Our friend Eric Sprott of Sprott Asset Management has released a 4-part interview answering readers questions about gold, silver, and the current economic situation.
Sprott discusses the PSLV’s recent $200 million issue, the current supply/demand situation in gold and silver, whether there is more than 1 entity manipulating the metals markets (Sprott states the G6 Central Banks are behind the metals manipulation), the risk of government confiscation, and much more!

There’s a lot of evidence that the G6 Central Banks don’t like the gold price going up. They particularly don’t like the gold price going up when the crisis is at its peak because gold is the canary in the coal mine. So, there is no overt proof of manipulation. There are many people who look at all kinds of data that – and myself included. I look at the physical data and I say “Well, where’s the physical gold coming from that these various entities are buying?”

When I look at the difference in supply and demand from, let’s say, 2000 to today, I see demand having gone up by about 60% and supply is about the same. So, where’s the gold mine supply and recycling? So where’s the gold coming from? I personally suspect that the G6 Central Banks, who are trying to keep the world together, are supplying that gold through the physical market through leasing of gold from central banks.

Full interview below:

Part 1

 

Part 2

 

Part 3

 

Part 4

  1. Exactly, AGXIIK. That’s what I don’t get about silver lovers who say Eric Sprott is torpedoing his own fund: it was HIS purchase by and large, in late 2010, that caused a huge supply shortage and catapulted silver threefold in 9 months.

    Is there temporary price dilution upon new offerings?  Yes. 
    Would PSLV shareholders be better off 5 years from now if Eric refrained from taking another 20 to 30 million oz of phyzz off the markets via those new offerings?  Don’t see how anyone with a brainstem could argue this(please spare me the “but Kid Dynamite says”….I said anyone with a brainstem).
  2. Is there anyone here who can say how quick the local coin shop supply ran out, back in the `79-80 run?  I was just getting into the whole G&S thing in 1980, so all I remember was traveling buyers in hotel rooms who ran commercials on radio and TV, and some local businesses offering their products in silver coin prices too (90% coin).  That will be and is happening again to a certain degree, just waiting for the businesses to start taking silver again.

  3. Aloha and Good Morning! Monday July 23, 2012 and there is a Major Take Down going on. We are -.50 on Silver in the Asian Markets and still awaiting the NYSE to open up. This could be a very bad day before Ron Paul Audit the Fed takes place tomorrow! I see no QE 3 was initiated this weekend as Jim Sinclair stated “MAY” happen. Not until the election is over. 

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