Eric Sprott recently joined Matterhorn Asset Management’s Lars Schall to discuss the metals, QE, and how the great Keynesian fiat experiment is likely to end for Western governments.
Sprott claims that the West will one day soon regret all of its financial policies including QE, ZIRP, and gold suppression, and that the major governments carrying out these policies are now insolvent!
When asked by Lars what would be the signal to exit the gold and silver markets and what he views as the top in gold Sprott replied: For me to see a top in gold you would need to see 1 of 3 things: A maniacal blow-off. 2. The Central Planners become financially responsible (not likely). 3. If they finally capitulated and made their currencies gold-backed (which I don’t suspect we will see). I think we have a long way to go before we see any of those elements manifest themselves.
Already beleaguered, gold suffered another sharp drop this week. When the minutes from the Federal Reserve’s latest policy meeting implied it might slow its QE3 bond-buying campaign “in coming months”, futures speculators responded with heavy selling. But their extreme gold bearishness is highly irrational, they are missing the forest for the trees. Taper or not, quantitative easing remains super-bullish for gold. [Read more...]
“If you really have conviction for this sector, Then you have to review—have the fundamentals changed? And if the fundamentals haven’t changed, that’s a good reason to stay. Another reason to stay, is that the best time to buy is when nobody wants it. We’re certainly in the case right now in the mining shares, where really—nobody wants them. So that’s a great time.
In all [bull] markets…there gets to be an acceleration point, where it becomes the ‘got to have’ investment…and once that happens you get an acceleration in price to the upside, and I really expect that to happen in the metals. It’s not here, it’s not now—but I’m very confident it will take place.” [Read more...]
Rick Rule: “Eric Sprott…is as aggressive as I have seen him since the year 2000…he is as is his style, the style that has made him a billionaire, very aggressively going into the marginal junior producers…companies that barely make money at $1400, but would be making $800 or $900 an ounce if the gold price went higher….
Eric believes that gold within 12 months will certainly be above $2000…[and] that this is the year where his portfolio will see ten to fifteen–10 to 20 baggers.” [Read more...]
Even Dennis Gartman, not known to be a Gold Partisan, can recognize Investment-Significant Market Realities when he sees them:
1) Gold is now launching into a Bull Trend, but a
2) “material seller” has been “stopping its advances each day”
While he has not been so candid in identifying that “Material Seller” as The Cartel as Deepcaster and others have long ago, he does usefully make the point that:
3) Gold, even though launching into a Bull Trend is still vulnerable to Take-down by that “Material Seller”
But the Takeaway Market Reality from all this is that it provides an Opportunity – we know Gold is going higher, so use the Take-downs as a Buying Opportunity. [Read more...]
Core gold positions should never be sold, regardless of your price targets or fundamental scenarios.
Gold is arguably the ultimate asset, so it probably can be viewed as wealth, rather than a tool to get wealth. Key core positions that are accumulated on severe price weakness should be held with an iron hand.
In contrast, trading positions could be “offloaded” at $1411, $1440, $1471, $1523, and $1577.
I have no idea if gold and silver have made an “ultimate bottom” or not, and I really don’t think any wealth is built by getting overly-obsessed with that question.
If gold has bottomed, that’s great news. If it hasn’t, investors can use profits booked now to buy lower prices, with some degree of comfort, rather than selling in terror.
What started out as a quiet and sideways week in the metals and miners, finished off explosively!
Technical gold trader Gary Savage noted in weekend commentary that Friday’s explosive finish in gold confirms yet another trading cycle, which may assault the 200 day moving average at $1500 oz. within the next two weeks. He further added that as a result of the strength of this close, he also expects a 10%-15% move in the miners this week!
We are witnessing A Historic Moment (and launchpad) For The Metals & Miners! [Read more...]
Legendary gold trader Jim Sinclair sent out an email alert this weekend advising readers that the current rally in gold and silver is the long awaited BIG ONE, that $50 silver is a given here, stating that the current move: This gold bull price phase is the one long predicted here that will return the most money to the fewest in the shortest period of time.
Sinclair states that as long anticipated, the bullion banksters have flipped and have clearly begun manipulating gold and silver to the bullish side, as the most massive move of the entire bull market lies directly ahead.
Sinclair’s full MUST READ alert is below: [Read more...]
The Gold price will rise dramatically in the future from numerous powerful forces and factors.
The following factors are directly relevant as to why the Gold Price will rise to $5000 per ounce, then higher. At the same time, the Silver price will rise multiples higher. The gains for Silver will most likely be a greater multiple than seen on the Gold price rise. The shortage for Silver is astounding and obvious to analysts and experts, except those who work for banks. The shortage for Gold is more subtle, as thousands of tons have been leased illicitly. Therefore the accounting is replete with double counting and outright missing accounts in false reporting.
The following are 13 fundamental and locked-in-stone reasons why gold will first hit, and then surpass $5,000/oz.
In this MUST WATCH interview, Sprott Asset Management’s Eric Sprott states that the Fed’s taper talk was smoke and mirrors intended to hammer the price of gold from day one, and that gold is ready to live its own life based on fundamentals!
Eric Sprott’s full MUST WATCH thoughts on taper, gold and silver shortages, bail-ins, and whether the next massive rally in the metals is underway is below: [Read more...]
As mentioned in last Sunday’s note, technical gold trader Gary Savage indicated a potential “1-2-3 Reversal” was forming in the miners. This week saw that pattern complete and confirm itself. Based on that confirmation, Gary now expects an explosive move higher over the next few months, in which gold should retest the September 2011 highs. [Read more...]
I had the opportunity this week to connect with Eric Sprott, Chief Executive Officer and Senior Portfolio Manager of Sprott Asset Management.
It was a powerful conversation as Eric spoke to the “gargantuan rise” he sees coming for precious metals and their corresponding equities, one which he expects will take gold to new highs within the next twelve months. Eric also spoke to the incredibly fragile Western financial system, and pointed out the one event which when it occurs—will completely take the lid off of gold! [Read more...]
Legendary investor Don Coxe, Chairman of Coxe Advisors LLP, and former advisor to the $540 billion BMO Financial Group, has issued a powerful new commentary entitled, “What Is China Up Too?“
In this dispatch, Don spoke to the recent Chinese acquisition of a centerpiece of the U.S. meat production industry, the terrible Fed governor nomination choice now on the horizon, and of particular interest to our readers—an updated commentary on gold.
In the 70′s…the huge breakout in gold did not occur at a time of the worst inflation…it’s once the people lose faith in the paper money and the policies that are being pursued, that you get the rush into gold.
So the great game is going on at levels where there are big expiring contracts in gold…our work has been trading in the commodity, & I can simply tell you that the drama is unfolding where you’ve got this gigantic short position, and eventually the shorts are going to get scared.
So it looks like from my perspective, that we’ve seen the low in gold, and now we’re going to watch who loses the most when gold moves to the upside, which…is virtually inevitable.” [Read more...]
“We [now] have confirmation that June 28th was indeed an intermediate cycle low and a yearly cycle low. I think this yearly cycle low is not going to get violated for the rest of the bull market and I think we are starting either another C wave advance or this is the bubble phase.
Each one of these C waves is getting bigger and bigger. The last one I think did 170% from the D wave bottom to the C wave top. This one should be bigger and especially considering that in my opinion we had some manipulation in the market.
So an artificial move down should make the move up that much more aggressive and go that much further. So if the last one did 170% and the miners did a little over 300%, this one should be bigger.
We’re probably going to see 200% or more in gold and 400% or 500% in the miners if this is a C wave. If this is a bubble phase, then we’re probably going to see 300% to 400% from the bottom [in gold] at $1179 to the bubble top. [Read more...]
Gold Trader: “This Entire Correction is the Move that Separates the 2nd Phase of Bull Market From the Bubble Phase!”
“If the dollar cycle has topped on week three like I think it has, then gold should deliver an extremely powerful rally over the next 4-5 months. If the dollar tests the 2011 lows during this yearly cycle bottom I think it’s completely reasonable to expect gold to test the all-time highs at 1900. A 700 point move over the next four or five months would certainly reset sentiment and set the stage for gold to move into the bubble phase of the bull market as the currency crisis in the dollar begins to develop next year.
I continue to believe that this entire correction is going to turn out to be the corrective move that separates the second phase of the bull market from the bubble phase.” [Read more...]