Eric Sprott, John Embry, & Rick Rule Round Table Interview on Precious Metals Fundamentals

sprottIn this unique discussion, precious metals experts Eric Sprott, John Embry and Rick Rule discuss a wide range of topics related to precious metals investing including macro economic issues, expanding central bank balance sheets, and the role of precious metals in protecting your purchasing power. A detailed analysis of the gold, silver and platinum/palladium markets, and a Q&A session round out this great discussion.

For those who missed last week’s live round table discussion of precious metals with Eric Sprott, John Embry, & Rick Rule, the full MUST LISTEN discussion is below:


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  1. Gold and silver are not currencies.  If you want to buy food, at least today and in the foreseeable future, you must exchange your gold or silver for dollars first, and even then you’re not going to get much more than spot..  The Fed and the bullion banks have been successful in destroying the correlation between inflation and the price of precious metals.  Derivatives (paper) still control the physical prices, not the amounts of physical metals being sold.  Maybe when these prices decouple things will change.  But I don’t see this happening anytime soon.  They’ll print like crazy before they let the US slide into a barbaric barter system.  How many articles predicted $200 silver when the price was at $34?  And where’s the price now?  Personally I like physical metals as a hedge because of the possibilities of selloffs in the other markets, but QEternity is pushing investors away from gold and silver and into the equity markets.
    Let’s not forget most of the experts we see and hear either sell metal or store it for you, so they make money regardless if you see any gains or not. 

    • Good luck to you MrBoompi as for me I strongly believe that the Derivatives Market is going to crash in the near future and that will send the PM Values higher and I also believe Gold and Silver is Money and a store of Wealth which I will use to my benefit when the time comes which I believe is Sooner than Later.
      I don’t know where you have been hiding but silver is selling with Premiums over spot and so is junk silver. If I can get it for spot I will jump on it and I have always sold over spot when I had to sell.
      When the time comes WTSHTF I’ll be so happy to be holding a lot of my 90% silver that is going to be buying me a lot of what I’ll need to survive. Keep Stacking The Physical.

    • They are trying to shake every last ounce of physical out to cover their asses.

  2. Charlie  you reminded me about the freaking derivatives.  The Euro banks and bond problems which are all insured by the derivatives, leveraged a whole bunch of times over.  This might explain why the Fed send $236 billion over the pond to the Euro banks to bolster their defaulting banks and loans.   If the derivatives explore it’s game over.  The Italian bank Banco Paschi, was bailed out for the fourth time due to concealed derivative losses which were papered over by Monti and his people over the last 4 years.  This whole situation is going to get nasty. 
    The court jester will let the sequester fester for another semester but school’s out fools and precious metals will rule.

    • Sequester is a joke, you have DHS releasing 10,000 illegal immigrants BEFORE it happens to try to make a point. I think we need to make a point and round them back up at gunpoint and dump them at the border with a gun at their back and a warning they come back they get shot.

  3. There are two giant “Oh, $HI+!” moments just waiting to happen and either of them could implode at any time now.  The derivatives mess is huge and certainly capable of hurtling the entire world economy into the crapper.  Worse yet, these new financial instruments are VERY poorly understood, even by those who buy, sell, and trade them.  The banksters continue to bray about their “net” exposure to these instruments, as if they fully expect to be paid all of the derivative money they are owed.  That will not happen.  It might at first as banks, other financial institutions, and governments try to keep the fiat paper Ponzi scheme going for just a little while longer.  But as this train wreck worsens in spite of their best efforts, this will soon devolve into wild-eyed every-man-for-himself full-blown screaming panic.  The entire derivatives market will end in a spectacular crash that results in 2-3% of the money owed being paid and 97-98% of it evaporating and disappearing.  Much of that will be money that the banksters expect to receive to net out their derivatives losses.  Their gains will be minimal but their losses will be staggering beyond belief.
    As if that was not sufficient, we also have a GIANT US Treasury bond bubble that has formed because of the VAST money printing schemes known as “quantitative easing” or QE for short.  This scheme allows the Fed to create virtually unlimited amounts of money from thin air that they can then use to buy US Gov bonds.  They hold these interest bearing debt instruments as assets on their balance sheet while the US Treasury department gets the printed or computer generated “money” needed to fund government sponsored largess.  Other investors, including citizens, financial institutions, and foreign governments participate in this market as well.  The money collected in exchange for these bonds is then used to pay some legitimate government bills but is otherwise largely shoveled out to the mooch class in exchange for their votes.  There are dozens of trillions of dollars worth of these bonds out there and each year a group of them comes due for repayment.  Since the Gov does not have the money to repay these bonds, they “roll them over” into new bonds plus some money that has been either borrowed or printed.  Again, something is created from thin air and is then traded for something else that is of some value… something for nothing, as it were.  Well.  This smacks of magic, does it not?  Abracadabra!  From nothing, something!
    In any case, bond investors are slowly becoming aware of the fact that they are getting financially screwed, first by inflation and then by taxes.  Inflation guarantees that bond investors WILL lose purchasing power and then their “gains” are taxed as if they represented some sort of profit… which they do not.  As bond investors catch on to this shell game without a pea, they WILL head for the exits.  There will be a mere trickle at first, then a torrent, and then a raging flood.  Unfortunately, not all of them can fit through the exit to escape this value trap and as they clog up the door out of there, bond prices will collapse.  Before they can escape, their bonds will fall greatly in value taking the majority of their investment.  Yes, the Fed will jump in and do what they can but it will be seen by many as too little, too late.  The collapse of bond prices will do great damage to the US dollar and will, at the very least, result in a serious devaluation.  This will be done in an effort to “save” the situation, regardless of whether or not the situation even can be saved.  
    Trillions of dollars of wealth will immolate in this fiasco scenarios, collapsing the US economy and possibly its government as well.  Either of these situations will be more awful than any of us can possibly imagine.  Either one can make the 1930s look like the good old days.  Of the two, the derivatives problem is larger and probably less salvageable so has a higher probability of genuine disaster should it occur.  But do not underestimate the damage that a US Treasury bond market collapse could do.  It would be devastating as well.

  4. Ed B  You know it, Willie knows it, we know and those two big WMDs will be a FUBAR beyond belief.  I’m not sure how to get out the way of these two falling pianos either.  If they cmoe down together there will be few places on this planet to hide.

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