sprott

As part of our weekly webinar series, it was a distinct pleasure and honor to welcome Eric Sprott.
In this wide-ranging, 47-minute discussion, Eric offers his comments and analysis on:

  • Chinese gold demand and the continuing drawdown of the GLD.
  • Market conditions needed to facilitate an expansion of the PHYS and/or PSLV.
  • The mining stocks. Eric also offers his key metrics for evaluating miners that can make it through this current downturn.
  • What mistakes we’ve made over the past three years and how to prepare for the future.
  • The ongoing deviation of the gold: silver from historical norms.

Full MUST LISTEN interview with Eric Sprott is below: 

gold bottom

This bottom may be the longest yet.
This is psychological warfare and does not resemble the true PM physical market at all but it is contrived through manipulation to depress speculation so that physical buyers will stay away from PMs and trust bonds and equities while Ebola and ISIS rip up the daily headlines.
The DOW is off 1,000 points in just a few days, fear of deadly disease or decapitation stories is gripping the news and gold and silver have plummeted?

Does any of this make any sense?  FEAR UP, gold down?
Can you spell M-A-N-I-P-U-L-A-T-I-O-N ?
Stay thirsty for physical, my friends, the day of redemption draws near!

falling-bear

The outlook for gold is now more positive than it has been for some time. After a prolonged period of low volatility as funds invested in ever-greater risk, markets have snapped and volatility has jumped.
In short, we are swinging very suddenly from complacency to reality.

bottom of the barrel

Today’s big news came from China where weekly demand (gold withdrawals) came in at 68.4 tonnes. On a 7 day week this works out to 9.77 tonnes per day The world ex China and ex Russia (the keep all gold produced) produces 6.02 tonnes per day (2200 tonnes per year).
Hot on the heels of a huge importation of gold into India it sure looks like they are scraping the bottom of the barrel for metal.
Let’s head immediately to see what the data has in store for us today.

HarveyOrgan

 China is still in a holding pattern ready to pounce when needed.
The open interest on silver remains highly elevated.  Gold has a low OI with a low gold price.  Silver has a high OI with a low silver price.
Something has got to give!!
Let’s head immediately to see what the data has in store for us today:

HarveyOrgan

The bankers were all over gold and silver today but both metals rebuffed all attempts of containment.
The huge volatility is not too good for our banker derivative friends.
Let’s head immediately to see what the data has in store for us today:

silver smash

Silver investment demand has rocketed from less than 10% of industrial silver demand’s size, to nearly 50% of its size in just 6 short years.   
This is historic.  And it spells biiiiiiiig problems for the “biiiiiiig players”.

launch rocket vertical

In late 2013, I predicted the Fed would taper all the way to zero in 2014, and suggested that taper would turn the Dow into a “wet noodle”, while creating a rally in gold prices. That’s the opposite of what most analysts thought would happen in 2014, and it’s exactly what has transpired.
The risk of a complete global stock market meltdown is growing now. The Fed’s number two man, Stan Fischer, has thrown gas on the fire, by aggressively suggesting the Fed’s next move will be to raise interest rates.
Many investors are assuming the Fed can engineer another huge stock market rally with further easing.  
Instead, what they could experience is something more akin to an economic ice age.

HarveyOrgan

Let’s head immediately to see what the data has in store for us today.
First:  GOFO rates:
We are moving closer and closer to backwardation!!

sale

It is important to Tune Out the Mainstream Media Hype and Spin (or Gloom and Doom, as the Case may be) and look at the Real Fundamentals.
So consider here an overview of the prospects for Four Essential Resources: Potable Water, Gold, Silver and Crude Oil.
There is a Delusion, somewhat widely accepted, that if an Essential Resource is in Short Supply, the Supply Problem can be solved if one applies enough Appropriate Technology and Capital to it.
Realistically, though, for certain Essential Resources, supply shortages, (i.e., Demand “Longages” ) can be Managed, to a point. YesSolved, No.
This Reality provides both an Opportunity and a Threat — a Profit Opportunity for those who are aware of it, and a Threat for those who are not.

images

Less than 3 weeks after the S&P downgraded US debt in 2011, after gold’s initial spike to $1900, the Government’s renewed war on gold began.  The reason for this is that, in the face of trillions being printed by the Fed and trillion dollar deficits being incurred by the Government, gold was about to take out $2,000.
This was a milestone that would have likely triggered a flood of capital into both physical gold in this country and into the futures. A move like this would have destroyed the credibility of the U.S. dollar as the world’s reserve currency. It further would reflect the actual truth regarding the collapsing economic/financial condition of the United States.
To keep this from turning into an event that would hinder Wall Street and the Government elitists from completely looting the wealth from our system, they had to implement a massive program of market intervention in order to take down the price of gold and eliminate the signal it was sending to the world that the U.S. is in a state of slow collapse.
Your only defense against the poisonous cesspool swirling beneath the carefully crafted facade of lies and disinformation – short of just leaving the country – is to move as much of you liquid wealth as you can into physical gold and silver. Because when the U.S. Government’s war on gold is finally forced into capitulation, the collapse of our system will be unlike the collapse of any other superpower power nation in history.

gold bull

Internet Rodeo: Bull riders Turd Ferguson, The Doc, Claudio Grass, & Andy Hoffman stopped by for a round table interview, discussing the Switzerland Gold Initiative, direct democracy, & what’s happening right now in both the equities and precious metals markets.
Sit back, relax and enjoy the conversation.

crash

In the US, while much is made of an improving jobs scene, the fact remains that in relation to the size of the workforce there is a greater percentage of working-age people not employed since the 50’s era of the male dominated workplace.
This is creating a two-way pull for gold and silver.
Declining commodity prices coupled with a strong dollar have hit both precious metals hard since mid-August with gold falling $130 at worst, and silver having been in continual decline since mid-July.
However, both metals have become oversold and as a result have bounced firmly off support at $1180 and $16.75 respectively. The chart below is of gold from its all-time high and its 200-day moving average.