Eric Sprott: The Cartel Will be Taken to Their Knees!

cartel taken to kneesThe Doc sat down with gold and silver expert and billionaire fund manager Eric Sprott Wednesday for the first of a series of interviews regarding the markets.
Eric warned The Doc prior to the interview that the KWN and USAWatchdog sites were maliciously attacked the day they published interviews with Sprott.  There appear to be powerful interests that would prefer to keep Eric’s thoughts on precious metals out of the public at the present, as SD also sustained a confirmed co-ordinated Apache flood DOS attack during the recording of the interview.  

With gold smashed nearly to $1550 and silver nearly to $28 Wednesday, Eric discussed the latest paper raid in the face of epic physical demand, and stated that the demand for coins has been stunning!

Sprott also stated that there is an absolute shortage in platinum and palladium, and although he still believes silver is the investment of the decade, there is no telling how high platinum and palladium could go.

With silver trading back under $30, Eric states that silver should be $100 today, that he expects it to massively outperform gold, and that he conservatively expects the metal to reach $200/oz.   Eric states that $200 shouldn’t be considered the top however, and that All we know is that the price should be up massively.  Anyone who’s been a student of the market sees these ridiculous trades, but some day these guys will be brought to their knees by people just taking delivery.

The first of Eric Sprott’s MUST READ interviews with The Doc is below:

Silver Bullet Silver Shield Slave Queen Collection  at SDBullion.com!!

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When asked whether the current gold and silver correction is the beginning of a 2008 like collapse, or as Jim Sinclair has suggested, the last major shake-out prior to major bull moves for gold and silver, Sprott responded:

It’s getting chaotic out there in the financial world.  We have a worldwide economic recession, we have governments which have hugely over borrowed, and we have so much printing of money it’s surreal.
Interestingly, this whole time the price of gold and silver has gown down, which I find incredibly unusual because all of the data that you and I and other people in the precious metals business look to on a physical basis is so strong.   I’ve always surmised that because it’s so chaotic, and because Paul Volcker stated back in 1980 that the mistake we made was not getting control of the gold price (of course the gold price at that time had gone from $35 in 1971 to $850 a mere 9 years later) and we ended up with double digit inflation.  I certainly believe that precious metals are the tell on the irresponsibility of the central planners. 

And I think that the central planners would know that these are massively unusual and irresponsible, but it’s the only thing they can doThey have to keep interest rates down because any uptick and all governments will face almost immediate bankruptcy because they wouldn’t be able to afford the interest. 

We’re living in very unusual times, we see incredible volumes on the paper markets of silver and gold, which obviously bear no relationship with what’s going on in the real world.
When you trade 1 year’s silver production in a day- matter of fact I think we traded one year’s worth of gold production yesterday, which is absolutely ridiculous!

They just trade the paper like it’s the real thing but as you and your readers know, it’s not the real thing, and there’s a whole other market out there which ultimately will determine the price. 

The Doc asked Eric his thoughts on the massive physical silver demand in 2013:

As we all know there is the paper market and the physical market.  As you’ve pointed out the demand for coins has been stunning.   I think the important thing to point out for a silver owner is to look at the US Mint’s statistics and to look at how much silver is sold and how much gold is sold.   For 2011, 12, and so far in 2013, the US Mint sells 50 times as much silver as they sell gold. 

We know that the amount of silver produced in the world is only about 11 times greater than the amount of gold each year.  We also know that there is 150 x more dollars of gold in inventory than there are dollars of silver in inventory. 

So when people are buying at a rate of 50 to 1 (and I can also use the example of our gold and silver trusts, in the last traunche we sold 50 times more silver than gold)- these are people choosing to buy silver- we don’t force people to buy our trust, no one forces them to buy from the Mint, but that’s the relationship that they’re buying gold and silver at!

When I talk to bullion dealers, my favorite question is what percentage of your business is in gold and what percentage is in silver in dollars, and almost to a man, the answer is 50/50!

So how long can people continue to buy 50 times more silver than gold?  Because for investment purposes  it’s really only available on a 3 to 1 basis, because most silver is used for industrial uses, whereas most gold is used for investment. 

 

Sprott also states that silver should be trading at $100 currently!

With a debt of $60 trillion and a GDP of $16 trillion, bonds will not be paid backYou have to own physical things- silver and gold being the primary ones.   Gold is by far the bigger market and has more money go into it, but I think silver has a chance of massively outperform gold, simply because of those ratios we talked aboutIt’s only available in a 9 to 1 ratio, the inventories are a ratio of 150 times more of gold in terms of silver, and yet we see people spending the same amounts of money on gold and silver. 

Silver should go back to that 16 to 1 ratio, so gold at $1600 should be at $100.  I certainly imagine that gold goes much, much higher here.   If for example it went to $3,200, the price of silver would be $200.
That’s the sort of move I expect, but you know you can’t pick a top on these things, and we have so much money printing, so fast, that it’s impossible to calculate where it should be because we don’t know in the future what these government’s will do.

All we know is that the price should be up massively.  Anyone who’s been a student of the market sees these ridiculous trades, but some day these guys will be brought to their knees by people just taking delivery, and I hope it happens sooner rather than later.

When you look at for example the February month, every day so far we keep getting new people standing for delivery!

 

Full audio and transcript of Eric Sprott’s explosive and MUST LISTEN 2-part interview with The Doc is available now!!  CLICK HERE!

SD Bullion

Comments

  1.  With all due respect….nothin new here from admiral Sprott. Read all, trust none, believe only in yourself.  It all boils down to self interest and preservation.
     
    That being said, nice work getting the this interview DOC!

  2. My dealer told me yesterday, his sales have gone from ~3x more silver to now ~20x more, Euro for Euro.
    Absolute utter silver mania going on in Europe, but in all quietness. I can only buy generic 1 ounce coins anymore, not the larger Perth stuff. Would need to trust a dealer to take my money (off the market) for a few weeks and MAYBE deliver at the end. 

    • If your in Europe, why not make use of the big refiners, Metalor and Umicore spring to mind, deal with them direct with larger orders and get some cracking prices.
       
       

  3. Guernsey mint are out of britannias. Not so unusual but a dealer in germany also out of elephants and just try getting anything SBSS in the uk its like hahaha suck lemons on that one. Prices on ebay not dropping however Eric draws an interesting point on the 50-1 sales ratio but so far only anecdotal evidence. It may not be long to go but then again at may be.
    Keep stacking and watch out for QE going underground later in the year.

    • I love the guys at the Guernsey mint, I really do, but they really got to get their act together on deliveries, 3 weeks isn’t good enougn :)

    • I got a sweet deal going on with Metalor at the moment, I buy at refining costs. If you want @ArcTree I can get some for you, it  will be less than The Guernsey Mint, plus you won’t have to run the gauntlet with Customs. Smallest bars 100 gram, fully certificated and above board.
       
      I ordered some coins from Guernsey about 2 months back, I got smacked hard in the face by Mr Customs. To add insult to injury I then got slapped in the face by Royal Mail for £8 administration costs.
       
      I tried getting a deal going on with the Royal Mint, but they will only sell Britannia’s at £28 per Item, and that’s in purchases of 16 Kilos!!! Complete arseholes.

  4. I’m not sure about elite on their precious metals knees. They’re going into longs, they’re going to starve the world of physical. Our buying is making their future profits higher.

    • I agree.  The Elites have been in this game for a VERY long time now.  They not only KNOW the rules, they MAKE them.  They will be around for a long long time.  What may very well go to their knees, however, are their middlemen… the LBMAs and CMEs of the world.
       
      “Our buying is making their future profits higher.”
       
      In a sense, it is.  On the other hand, it is also making OUR future profits higher.

    • @Ed_B The elite not only know and make the rules, they also don’t have to follow them.

    • Actually, they do follow some rules, just not the same ones that we do.  There are two sets of rules… one for the rulers and one for the ruled.  If any of us did 1/1000th of what Jon Corzine did, we would spend the rest of our lives in a 8×10 foot cell.  He, on the other hand, hides out in the Cayman Islands for a while until a bribe-able judge can be found to dismiss the case against him.  Such a deal… lots of sun, champagne, and beach bunnies to console him while he awaits the news of his arranged meeting with “justice”… or Just US, as Gerald Celente likes to say.  

  5. Anyone selling bullion for ANY amount of government banknotes is a goofball. I’ve LONG suggested that PGMs are the play for truly wealthy folks and that includes rhodium … which is constantly (curiously?) pushed out of the limelight whenever the sector is discussed.
     
    When last I heard, the ‘reset’ IS seriously being negotiated toward ‘gold-backed’ banknotes (there’s even been a reported ’sighting’ of such a Singapore note … held and examined!). The scuttlebutt I got was that American banknote units were then ’valued at about seven ‘cents’ worth of gold (KEEPing everything in the banknote paradigm, by the way), with that ‘gold backing’ of course, wholly predicated on government assertions, which will likely NEVER actually be verifiably audited. So? … more of the same crap. Infinitely reproducable paper gold claim tickets ’backing’ infinitely reproducable paper banknotes.
     
    Paper Rots, Coin Does Not.

    • There won’t be a reset, however I do get excited when I hear of a Chinese Gold backed Renminbi, but that won’t come in for at least another 10 years.
       
      As for selling for Government Notes, hey if your all in on Silver, which I am, you don’t hold any Government Notes, but you have to sell your hard stuff to get food. Its a necessary evil. I am always selling at a profit though, making between 8-10% on all sales of purchases of silver less than a year old. 

    • “there’s even been a reported ’sighting’ of such a Singapore note … held and examined!”
       
      But not photographed?  Pity, that.  It would be good to know for sure what it looks like and what is printed on it.
       
      “There won’t be a reset…”
       
      No one can possibly know this.  If and when a reset hits, it will do so with zero fanfare and only the Elites will know that it is coming until the hammer drops.  If it benefits them in any way, it will happen.  If it doesn’t then it will not happen unless there is a colossal f***-up of some kind.  This isn’t likely but it certainly is possible.
       

    • @Patfields To be fair: paper rots and silver tarnish

  6. Hi guys, as I live in Holland I can confirm that silver is still being sold through sites like Ebay (and other Dutch secondhand sites)  for about 80 eurocent per gram or more, way more than the 70 eurocent the price is at now. People over here just don’t sell any silver lower than that. Premiumprices at dealers are also a lot higher that they used to be. Not to mention taxes.
    Don’t know how that is in the US but in Holland you have to pay 21% tax over every silverbar you buy at a dealer or shop. If you buy a bar second hand you don’t pay this tax but that is also the reason why not many people sell their silver.. A kilo bar of silver including taxes in the webshop where I  buy Maple Leafs will cost you $1189,- That is about $35,- per ounce….
    Secondhand silvermaket is getting huge over here, so if you need money just bring your silver with you on holiday and sell it here haha

  7. @ XC Skater   They’re going into longs, they’re going to starve the world of physical       If they create shortages, isn’t that a good thing? Economics 101 Supply and Demand stuff there. Shortages equals higher prices. Unless they want to keep manipulating while going long, which makes no sense.    Our buying is making their future profits higher.   Makes our future profits higher too. That’s why we stack, and keep stacking as long as there is product available. One day that will all end, and we stackers will be in the driver’s seat while the naysayers who refused to ever buy in can burn their fiat for fuel.
    Good interview DOC.  The attacks that good websites like yours are experiencing is proof of how desparate and paranoid they are. 

    • It’s only good for those that started accumulating all-in when the cartel started their prep work. 
      Right now, premiums are devloping on 10oz snakes, 4% over Kooka snakes at my dealer. kilo’s are going for more per ounce than 10oz. I have a bit of cash but am already experiencing hardships getting my kind of silver!

    • @XC Skater…get out of the coins market, its a con, go for straight up bullion. You will get better returns on your investment. I don’t need patronizing little pictures on my pieces of silver, I just need the hard stuff with the numbers that matter at the lowest costs.

    • @WaitingForSilver
      This is Europe. It’s different. We pay taxes in ways you may not be able to fathom.
      Bullion is taxes 21%. Coins: 7% of 21% over profit. 
      Bars are so out of grace, some people get them for spot plus 3-4% even though in shops they are spot plus 24% or so. However, silver bars are found to be filled with red metal. It happens. So much easier to counterfeit a bar.
      Europe does not have generic rounds like Apmex ones. They’d be taxed 21%. It needs to be legal tender or we can’t stack it. Bars can be stacked yes, but I prefer to have 9 kilo coins over 7 bars of the same weight.
      Bullion, where to sell that when silver gets expensive? Laws are being passed to enforce passport copies with even tiny purchases/sales. Precious is criminalized.
      Oh and 1-ounce bars, just friggin’ stupid expensive here. Why get that when I can get a pretty coin for less?

    • @XC Skater,
       
      what on earth you on about, I am in Europe, In Britain we pay 20% across the board, no matter what the silver is. Where are you in Europe, which country? if your in Germany they pay 7% on coins, I know I have done a couple of runs out there. Silver bars are even cheaper if you cross the border into Switzerland. But the vat is nothing when you add in the manufacturing costs of making pressed coins when compared to bars, that’s why you will always get a better deal on Silver bars than coins. fact.
       
      The reason why Europe don’t deal in generic rounds is that Europe deal in Bars and the market is flooded with numismatics from over 500 years that fit the bill. If you do want to buy European rounds, you can’t go wrong with Austrian or British Bullion coins. You can also buy coins in each state that represent their own take on Euros, the Austrian mint does a few and I also thing France and Germany do also. The French mint mind, tend to deal in Bronze and are more about the artistry than the metal content.
      Coins are very pretty I grant you, but you pay way too much for them in the bullion form.

    • Ok lads I have a bunch of British Silver Thrupennies and Tanners in my stash, I believe over a 100 of them that I’m willing to sell on. Any takers? I won’t be able to get to them until Spring. Lol

    • @marchas45
      Lol I just put all my thrupences on eBay, was selling them £1.50 a piece. They are fiddly. I can’t believe people are buying them in singles!
       
       
       I been selling young head queen vics for £20 a piece, the wedding market is mental :-)  

    • 20 quid a piece lol
      I have a few of those. I need to check out ebay and I also forgot about the Wedding Cakes. Lol and the Baby Cakes. Are they still doing that? Lol

  8. In Europe – Slovenia is total panic on forums…People are stupid. Mr. Sinclair is top. gOLD AND SILVER GO PARABOLIC….better belive..
    Of course he is a milionare… but stupid people they buy gold and silver in full …For small investors is 10 % quite enough. More is stupidity.
     
    All the best.. 

  9. Yeah, I agree it sucks to try to buy in now, even with the price smash.  Hard finding anything under $5 over spot. Apmex yesterday was selling ASE’s at $34 (almost $6 over spot). The best deals I’m finding are at Scottsdalesilver.com.  I have bought a lot from them in the past.  They were at $660 yesterday for a tube of ASE’s ($33 a piece).  Their 5 oz Prey bar was the best deal at $157 or $31.50 per ounce (I have 5 of those and they’re very nice).  Might buy 5 more. While I’d rather have coins, like WaitingForSilver says, bars right now are the best deal.   

  10. At my future Silver exchange (Silver bank),after  hyperinflation occurs food stamps/guns  will be accepted ..

    • Lol its the end of the world, the whole thing has turned to shit…there you are with your family, dressed in rags, buying bread from unscrupulous black market thugs…and you produce…the BATMAN COIN!!! :)

  11. XC Skater,
    Are you talking about junk silver?   Because 1oz rounds ARE bullion.  

  12. Junk is drying up hard in Europe, as is Perth mint 10oz/kilo stuff it seems. Better-off polo shirt and Porsche types are getting in. They know they are late to the game. They cannot even dream to get a decent amount of junk before any deadline.
    I have a part of junk in my stack, but as premiums are rising and supply drying up, I am from buy to hold now. 
    1 oz, 10oz and kilo coins, from national mints, those are good buys in Europe. Anything without a nominal value, even 1 kilo bars, have been rendered unattractive, at least at realistic (black)market prices.

    • What constitutes “junk” in Euroland?
       

    • Lots of choice. The past decades .925 special editions all over Europe. In the late 1800′s/early 1900′s .900 was typical for larger coins.
      There are some countries with rich history of .835 (Belgium, Italy, and I think CH). A bit of .800. Netherlands lots of .720 (yet hard to get). Austria .640, Germany .625.
      What I’ve seen, junk comes in one or 2 kg bags, usually for 1000g of fine silver. Typically 2-5% over spot. But rare. Fewer and fewer people hold it, and they hold more on average. People who like .900 for easy calculations, find themselves stuck with cash they cannot spend, they .900 simply isn’t there to satisfy their appetite at current prices.

      Not long ago I scored like 8x 500 Lire well under spot. Rare lucky find. The junk buyers, especially small lots, are collectors. Foreign countries can be had under spot. Local country usually over. Leading the race is Germany. A plain bag of .625 will sell way and beyond over spot. Yes, 10-20%. Germans are buying back their marks like it was their kidnapped child. Also, the PM culture may be better established there than elsewhere on the continent. A vast network of bullion dealers. Oddly, no proper bullion from the German mint. Just their flood off €2/5/10 special editions. An “Einstein” or something should be a real hit world-wide. Perhaps they don’t by lack of locally mined silver?

    • Thanks, XCS… that was quite a list.  Looks as if there are MANY hard to find choices there.  US 90% silver coinage is relatively easy to find here, although local shortages occur at times.  Most on-line vendors still have a good selection of junk but also many “sold out” signs on various products.  I have some junk in my stack… maybe 15% of the total silver weight is in dimes, quarters, halves, and dollars.

  13. These  Snakes, Kooks, and the like are beautiful coins to be sure.  The workmanship is classy.  Wait for it….B U T, we’re talking silver here. More importantly we are talking OUNCES.  Nothing more, nothing less.  For MY money, I prefer OUNCES for fiat.  Pre-65  US coinage is clearly giving you more OUNCES for your fiat…and its real money, not something created to sell silver.  Its already silver, and not counterfeitable (who the hell would try to illegally make a worn out Washington quarter).  Yes, 90% is the way to go!  Stack, people, stack!

  14. The day is quickly approaching in which the price of gold will in one day rise 12X to 16X the present price. This would suggest a $20,000/oz for gold. However, silver could rise 40X the present price resulting in $1,160/oz. keep in mind that these prices will occur only when the powers that be are positioned in the physical world to take full advantage of these prices. Until then the price of silver/gold could continue to drop, of which I am anticipating. We are seeing the beginning of the BIG scare tactic to remove scared money from the physical market.

    • “We are seeing the beginning of the BIG scare tactic to remove scared money from the physical market.”
       
      Yes, but more importantly to TPTB, we are seeing LARGE amounts of gold and silver exiting the weak hands and pouring back into the market, where it will be absorbed very quickly.

  15. Are we getting the same deals? I can very rarely find coinbars that are even marginally cheaper than kilo coins, and coins are harder to counterfeit. Perth kilo’s are more accessible it seems, although sold out now where I get them (actually better than 7% VAT is doable as I hinted above).
    I cannot stack hard enough to justify the costs of going to Switzerland. Don’t even own a car! I know for a fact that train travel limits the amount of silver that is practical to buy.

    I like the ounces-for-Euro’s in junk, but this advantage is diminishing. People are paying (well) over spot on low purity junk.
    Also, with VAT rules set to become more strict, EU wide to 21% likely, it’s great to buy stuff now that will be taxed later. 

    90% silver is popular, but good luck spending €1000 on it today, anywhere on mainland Europe, any closer to spot than 10%. Remelt value? Well below spot? Guarantee to get well above spot for it when you exit? Not good.
    Some ultra-strong hands are sitting on 90% silver. In Europe, it’s rare to beging with. Just not a lot out there, who in their right mind didn’t melt theirs in 1980 with the then stronger dollar? Those who kept theirs are hoping to at least LIVE the day that silver goes above inflation corrected levels.

    I’ve seen prices in Britain, that’s even worth than mainland, I feel for you. I’d have unloaded my bars there had it not been for the 10% eBay fee. I went all through making accounts and adds, but then saw the fees, and had to retract. I’ll find a sucker to pay me more for my bars than I know to get 10oz/kilo coins for, and be hapy to have unloaded them.

  16. What a good day it will be! until then lets enjoy watching them try to wiggle out of their paper naked short position. 


  17. Well, the battered wife syndrome kicked in because I was shocked not to wake up with 2 black eyes this morning. The long road back hopefully starts today.
     
    Either way I might go pick up a few maples today just for the hell of it. I said before, price plus of minus 5 bucks spot, I don’t give a shit – if it’s going to 100 it don’t matter. and being up 30 cents in a day, if I go buy 10 maples I spend a whole whopping 3 dollars more.

    As for what to stack I’ll throw my 2 cents in – I have nothing but various 1 ounce recognizable rounds. Mostly maples, some cougars, a tube of those 1.5 oz polar bears, some eagles, some buffaloes, and recently some silver bullet silver shield units. Why? I buy in smaller increments, the 1 oz units are generally less attractive to counterfeit than bars, down the road I’m happy to be able to trade an ounce at a time rather than 10 or 100 at a time.
     
    Junk is fine but rounds are the easiest for me to get, because I don’t buy typically from dealers who sell bags of it, and locally I don’t have an easy to get to shop to go buy a handful at a time.
     
    The reality in my mind is this. The number of people who own silver in the world especially in developed countries is a pittance in terms of a % of the total population. if you have ANY position, you’re in better shape than the vast majority of people, so ANY is good. Get what you can.
     
    Talk of a mad max society where we are bartering in mercury dimes to me says this – if that is where we’re going, then I have alot more to worry about than what form my silver is in. My preparation plans are to be able to last a few months until shit gets figured out, not to live the rest of my life in a real life version of the videogame fallout.

    • I thought long and decided to do so: In this situation, I certainly will not sell my silver coins. But I also will not buy silver right now. Now very high margins on physical silver.
      So, I just bought 4 ounces of gold at $ 1680.
      If the price drops to $ 1600, I’ll buy another 10 ounces of gold.

  18. All you Brits and Europeans complaining (rightfully) about 20% value added theft. Get down to Brighton (sussex Uk) on saturdays in the North Laines street market (not far from station in Upper Gardner st). We sell half kilo and kilo bags of pre 1920 sterling coins at just 10% above the closing price of friday night i.e bullion minus 7.5% (for sterling) then plus 10%. Get there early , limited supply on weekly basis

  19. It’s hard to believe how much tax you have to pay in Europe. I wonder if it would be cheaper to have a friend in the US ship it to you if you could find a low enough rate? I just bought 200oz. at $30.71/oz. which I believe would be USD $1.08/gram.

    • Import tax ~6%, VAT 21%. You need to go illegal to pay less. Very maybe you manage to get a better rate when usuing specific entry points to the EU and know your way about declaration forms.
      Some people drive their cars our of Switzerland with silver. Get caught entering EU and not declaring…big legal problems. Happen to people, random check entering to Italy for instance, car get turned inside out. Oops.

  20. Mindbender: Why is a bitcoin encryption code worth more than one troy ounce of silver now?

    • Correllated to the actual cost of creating another one? A couple of supercomputer dedicated to do the numbers crunching.
      It makes the bit coins rare and costly, but not useful other than based on counterparty trust to get goods and services in return for them. In the best case, it’s harder to replace and counterfeit than a silver ounce.

    • Bit coins give me the jitters. I like the concept, but the fact that you need to save them on a computer, back them up, keep the back ups safe, may as well just buy a safe and go for gold or silver.

    • Bitcoins don’t have the most powerful financial entities and the world’s most powerful government pounding them flat every day of the week.  If they ever become commonly used they will be declared a competing currency and wrecked, just like silver.

  21. It always amazes me. How we can get a smack down in Silver and or Gold and then it only goes up a few pennies or dollars upwards..Same Ole Shit.. I have stated previously when it goes back over $35 dollars an ounce..Then maybe and break the $50 an ounce then we can start talking $100 an ounce silver. Until then Yawn….
     
    Hey Blythe…Keep your hair long so I can ride you like a mule!!!!!Keep stacking the smack!!

  22. The elite probably are placing longs, even leveraged, in all relevant commodities, for the world to work to supply fo a decade to come. We’ll all be slaves officially. And who’s going to set the prices for the future metal and produce they already own?

  23. Every ounce we take is 200+ ounces of paper they can’t dump, and an ounce of physical they can’t squirrel in their vaults.

    • I’d like to think that was the case but anymore I am wondering if these paper manipulators even care if there is ANY phyzz to back their crap paper.  All they wanna do is manipulate the paper and squeeze a profit from nothing.

  24. COMEX deliveries of gold for this month are already at 12800 contracts. Four times the volume of December.
    Falling prices have caused people to demand physical metal!
    Just wondering, if the silver delivery volume of March will also be 4x of the volume of the previous delivery month…

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