In this interview with Peter Spina, Eric Sprott discusses the unprecedented silver consumption by India for investment purposes as the Indian gov’t cracks down on gold imports, and how India’s 4,000 ton increase in silver demand this year alone is likely to affect the silver market going forward.
Eric views the current price action in silver as extremely counter-intuitive considering the physical supply and demand fundamentals, and states that to see the price of silver go down in this environment (as India consumes an ADDITIONAL 30% of global investment silver supply) just blows me away!
Sprott concludes:  These trends simply can’t continue. You can’t have India suddenly consuming 15% of the global market, people in the US buying an all-time record amount of silver, and put the same amount of money into silver as gold, those things cannot continue to happen and the price of silver stay down.

Eric Sprott’s full MUST LISTEN interview on silver is below:


Sunshine Mint Silver Eagles As Low As $.79 Over Spot at SDBullion!

 

sic semper tyrannis

  1. So India consumes 16% of all world silver production is 2013. That’s a very big number. So blocking the gold imports has ignited a massive silver surge. Go figure. And the Chinese are hoovering up a huge amount of world physical gold production too. To think the price action is reflective of overall world demand is simply preposterous.
     
    Sure Sprott talks his book. He also speaks the truth on many things concerning gold and silver. Or I guess you can always listen to the MSM shills and trolls who never tell the truth about anything. Physical gold and silver will not only survive, they will flourish when this massive credit, debt and unfunded liability bubble explodes. .

    • I love Eric Sprott!
       
      Still think this is more important any ANYONE talks about:

      Kennecott Mine in Utah, USA suffered a massive landslide on April 10, 2013 effectively shutting down the world’s largest copper mine. Knowing the mine was going to collapse ahead of time and the fact that over 4 million ounces of silver (16% of total domestic U.S. production) was produced at the Mine every year as well as over 400,000 ounces of gold.
      Then days later, the price of gold and silver suffered historic losses.  Just a coincidence, right?

    • @4 oz
      Those are quite irrelevant numbers lost. What about the Pascua Lama project that has been side tracked indefinitely by Barrick? That’s huge. They counted on it, and now it’s not happening. Can’t just go and replace such deposits.
      400,000 ounces, that’s…

      13 tons. It fits comfortably in an estate car. It will also squash it :-)
      500 tons was used to move the market this spring.

      A greater coincidence is that the announcement that Obama and Bush admins were guilty or war crimes, the Boston bombings fiasco AND the gold/silver crash all took place the same day. The only big city marathon on a business day…
      The war crimes didn’t make the paper. The historical gold crash only when convenient.
      Supply and demand are NOT a part of price discovery in metals markets. This disconnect is there until it’s gone. Only when the very last bar is being fought over will the price respond accordingly. When the person who NEEDS the bar cannot get it. A jeweler or an electronics plant who needs silver to continue. They will the be ones doing price discovery. Who’ll be the cheapest one to delivery instantly?

  2. Among a very few others, Eric Sprott has been altogether consistent in his views and beliefs about the soundness of investing in Silver and Gold (and Platinum and Palladium) under the present financial and economic environment.  Especially the miners, who are the ones to ‘create’ money by extracting Gold and Silver from the Earth.  Under a Gold and Silver monetary standard, miners would play the invaluable role of expanding and growing the money supply, to keep up with population and economic growth, or else price instability and a deflation would surely set in.  By contrast, miners today are viewed merely as ‘profiteers’ who are trying to take advantage of the surge in precious metal prices, scorned by most people and especially by the financial establishment at large.  They have the Fed to print their fiat paper ‘money’, what use do they have for the barbaric miners?
     
    On a related note, it is often the little things that frequently end up making the biggest difference (ie, ‘the straw the breaks a camel’s back’).  If anyone uses the contact lens cleaning solution by the name of ‘Aquify’, they will note that recently the warning label has incorporated text providing notice about the potential for allergic reactions to Silver!  What that means is that this product is likely using Silver as a disinfectant in their contact lens cleaning solutions.  And no wonder, since Silver is the only disinfectant that is broad spectrum and yet is essentially completely non-toxic to the users.  In fact, Silver has already been proven to promote and enhance healing within the human body.
     

  3. That’s right, I do not follow that western crap, I follow the eastern crap. 
    My reports state :
    Representatives of a committee of 15 individuals, who claim to be in charge of the system for creating and distributing US dollars and most other privately owned central bank currencies, are trying to arrange a peace agreement for the cabal. They agreed last week, in negotiations with a White Dragon Society representative, to initially make available $700 trillion, or $10,000 for each man, woman and child on the planet earth to be delivered in the form of goods and services. They also agreed to debt forgiveness for all nations including, they say, some debts that date back to the 1700’s. They also agreed to forgive most individual debts.
    The committee claims to be headed by two Asian men, each over 90 years old, and representatives of five Asian families, seven European families and one Russian family.
    There was also a meeting last week between representatives of Asian banking clans and the WDS. These clans claimed the rights to most of the world’s gold. They were also agreeable to the proposal to distribute $700 trillion to the people and nations of the world.
    However, there are still some powerful factions still clinging to the Zionist nightmare of starting Armageddon, notably the Cohen crime family in New York and I don’t pay for his service, so you can find Benjamin Fulford at “weekly geo-political news and analysis” 
     
    Cabal is in surrender negotiations; told to hand over $700 trillion dolla’s or $10,000 for each human being.
    Yes, western and eastern crap have one thing in common, they both stink!
     
    November 19,2013

    • Your anti-Semitic diatribe is not welcome here.  I would remind you of Genesis 12: 2-3
      2 “I will make you into a great nation,    and I will bless you;I will make your name great,    and you will be a blessing.3 I will bless those who bless you,    and whoever curses you I will curse;and all peoples on earth    will be blessed through you.”

    • So here is the part of the equation that people forget: God. Yes, God exists, and He is in control.
      Thus, people may plan what they want, but God will preserve Israel (He will allow for black eyes to discipline their sinfulness, but He will save them).
      Have you ever read the Book of Esther? I recommend you do. Therein you will see how God orchestrates world events and uses Israel’s enemies’ plotting against them to save and bless His own people, whether they deserve it or not.
      All who make plans against Israel (especially Iran and Russia) will hang themselves with the very gallows they’ve built for the Jews.
      Support Israel, boycott Freemasonry, and give your life to Jesus.

  4. I have been reading this site 4-ever and finally decided to sign up so I can post.
     
    It appears to me, that even though ALL indicators point towards higher prices, all we keep witnessing is lower prices. This is because only a few people have all of the power and call all of the shots. Who knows where they will take gold or silver next.

    • Probably not doing very well. He explained when he sold some of his silver he bought silver stocks, which had been destroyed in value. It’s called trying to allocate capital, and trying to capture the extra leverage in the miners. That’s how you make serious money and why he’s a billionaire and an expert in this sector.
       
      Did you have a point or are you just trolling?

    • Yes BOP I do have a point!
       
      Using the same logic as ‘You can’t have India suddenly consuming 15% of the global market, people in the US buying an all-time record amount of silver, and put the same amount of money into silver as gold, those things cannot continue to happen and the price of silver stay down.’ mean that surely China’s inflows of Gold would/should have the effect that Sprott advocates in terms of silver price rises. However, we know this logic currently is not correct. If he is an ‘expert’ as you describe, he is currently displaying his expertise by advocating his investors lose money (currency) on his silver purchases! Surely if he was truly an expert, he would not be ‘all in’ on silver whether it be miners or metal.
       
      As we both know you can be an expert if the price goes your way but what happens when the events of the past two years catch you out. Still describing someone as an expert after two years of fund losses is way too lenient. Is John Paulson still an expert??
       
      When you say Sprott is not doing very well, what you mean is his investors are not doing very well from taking his advice. There is a distinct difference. Sprott and the KWN crew are singing from the wrong song book at this time. We all know what the fundamentals are saying however, reality is playing out differently. 
       
      In essence I am not trolling. I personally have both gold and silver and do not like to see what is happening however, these purchases combined with shorting the gold price, buying a little bitcoin 7 months ago, paying off debt and running a small business means I am diversified. 

    • Experts are allowed to get things wrong. Investments don’t always go right, that is why they are called investments, punts, hunches. Hey hunches go wrong, they are suppose to go wrong! Hunches are for real men, if you want to go the way of the jumped up little fart, go hedge, do derivatives, go all in on CDS’s, if you can sleep at night after repackaging some poor fools debt into a highly collateralize instrument, go for it, I hear its warm down there in hell. 
       
      Now if your referring to Hedging as being the ONLY game in town that is a sound investment, really? You buy into shorting the market for profit? You buy into the ethics of operating a company based on momentum trading? just as the company your investing in is about to make a profit think “whoa, I made a killing”, then pull the rug out of the investment as your using it to make money, and are not interested in the company whatsoever, as the company dies. (This scenario is what is happening in America, and the world, does not lead to true growth, only short term make-believe profits)
       
      Give me a fella who takes a punt at something , than a man who has his calculator, working out all the angles of a trade based on hedging any day. A punt is a REAL investment, a REAL way to improve the economy, a REAL way to make a difference. Hedging is the problem. A very legitimate mechanism in the hands of maniacs does not make them Experts in anything, apart from knowing how to take a perfectly good Capitalist System, and breaking it in two.
       
       

    • Sprott has set out his stall. He is predominantly physical based because he sees the fundamentals are so strong, he’ll just sit and bide his time.
      This is a long game. This is not short term profit. This is paradigm shifting.
      Sprott is an expert who knows his time WILL come. I like your diversification. That’s all good.
      But what we see as reality is a thin veneer. We all know that manipulation is rampant, across the board.
      But when TSHTF there is one very important point to bear in mind – counterparty risk.
      This is a game of musical chairs, the chairs are reducing rapidly, the dancers are many and we all know we are already sitting on those chairs, but the dancers can’t see this.
      JC

  5. It seems to me the silver flame is getting dimmer by the second. there way to many reasons now for the price to not go up.
    1#Obama scare is coming an its going to put a major money take away from the economy, people be selling there silver.
    2#Smart people are going to start believe the price manipulation simply cant be beat an are going to give in to sell.
    3#An if you have a very huge amount of silver to sell who is going to buy it. Salt lake city Utah only 3 places can do this in the whole city.
    4# An right  now this minute the silver price is so low the mines simple let it go out as waste an never recover it.
    5# An when the price of silver does rise everybody an there dog is going to sell $50 The gov wont even have to manipulate it lower this time.
    6# The world still has lots of silver left. Your dollar is actually backed by it since you can still buy it no problem with it.
    7#If the price of silver really actually took off all the gov has to do is recall all coinage an just with the silver plating have a silver melt.
    8# All the QE money that was made in by fractional reserve banking pretty much gave the government enough money to keep the stock market up an pms down an interest rates low an the gov banks so wealthy they could actually pay off the national debt. If the actually opened there doors for actual public use.

    • “7#If the price of silver really actually took off all the gov has to do is recall all coinage an just with the silver plating have a silver melt.”
       
      Really ?  What coinage would that be ?  What US coins have ever been silver plated ? 
      Do you have any clue what you are talking about, or does this crap simply roll off your fingertips ?
      And as for the govt ‘recalling’ ANY type of coinage or bullion: How is that going to work ?  You think folks are going to line up and bend over ?  It didn’t work in the 30′s ( banks turned in theirs, common folks either held it or moved it offshore ),  at a time when the population was a WHOLE lot more trusting of govt, and it would fail miserably today.
       

      “Two things are infinite: the universe and human stupidity; and I’m not sure about the universe.”

      Albert Einstein

    • What are you talking about?
      No.1 – The percentage of physical owners is so small and these are strong hands largely, not people who are ready to give up at the first opportunity!
      No.2 – Smart people believing the manipulation can’t be beat – An oxymoron if ever I heard one.
      No.3 – Lol. Sell online, go to another state. More likely swap for something of value not BS fiat.
      No.4 – Am I really replying to this troll like BS.
      No.5 – Have you learn’t anything yet? If that is what you think physical silver is worth, you’re in the wrong game.
      No.6 – Interesting the Dollar backed by silver – what a concept. Twat.
      No.7 – I’m on the verge of laughing now, but I’m hanging in there (god knows why!!!)
      No.8 – Welcome to Weimar, enjoy your stay. 
      JC

  6. Long as the Federal Reserve and its puppets the big wall street banks are in control we will never see the price increase. JPM can dump paper silver at will, they create it out of this air just like the fed does dollars.

    • Not true Mary, all that has to happen is for investors to pour money into the physical silver market, that really hasn’t happened.
      Why can’t Sprott raise $2 billion and do a offering for his PSLV??   Do you know what just $2 billion would do to the silver market?   Pure rocket fuel, but guess what, Sprott hasn’t done even a small offering in a very long time, why?  Investors don’t want silver in this current environment.
      This all can change if INFLATION starts up, investors will seek a hedge if this happens, so far investors do not seek that hedge.  The Fed and the banks can NOT stop global physical demand in the silver market. There is a reason why silver is at $20 oz, lack of physical demand!

    • BOP, Just answer my first question, why hasn’t Sprott done a offering for PSLV in over 1 year?  This is the same man that is claiming investment demand for physical silver is off the charts, yet his physical silver fund has not added a single ounce, it seems to be counterintuitive.
      Are you telling me Sprott wouldn’t love to do just a $600 million offering?  That’s 30 million ozs of silver, yet nothing.   And lets be honest, $600 million is chicken feed, why not to an offering for $2-3 billion?
      Sprott has gone around the globe to market his gold and silver funds, investors know about it, where is the demand for his PSLV??

    • Once again, like clock work, the ZMAN Cass Sunstein-designated government troll on SD is here to tell us that supply/demand is what determines the price of silver. That’s one of the talking points that he’s paid to post about. However, all intelligent people here already know that supply/demand do not determine the PM price, and that we have a rigged government-endorsed price fixing operation in place. The ZMAN troll is paid to be here to convince you that the price fixing that we know is taking place, is some kind of conspiracy theory, and that we should instead believe the bankster-owned government talking point of free market economics at work.

      ZMAN is a Cass Sunstein/Obombass administration paid troll.
      ——————————————————————————————————————————————–
      “Cass Sunstein, the Regulatory Czar, had suggested, in a 2008 paper, that government agents, or allied groups, infiltrate and undermine groups that spread “conspiracy theories.”

      In a 2008 academic paper, President Barack Obama’s appointee to head the Office of Information and Regulatory Affairs advocated “cognitive infiltration” of groups that advocate “conspiracy theories” …….

      Cass Sunstein, a Harvard law professor, co-wrote an academic article entitled “Conspiracy Theories: Causes and Cures,” in which he argued that the government should stealthily infiltrate groups that pose alternative theories on historical events via “chat rooms, online social networks, or even real-space groups and attempt to undermine” those groups. ” 1

      1 http://conservativehideout.com/2010/01/17/czar-wars-trolls-cass-sunstein-advocates-“cognitive-infiltration”-of-groups/
      ——————————————————————————————————————————————————————–

      Another article describing what job ZMAN is paid to do: Obama Information Czar Outlined Plan For Government To Infiltrate Conspiracy Groups: “Put into English, what Sunstein is proposing is government infiltration of groups opposing prevailing policy,” 2

      2 http://www.prisonplanet.com/obama-information-czar-outlined-plan-for-government-to-infiltrate-conspiracy-groups.html

  7. When I read posts or listen to Sprott’s interviews he seems really truthful & sincere. He lays out all the fundimentals and FACTS. He understands just as stackers understand the facts, the numbers etc. and what they mean for the future. He also dares to put his cash in just as we do. It seems like a long time ago but it only been a couple of years ago when he started his PSLV. Remember what happened to the price of Ag when he bought 30 million in bullion? The cartel has spent billions and two years to get the price back down to near the level it was at before his PSLV. But it also left them without the phyzz to continue their manipulation. He hurt them, we hurt them big time! We hurt them still. The demand for investment Ag exploded and has not let up since and probably won’t untill the Event happens. PANIC NOW WITH FULL CONTROL AND STACK ON!

  8. You have a good point there Rockets. 
    It was well over a year ago that Sprott was trying to put into play something on the order of $350,000,000 and maybe a total of $500,000,000 in two tranches. The boards lit up over these purchases, being done when silver was $33 an ounce or thereabout.  Sprott waited for months to get his supply.  I dont remember the exact number but at the time there were two silver ETFs looking for silver.  The price has since dropped 35%.
     His buys were probably fed to him at that low $30 over months but his buy was respected. $300,000,000 would fetch 10,000,000 ounces. That was about 45 days supply. His buys took time as he acquired silver slowly, but being fed slowly didn’t disrupt the price that much. The price drop to $20 had to hurt. Most of us would have bet money this PSLV buying would create a large spike in silver prices. I dont recall it producing more than $3 or so in price movement.
    So with all that large scale buying the prices were managed by TPTB quite well until that buying was done and then WHAM, prices were crushed over the last 12 months. What a bummer. What a mouse trapping was managed by the paper traders. Disappointment was so thick you could cut it. But damage to supply was done by the small and large buying hands.  
    The residual effect of these purchases took a lot of silver out and tucked into the vaults at PSLV. Millions of ounces went into private hands and overseas. That locks up supply, tucking into beds around the world. 800 MOZ was taken out in 2012 That much or more will be absorbed this year.
      The demand may be pretty close to or possibly exceed supply now but it’s clear that demand has not exceeded absolute supply. This means silver is coming from sources which are not will to state they are being looted. SLV and the bullion dealers come to mind.
    If present and past supply of silver is being folded into the stackers bank of mother earth like mountains ranges are absorbed by tectonic plate action, this silver will not resurface for a long time or until prices race up.
    Leaving scrap recovery aside, if the nomninal silver supply from the earth is curtailed by all these mine problems, it’s still an accumulative process. That curtainment of mined supply to have its effect.

    If that happened and we may see some bullion bank default, removing that above ground supply of silver, or just that magic moment when there is nothing available in the marketplace $21 but demand is still solid, the price will go up 
    Doc has mentioned many times that the wait period can be weeks and availability for physical silver is sometime spotty.
    Silver still flows if you are willing to wait 2-6 weeks.  But that wait period means the inventory is JIT. Just in time. 

    Scissors, paper rock.   Scissors cut paper but rock smashes paper and silver is a rock in my opinion. Take a 100 ounce bar and see how a piece of paper holds up to it.
    That day will come.  But waiting is still a bitch. Much patience is needed. There is also a saying that just when things look the gloomiest with your holdings and the emotional pressure to sell it at its highest, resisting that urge to sell is prudent. The prices often ramp soon thereafter. The fear factor is proportional to the bad news about the metals. Lots of bad news, lots of fear.

    • @AGXIIK: I was going by memory, but if I remember correctly Sprott announced PSLV in the summer of 2010 and Ag was around 20 notes. By the end of the year it had went up to around thirty notes. By spring of 2011 as people were investing in record breaking amounts it went up to around 50 notes. That’s the point at which the cartel reacted and smacked it back down. I believe it was Sprott, by starting PSLV and investing his own money in it ignited much of this massive investment demand back in the summer of 2010. Of course there were many others also explaining the fundamentals of Ag too.

  9. Folks, folks, folks.  Forget the troll’s and those that refuse to understand what real money is.  If they want to live by the US Dollar then they will die by the US Dollar.
     
    It’s a fire sale on silver currently.  Buy, buy and buy.   Remember; it’s a marathon – not a sprint.
     
    Someday too, you’ll have elevnty billion dollars!!  :)

  10. Now I know why I enjoy Silver Doctors so much, particularly in the AM.
      Humor—that clip Waiting for Silver, is classic. 
    Trust the MSM   Nope
    Trust the gummint  Nope. 
      #2 on Jeopardy has a job waiting for him in government.  Pool boy to Katherine Sebelious.
    And Bay—your comments always make me laugh.   I would not want to piss you off. 
    Cheers all 
    Its a good day when we can laugh.

  11. Rockets  I see your point. If Sprott was buying in 2010 I missed those details.  In that large silver price run up I was buying and selling the Derexion 3X elverage ETF and making a pot full of money on that, then buying silver with the profits.  Of course, as is normal for me, I did not exit at the high 40′s price.  Crap. Once silver cratered and I got a swift kick in the nads while clinging to that leveraged fund, a good friend of mine told me about Silver Doctors.  Once I started reading on a daily basis, it wasn’t long before I realized that these leveraged funds were terrible for the  portfolio.   I went from paper trading in 2010-2011 and shifted to physical, happy with the decision ever since despite the drop  in prices. Paper trading was making me very nervous and upset.  Addictions can do that to a person.
     I started digging into the world of silver and reading silver doctors and dozens of other sites every day once silver started its crash. I was late to the game in my research; really late actually but happy to be part of this theme of honesty and the ability to see the trees in the forest. 
    Relying on my memory is dangerous, as my wife tells me regularly.   My recollections noted above must have been the the second or third round of buying for Sprott’s PSLV. That happened when silver was in the mid 30′s range, well after the price crash.
      What you said would support the contention that Sprott’s  heavy buying and all the silver buyers concerted efforts to crash the markets and kick the price up  caused silver to ramp to $49 an ounce.  But that was fraught with risk.  When the Fed and ESF, JPM and the usual suspects put tens of billions of paper FIAT to use crushing the price, ALL the honest buyers and traders couldn’t stop that onslaught.  
    I think most of us feel like Sysiphus pushing that pesky boulder   In our case, unlike Sysiphus who was a lazy deceitful king punished to push the rock uphill, we’ve been condemned to push that silver boulder up the hill while the uber criminals shoved it back.  But good hard honest work does have its rewards.  We will prevail in this shoving contest.  It’s just going to take a while.
     From the price peak  we know what happened and who the culprits were who crushed the price.   Has anyone heard from Blythe lately?  She’s been pretty quiet
    Sprott should be regarded as a hero for fighting against the evilness of these paper traders, shouldering both the silver boulder and the moral burden of a man who is right and will take the high ground.  Backing people like him is a worthy part of the battle.

  12. I am a big fan of Eric Sprott. His commentary is always insightful and rarely does he throw out wild price targets and make bold predictions. Most of the time he simply provides excellent data points that you can do your own research on. He sticks to the fundamentals which is the same thing that I do. I am in no way a technical analysis or chart guy which is why I don’t trade the precious metals at all. I just stick to the plain old boring fundamentals and keep accumulating ounces. I have some friends that I have told about silver and gold and they are all waiting for a “lower price.” A somewhat wealthy friend of mine recently told me that he’s waiting for gold to go to $1,000 so he can buy. I guarantee you if gold does go that low he will then say he is waiting on $800. People who do not understand the fundamentals will never pull the trigger yet this man has hundreds of thousands of dollars tied up in the stock market currently. He owns ZERO precious metals and he doesn’t see anything wrong with it. Does this sound insane to you?
    At the end of the day the fundamentals always come out in the wash even in the stock market. 

  13. I agree that the Zionist remarks are not only ignorant but unfounded. When you try to isolate an ethnic group for disdain, persecution and destruction, you have a hand in what happens to them and share the guilt. If when you say Zionists in regards to the secular/socialist/godless government of Yisrael, you are really hanging a title on them that does not fit. The Zionists are the poor religious families and communities out in the territories and around Jerusalem. They have no power and they are despised by their own government.
    YHWH is the author of True Zionism and it will come to pass just as the prophets have foretold. Only a small remnant will survive the coming persecutions and the ignorant rants against Zionism is what will fuel that persecution. Better read your bible through and learn what and where Zion is and what is promised in regards to that word. To fight the plan of YHWH is to fight YHWH, not a smart thing to do.

  14. Gee I forgot one or more.
    9# The government doesn’t want the pms to go to the moon an stay since they lose billions in missed tax revenue. Hence the government doesn’t know how much an who has the metals. Unless you bought over $10,000 at a time. So selling to other people small sales would all be missed taxation.
    10# The government all they have to say, an now with all the bs they pulled could get away with it no questions asked. Yes we did manipulate the price of gold an silver for very good reason. We wanted our dollar strong.
    11# Warren Buffet one of the most best investment broker he sold his silver along time ago I believe it was $18 range when he dumped I wonder why?

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