is going to power gold higher.” 

On precious metal price manipulation, Sprott charges, “We seem to get more and more evidence of it all the time.  The German equivalent to the SEC saying the possible manipulation to gold would be worse than LIBOR, and I think worse is a very important word here because there can’t be more money involved because LIBOR is way bigger than gold, but worse means the egregiousness of the price decline.  Furthermore, we had another group come out and say the LBMA fixed the price . . .  the price was manipulated 50% of the time.”

On the question of western central banks running out of gold, Sprott says, “We might already be there when you think back to the German situation where they got all of 5 tons last year.  Isn’t that a de facto ‘we’re not delivering the gold?’  I think that is such tokenism to the extreme.  I have always thought there would be tightness.  Whether it shows up in the COMEX one day or the fact that premiums blow out in China because they can’t get delivery, we are going to see that. . . .The supply demand numbers get better every day.”

What is Sprott’s forecast for silver?  He says, “I think it’s safe to say every time gold has gone up, silver has gone up some multiple of that, and I wouldn’t expect any difference going forward here.  What is Sprott’s price forecast for the yellow and white metals?  Sprott predicts, “I have said many times that gold will exceed $2,000 an ounce this year, and silver will exceed its previous high of $50 this year. . . . On a linear trend line, gold should be $2,100 right now . . . and if you throw on another 15%, you are looking at gold at $2,400 by the end of the year.”

On China’s possible financial collapse, Sprott worries, “Anytime you have a financial collapse, the last place you want your money is in a levered bank and/or a government bond, and for that matter, most stocks.  So, what’s left when you exclude those categories?  Gold is the place you turn.”  Sprott goes on to say, “On a corporate debt basis, China has one the most egregious leverage ratios out there.  You could get this domino type of effect.  Anytime there is financial uncertainty, that is what gold thrives on.”

On the possibility of a Ukraine/Russia war, Sprott says, “There are two fears.  One is war, which would be just devastating for everybody.  The other fear is there could be a financial domino fall away from this.  Perhaps the banks in the Ukraine, which are already facing tremendous strains because of demands on deposits, fail, and because somebody else is invested with that bank, they end up with a problem. . . . . War could certainly cause a financial domino, but we could have a domino without war.  There’s a huge bank run going on in Ukraine.  The currency is crashing.  The ruble is crashing.  It is surprising how far all these currencies have gone down.  We also experienced a huge decline in the value of the dollar . . . it fell half of one percent in one day.”  (There is much more in the video interview.)

Join Greg Hunter as he goes One-on-One with Eric Sprott, the CEO of Sprott Asset Management.

 

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  1. My gun has a soul that lays beside it dead.

    My guns are asleep and of no threat to anyone. Buried deep, sleeping, waiting, rusting (father would clobber me) for the sound of the retreat of the Fed and their Dollars, the retreat of the International Monetary Fund who will supposedly save us to steal from us more, the NSA and free insurance for all!

    But as the sounds of soles of the feet of the carpetbaggers fade our gold and silver will start to jingle from below the ground. The Constitution of the United Sates will be heard as it gasps for air, and rises. America will be vindicated with the firepower that only the righteousness of God, through the constitution, can reign down upon man. The evildoers, the bankers with stolen lands, the politicians with stolen dreams, the courts who refuse to listen to our supreme Commander and King, and the blood of many Americans and the prayers of the righteous will cry out “vengeance” upon those who dare to bring down this great nation.

    We will go to our voting places and vote with the following printed on our ballets; “God first, the Constitution second, our freedom third, all people (including fetuses) fourth, our possessions and guns fifth, and our politicians, preachers, police and judges last. Then we will show all enemies of this land the edge of the constitution, with pen, and sword, and powder and gold.

    But for now we are thinning, and waiting and rusting. But just remember the sleeping giant has great constitution. Keep that in mind, “slick folk”, that you cannot afford many more mistakes (too bad you didn’t get all those gun laws past huh? Some trouble getting rid of Bitcoin?  Is the Obama care site working yet? Silver and gold rising some?). Those of you who so enjoy sharing the toys of the other children, keep in mind, there is an all seeing eye of the constitution watching.

    Me and my little gun and my 25 cents are helpless to bring you down. But your “record” gives me hope, I think you will fall, oh it will hurt us all, and hurt us bad, when it happens, it will be a sad day, but I am confident that when it is all said and done that, those of us alive and remaining, will find justice in our future, because only free markets work, only the Constitution works, only righteousness exalteth a nation!

  2. I tend to agree with Sprott on his contentions that there can be dominos without war.  Only an insane fool would throw WMDs at a country with nukes.  Putin has won. Obama and his people lost this high stakes poker game in the Middle east and UKR.
    The sanctions planned to punish Russia will explode in the hands of the bankers and governments who try to use them to harm Russia.  I am not taking sides here. Russia saw weakness and worked this weakness to its advantage.   Obama was seen as weak, tried to take advantage of Syria and UKR and lost.  We have few if any military options
    Financial options will be few and far between   30% of Europe’s power comes from Russian petro.  The banking systems are tightly tied and attempts at currency wars will blow back to Europe and Us  China has more problems in their banking empire and as yet have not thrown their lot in with Russia despite hundreds of billions of dollars of oil, pipeline and trade agreements.
    China is watching Putin to make sure he stays strong.  Much is at stake beyond the UKR and Crimea though they are Russian interests of the first order.  
    These events are huge dominos and are in play in a way that does not offer predictable outcomes. But holding precious metals on a personal basis may be  on of the wisest decisions one can make

    My only fear concern is Obama will continue with his collectivest BS that he’s been foisting on this country and its people.  He is a weak posturing poseur and when trapped and with his power he is consumately dangerous.  On the surface nothing is going his way—not the economy, Obamacare, foreign entanglements.  He’s left with little more than speechifying and electioneering for the mid term elections. He is dangerous in all fashions and manners imaginable.  I am far more worried about this country than Russia and the UKR.

    randall I have one word for you CLR

    • @AGXIIK
       
      “The sanctions planned to punish Russia will explode in the hands of the bankers and governments who try to use them to harm Russia.”
       
      One would think that after the sanctions on Iran only succeeded in the BRICSA countries developing their own trade settlement system and Iran selling oil for gold, mainly through Turkey, that the idiots in DC would recognize their own incompetence and give up on trying to manipulate people who are smarter and tougher than they are.  Perhaps their failure to recognize this is part and parcel to their position as “idiots”.
       
      “These events are huge dominos and are in play in a way that does not offer predictable outcomes. But holding precious metals on a personal basis may be  on of the wisest decisions one can make”
       
      Agreed.  We are stuck with the results of DC incompetence but we are not stuck playing their stupid fiat game.  We can and will convert substantial amounts of fiat into PMs that we hold outside the bankster system.
       
      “He’s left with little more than speechifying and electioneering for the mid term elections.”
       
      Yes, those ARE the ONLY two things he is good at, so it is easy to see why he wants to stick with them for the next 3 years.
       
      “He is dangerous in all fashions and manners imaginable.”
       
      Yes, he is, and for the very same reasons why Jimmy Carter scared the Sh**sky out of the Russians.  They had no idea what he would do.  He was completely unpredictable and therefore extremely dangerous… as is Obama.  In fact, the more I look at this, the more closely Obama resembles Carter.  He might as well be Jimmy II.
       
      “I am far more worried about this country than Russia and the UKR.”
       
      Indeed so.  It is a point of fact that one’s own government is a much bigger threat to one’s health and welfare than any foreign government.  The death statistics of the 20th century point this out clearly and convincingly.
       

  3. The only way for someone to use the etf to supply somewhere else is to buy shares, that massive buying would result in share prices above the physical price, which would encourage more metal to flow in rather than out.  Sprott helped design some of these didn’t he?  He is a sharp guy, going to revisit my drawing board but that argument just seems counter intuitive to me.

    • The shares were ‘bought’ and converted to real metal in London by the major holders (authorized agents? — what’s the term they use for Morgan, Chase, HSBC and GS?:) way back when the ETF’s were first screwed together and rolled out and they were simply used as another ‘flywheel’ repository. Probably the bulk of that tonnage has been there longer that the Ft. Knox gold stayed in one place.  It’s been there as a demand and supply sump ever since.  I have no doubt that, on more than one occasion, there have been many more or less ‘hats’ than ‘hat checks’ in that cloakroom.  I’d also bet dollars to donuts that the tonnage they claim to have ain’t what they got.

    • APs (authorized participants) are what they are called, but their buying would push the price of shares above the metal price, which would encourage another AP to buy metal elsewhere and use it to create new shares to sell (buy low and sell high).
       
      As far as whether they have it, they are audited multiple times per year by a third party and results are shared, bar list published daily with plenty of people with plenty of time ln their hands analyzing those bars for duplications in their vault and elsewhere, i would have more faith in the etf backing than in any fort knox backing.

  4. “Furthermore, we had another group come out and say the LBMA fixed the price . . .  the price was manipulated 50% of the time.””
     
    Now, this is a statement that is completely unreasonable.  Manipulators do not manipulate HALF of the time.  IF they can, they WILL, so manipulation tends to be a FULL TIME gig.  There’s nothing half-arsed about it, ever… especially when it is amazingly profitable.  What?  The manipulators are going to say, “Nah, we’ve screwed enough people and made enough money for the day.. let’s all take the afternoons off and leave the markets to themselves for a while”.  Not bloody likely.
     
    @mikeyj80
     
    “i would have more faith in the etf backing than in any fort knox backing.”
     
    Indeed so.  At least, they ARE independently audited, unlike the US National Gold Hoard.  Not that there isn’t any room for financial shenanigans with the ETFs.  If they can be manipulated for someone’s special benefit, they WILL be… like everything else that comes within reach of their greedy little rat-like claws.
     

    • Agreed Ed, but on manipulation…. since the ETfs were designed to let the big boys make big money on arbitrage into and out of the ETFs, I would argue those players would be less inclined to ‘kill the golden goose.’  However, stranger things have happened.

    • @mikeyj80
       
      “…since the ETfs were designed to let the big boys make big money on arbitrage into and out of the ETFs, I would argue those players would be less inclined to ‘kill the golden goose.’”
       
      Yes, it is pretty clear that their interest is in continuing the game for as long as possible and racking up the most profits possible, I agree.  But, at some point, and for various reasons that tend to get discussed around here, it may well become impossible to continue the game.  When that happens, the goose will be well and truly cooked, whether they want that or not.
       
      Like other investors, I have no problem buying ETF shares when I can make a profit on them.  I have done so a number of times and the money made there spends just as nicely as any other money obtained from a legal enterprise.  Buying PPLT shares for $138 and then later selling them for about $165 was nice.  This was decent by percentage but even nicer in that the gain occurred over about a 4-5 week period.  :-)
       

  5. That could be the joke of the year. The ETF,s are nothing but a toilet paper factory being a clearing house for paper silver an gold. 100 pieces of paper in the roll for 1 ounce of silver or gold

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