Play

SprottIn the wake of Japan announcing negative interest rates and chaos in the silver market with Thursday’s LBMA silver price fix smashed .84 below spot prices by the 6 fixing bullion banks, we welcomed The Admiral of the Silver Market, Eric Sprott himself to help us break down all the action.
In Sprott’s words, the sheer brazenness of the silver fix smashReeks of Desperation“.

The discussion offers a unique look into the mind of the Billionaire Asset Manager, as Sprott shares insight into the thought process on how he evaluates whether a market is experiencing a bottom, and the legendary investor also shares the greatest financial lesson he’s ever learned…

 

Silver rounds SD Bullion

  • Sprott Breaks Down London Fix Silver Manipulation: It Reeks of Desperation!  The sheer brazenness to think you can just put out whatever price you want…
  • How Does Sprott Evaluate if a Market Bottoming Process is Underway?
  • With the Value of the CAD Plunging, Have Canadians Started Turning to Gold & Silver For Wealth Preservation?
  • Sprott Warns on Systemic Collapse: We Were Right There in ’08, Here We Are 8 Years Later, & the Situation is Worse!
  • Sprott Reveals Gold and Silver Demand is WAY Off the Charts- Shortages Are Popping Up Again!
  • COMEX Down to 2 Tonnes of Gold- Will Eric Soon Be Able to Take the Last Physical Gold Bar out of the COMEX?

Full MUST LISTEN Interview With Billionaire Eric Sprott is Below:

 

There’s an old saying on Wall Street.  The first five trading days of January often sets the tone for the rest of the year.  Think of it as trader folklore, and historically, there is some truth to the pattern.

Well, to heck with the first five trading days.  January’s stock market action has been downright ugly!  If it wasn’t for the Bank of Japan’s announcement of negative interest rates on Thursday and the Pavlovian ringing of the global liquidity bell, we wouldn’t have seen the S&P 500 gain 2.43 percent on Friday’s close.  That gain repaired some of the mauling sustained by the benchmark.  Nevertheless, carnage this January was exceeded only by the downside action of January, 2009.
sp-500

I’ve warned many times this month on Weekly Metals & Markets as well as on Dr. Dave Janda’s show that we’re most likely going to see an ongoing bear market decline that takes time to unfold, not unlike the 2000 through 2002 and 2007 (in select assets) through the March, 2009 nadir.  Spike-down crashes are possible.  But an ongoing bear market, with plenty of “normal” bear market rallies is more common than spike down events like Oct., 1987.  In fact, don’t be surprised if we see the S&P 500 rise, on balance, during the month of February.  It’s ripe for a bounce, and with the Bank of Japan upping stimulus, the spice will flow;  more global liquidity is coming, and “Super Mario” already “surprised” the markets with a doubling down on his “whatever it takes” mantra.

Frankly, while I can’t prove this, I think it’s a reasonable speculation to assume that the Bank of Japan is playing its role, taking its turn drinking from the “currency war canteen,” as Jim Rickards likes to joke.  It’s reasonable to assume the BOJ’s action last night is fully coordinated with the ECB, the Fed and the Bank of England.  You can probably toss into the mix the Swiss National Bank and the Bank for International Settlements as well.

dollar index

The strong US dollar has been contributing to global deflationary forces upsetting financial markets.  The transmission mechanism takes many forms, including the impact to oil (and in turn, degrading balance sheets of energy companies), and to the dollar denominated debt burden faced by developing countries that piled on debt after the Fed led the world down the path towards our zero interest rate paradigm.  This debt doubles as collateral on the balance sheets of energy companies, and the treasuries/central banks of developing countries.  In a roundabout way, the rising dollar is sending earthquakes through the global shadow banking system and financial markets.

yen to dollar

euro to dollar

The dollar took a breather during early January.  But as you’d expect, the dollar leaped higher today in relation to the Japanese Yen.  Interestingly enough, the Euro also rose against the US Dollar – and has been rising over the last few trading days.  There’s every reason to expect the dollar to keep rising in the short-term, and this is going to probably put pressure on precious metals, quoted in US dollar terms.  But everywhere one looks, incoming economic data paints a picture of the US having already entered a recession.  Even official government stats paint this picture.  At some point, the “currency war canteen” is going to be passed to the US and the Fed is going to take a swig.  The reality of this transition will start to be priced into markets before Janet Yellen reaches for the liquidity canteen, and I expect this shift to start helping precious metals with a dollar tailwind starting within a couple of months.

But well before the dollar tailwind starts to help, we’ve got plenty of forces countering the dollar’s impact.  The laws of economics haven’t been repealed, and the supply/demand trends for physical metal Mr. Sprott discusses will pull the sector higher.  But don’t be surprised if we have another few months of cartel management and a generally stronger dollar before precious metals start to make a sustained move higher.

Weekend Links:

Find the Lowest Prices on Gold Coins and Bars at SD Bullion
The Most Trusted Source of Gold Bullion!

  1. Sprott’s prediction on silver being the play of the decade over 3 yrs ago and junior miners being 30+ baggers have proven to be horrific calls. You cannot be this wrong for so long by accident…He must have sold out to the cartel.

    • Oh come on.  That’s ridiculous.  Given that unprecedented fraudulence and manipulation has been used to keep kicking the can down the road it’s not a surprise that no one’s predictions have been right on timing.

    • hey bob. i see you here often, always your comments are negative about metals and analysts.

      between you and sprott, i know who works for the cartel. it ain’t sprott. the word for it is shill. they’re so easy to spot.

    • No, Mr. Sprott has not sold out to the cartel.  Everyone has been wrong, because they use the logic and the history of the markets as a guide to market prognostications.  What they fail to comprehend is the extent to which the the central banks have accumulated vast financial power over a 300 year period.  These entities are extremely secretive and are masters at manipulating markets and market perceptions on a global scale that is unprecedented in human history.  Technical and fundamental market analysis is useless in such an environment.  These international criminals have plugged every hole in the markets that should have brought the entire system crashing down worldwide.  Every single crisis has been brought under control and nobody knows when this system will end.  The wise market analysts do not set dates, nor make short term predictions.

  2. I know this is completely off topic, but has anyone noticed that the “Man” figures were not replaced? The age of the 80’s where the U.S. kicked ass, Tom Cruise, Arnold, Kurt Russel, Sylvester Stallone, Hell, even Matt Damon for a bit there, Jet Li, Jackie Chan… All of the symbols of masculinity have faded with age, not to be replaced by Hollywood!? Action films sell, violence sells, so why all the sniveling lead male actors? Comedians and romance is what we have. (The Rock excluded, but hes not performed in THAT many action films, just a few in 10 years) hell, even our President cries everytime hes on T.V. Is Michelle beating him? The Govt. Gives women legal power to crush our mens balls….Did manhood DIE with my generation, leaving the guard of freedom to a bunch of spinless male populous, led by a brokeback Hollywood? This misguided wave of cowardice is going to leave this country undefended. Im actually hoping Trump can draw the spinless poison out of mens veins, to once again say what they think. If anything, most of us came out of the brow-beatin closet to cheer him on for having a set of gonads. (A set most of us lost to “political correctness”.)

    Just voicing my observances. No action superstars for kids to look up to! Dont play with wooden guns or swords, or youll be expelled! Dont even chew a sandwich in the shape of anything not politically correct!

    • Thought this might amuse you:-

      For those that don’t know him, Major General Peter Cosgrove is an Australian.

      General Cosgrove was interviewed on the radio recently.

      Read his reply to the lady who interviewed him concerning guns and children. 

      Regardless of how you feel about gun laws you have to love this!

      This is one of the best comeback lines of all time. 

      This is a portion of an ABC radio interview between a female broadcaster and General Cosgrove who was about to sponsor a Boy Scout Troop visiting his military Headquarters. 

      FEMALE INTERVIEWER:

      So, General Cosgrove, what things are you going to teach these young boys when they visit your base?

      GENERAL COSGROVE:

      We’re going to teach them climbing, canoeing, archery and shooting.

      FEMALE INTERVIEWER:

      Shooting! That’s a bit irresponsible, isn’t it?

      GENERAL COSGROVE:

      I don’t see why, they’ll be properly supervised on the rifle range.

      FEMALE INTERVIEWER:

      Don’t you admit that this is a terribly dangerous activity to be teaching children?

      GENERAL COSGROVE:

      I don’t see how. We will be teaching them proper rifle discipline before they even touch a firearm. 

      FEMALE INTERVIEWER:

      But you’re equipping them to become violent killers.

      GENERAL COSGROVE:

      Well, Ma’am, you’re equipped to be a prostitute, but you’re not one, are you?

      The broadcast went silent for 46 seconds and when it returned, the interview was over.

    • If Democrats would stop killing people, the murder rate in the US would drop by about 90%. Taking out the 10 most violet US cities (Detroit, Chicago, New Orleans, Memphis, Trenton, Oakland, St Louis, Cleveland, Baltimore, Milwaukee, Newark, etc.) -all of which are cities that have been run by Democrats for generations, would drop the US to one of the least violent nations on earth.

    • GBS

      That’s hilarious. What makes it even funnier is that he is currently the Governor General of Australia and has the power to remove the Prime Minister.

    • Your technically right, Mike Trike.  The story is an urban legend, but it is cool just the same for the point it illustrates.  A few different versions have floated around, all great illustrations of the hypocrisy of the far left.

    • “Run by Democrats” — oh man, that’s rich.  Portland and Denver are “run by Democrats” as well and they’re two of the nicest, most progressive cities in the USA.  Please do a little demographic research on the metropolitan areas you listed and see if they have anything in common other than being “run by Democrats”.

       

       

       

  3. @shamus001   The movie makers are trying to keep Ahnold, Rocky and even Bruce Willis in the films  They’re looking a little like they been rode hard and put away wet.  You are so correct The country needs to home grow some men with nads and not these wussy sorts who try to pass off as bad guys.

    The male actors today are either bangers, psycho killers with gender identity problems, girly men in CG cartoon films or some sexually indeterminant  dickless wonder, P Whupped by a bitch goddess from the land of the baritone women, who gives up his stones to his woman,  who then has to go out and save the world because his therapist was late to session.

    Don’t get me wrong  I like a strong woman who can shoot a pistol, ride a horse and can take my crap and give it back.  But men need to be men and not some confusilennial douchenozzle who can’t figure his ass from a hole in the ground

  4. Keith Weiner is the only “expert” worth reading and taking note of.

    I urge everyone here to read his report on the fundamentals of Gold and Silver and what he expects for 2016 going forward.

    https://monetary-metals.com/monetary-metals-brief-2016/

    At the end of the above briefing there is the opportunity to read the full report for free.   It really is worth doing and makes all the other ‘gurus’ that pontificate about Gold and Silver useless bags of wind.

    • The man has made millions in the precious metal space.  I would much rather hear what he has to say as opposed to the pundits with big opinions, but little wealth.  All hat and no cattle as they say in Texas.  Right Ranger?  I often get approached by financial planners or investment counselors seeking my business.  First thing I ask for is their personal financial statements.  Suffice to say that is where the conversation stops.  I want the counsel of people doing better than me, not the other way around.  Make sense.

  5. @GBS  thanks for the link  I signed up for the report

    Here is the rest of the interview if the General was allowed to continue

    Interviewer  Are you calling me a prostitute?

    General   No ma’am  Just noting potentials. BY the way would you sleep with me for $50,000?

    Interviewer  I’m no fool, of course I would!

    General   Well, then let me ask you. Would you sleep with me for $50

    Interviewer.  Of course not!  What do you think I am, a common prostitute?

    General.  No.   We’ve already determined what you are, now we’re just dickering on price.

     

     

  6. I wish Sprott would explain why, in this supposed environment of scarcity of physical metal… why his PHYS and PSLV funds are not being raided with massive redemptions for the Phizz???  It IS allowed, I believe, if you hold $100K worth or more…

    • @JustTheFacts are you referring to Sprotts physical holdings? Please forgive me if Im misunderstanding your question, but in that case, those metals are held in a NON banking allocated vault. Anyone holding physical doesnt keep all their eggs in one basket. (Ideally)

      Regarding Sprott physical, I find it preferrable to hold a 50/50 allocation; meaning 50% phys within my grasp in the U.S. (on accessable property(ies) and 50% in a vault in a nearby country that I can drive to. (I live in Wa.). As for placing my stash in Shanghai, during a SHTF – it might as well be on the moon!

      So right now, as we speak, would I keep 100k in silver here in the U.S.? Sure, but if I had 200k in phys, I would keep 100k at Sprott.  (I dont have 100k fyi, but in truth, I would keep 20 of that at sprott)

       

    • Now that Japan has gone negative rates the world bond market will start to deterate into all negative yeilds before to long half of Japan and one third of France and Germany are negative!!! I have watched this really pick up speed in the last two weeks. At this rate Japan will more than likely go all negative in less than two months!!! That is what the elite get for playing in the backdoor!!! This negative rate crap has to cease or we willsoon cease to exist on paper fiat!!!
  7. Do the opposite of Sprott. He dumped his PSLV at the top and all the way down. He has dumped most of his junior miners. He is a lying POS.

     

    http://www.zerohedge.com/article/sprott-sells-35-million-worth-pslv-across-different-funds-week-between-april-18-and-april-25

    http://kiddynamitesworld.com/why-is-eric-sprott-selling-pslv-shares-fast-and-furiously/

     

    https://gold-forum.kitco.com/showthread.php?137645-Sprott-dumps-his-gold

     

    Here is Eric Sprott pumping Metanor and Veris Gold.

    http://www.silverseek.com/article/interview-eric-sprott-12858

    Immediately after the pump article Sprott dumped all his Metanor shares and destroyed the share price. He didn’t get the chance to dump his Veris shares before it became worthless.

     

     

    • I had shares in San Gold, Atna Resources and Veris Gold.

      All stocks he put millions into in private placements.

      All are bankrupt now BUT,

      Sprott now owns the former Veris Gold mine lock stock and barrel.

      Also the largest shareholder of PSLV and a large shareholder of PHYS are none other than

      Morgan Stanley.

      So they own the gold and silver.

  8. Why do you care about losing your “freedom” here on earth if you believe in an eternal life?  It just seems so trivial to even mention but you seem to be all worked up over it.

    _________________________________________________________________
    KMA’s previous comments in this thread that you were responding to were removed. See above..Moderator

  9. Have not listend to ES in a while, but this time I did. While he is still talking the exactly same book as 4 years ago, I still believe he will be proven right. Stacking at this point is a waiting game. The inevitable collapse of fiat will come and nobody except for maybe a handful of insiders know “when”. So stay solvent (so you do not have to liquidate your metal savings) and stack shiny and/or yellow… It may be another few years or just a few months… but THE DAY is getting closer. Good luck to all, we will all need it.

    • No more miners? :).

      Another great Silver Recliner Report M-45. Good to hear the report again. I’m glad you did another one. Keep stacking. You too 4OZ.

    • Charlie, You are the first guy on SD, that I looked for and wanted to listen to. Your laugh is infectious. Don’t stop with the videos. I love you man!

  10. Damn  I just spent nearly 100% of my FIAT to buy silver and now Doc comes out with Buffaloes at 59 cents over spot, no limit and no order size.

    @Doc, you’re killing me.  Now I gotta go rob a bank to get more benjamins.

    Hmmmm,  that sounds like a good plan. Fun and profitable 😉

    • Remember a few months back  when Bill Holter asserted it would be impossible to buy physical silver in within a week? Why people give him any credibility I will never know.

    • Vegas stop trying to understand these dolts.  It will kill your brain cells.  I’d also suggest that you don’t attempt to reason with them.  Either mock them or move on 🙂

  11. Yeah ranger everyone has been wrong….  How is life going in your little box?  This is what happens when you only listen to voices that confirm your already held beliefs.  The groupthink here is classic.

Leave a Reply