Eric Sprott: Suppression Game Cannot Go On Forever, Gold Will Go Crazy with War in Middle East

Eric Sprott of Sprott Asset Management is one of the best performing money managers with returns topping 20% for more than a decade. He has $10 billion under management, and it’s no secret Mr. Sprott is a long term bull on physical gold and silver. It looks like other big money men like “Bond King” Bill Gross are also thinking about going long on the yellow metal. Sprott points out, “When the Bond King goes to some sort of physical asset, I think you can see some kind of sea change.” So, why aren’t gold and silver prices higher? He says, “I can make a compelling case the price has been suppressed.” If it wasn’t, Sprott says, “Gold would be $2,500, and if the ratio was 15 to 1, the price of silver would be $150 an ounce.” The suppression game cannot go on forever. Mr. Sprott also says, “The economy is already taking a cliff dive and that is before we hit the cliff. . . . It’s hard to imagine anyone being optimistic going forward here.” If there is war in the Middle East, Sprott says, “Oil would go crazy, gold would go crazy, anything physically real would be in demand.” Greg Hunter goes One-on-One with Eric Sprott.

Comments

  1. “When the Bond King(Bill Gross) goes to some sort of physical asset, I think you can see some kind of sea change.”–When I hear that from a man of Eric Sprott’s experience I think you can take it to the bank.   PM market is small.  When big money finally moves in we should see a big move to the upside overrunning the downside manipulation.

  2.   I look at it this way.  I don’t look at the ratio using production numbers.  That silver is promised silver.  Above ground silver to gold is 1:5 (roughly).  One ounce silver to 5 ounces of gold.  Tell me which is more rare at any given moment.
    And good report from Greg.  Excellent reporter.  He was going 100 MPH on C2C the other weekend.  I think John’s head was spinning during the interview!! :)

  3. I think Mr. Sprott is right,

    if (or when is more accurate) war in the Mid-East gets going, gold/silver will go quite high.

    But I’ll go one further. Seeing as war in the Mid-East is coming, my (unsolicited) advice is avoid investing in Iran, Syria, and the like… but invest in Israel, especially Israeli oil/gas/mineral companies. Israel has the 3rd largest Natgas reserves in the world, some believe it will find massive deposits of oil some day soon, and the Dead Sea area is one of the world’s most mineral-rich areas.

    With this war, these things will skyrocket, and seeing as Israel will WIN this war with the Ayatollahs and Syrians (even though it will suffer some bloody noses itself), it’s smart to invest in the country who will WIN the war and who has considerable oil/gas/mineral deposits.

    Not only that, but supporting the Zionist (Zion is merely the Biblical alias for Jerusalem… it could equally be called the Jerusalemite State…I bet most anti-Zionist Muslims don’t realize that by calling Israel a Zionist State, they’re affirming the Jews’ biblical claim to the land by using biblical terminology, ha!) State is an awsome thing to do! (Unless you’re a neo-nazi, hyper-libertarian Alex Jones follower, an adherent of Shia or Sunni Islam, or plain just not Jew-friendly).

    Side with God’s Nation, Side with the upcoming Victor, Side with Zion, invest in Israeli oil/gas/mineral companies!

  4. Could it be that a hot shooting war may not be desirable to the elites precisely BECAUSE it WOULD drive PMs to a viable competitive rational position against banknotes? There’s also endemic instantaneous global communications to broadcast all the gory details.

    Perhaps a likely ‘war’ will recently have been ‘gamed’ through the sequences of cyber ‘mishaps’ we’ve been witnessing. Without body bags and deformed soldiers languishing in sub-standard hospitals, the ‘press’ shaping ‘cyber attacks’ into managable acceptability would be a comparative ‘cake walk’.

  5. I think if you step back from all the commotion they’re spraying in our faces, you’ll see the house of cards is starting to fall.  Like in Rose Red, the blood is flowing out the elevator doors.  It gets better from here. :)

  6. Pat-  I think it is raging right now.  They are fighting in clandestine ways that won’t be revealed until they are just history.   Floods, droughts, baking heat waves, crop damage, blackouts, who knows what mischief they’re instigating with all that black budget money. 
    The whole western paradigm of superiority is at stake.  If the dollar is taken out, we’ll see some monetary benefits (as stackers), but lose our lifestyle in the process.  It’s not the PM investor’s fault these kids can’t get along.  I didn’t cause or lend moral support to any of this, so I will not let guilt bring me down.  If they wreck the economy, we can all go long tar and feathers.

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