Today billionaire Eric Sprott warned King World News, “There is no doubt that central planners are trying to avoid a financial collapse here.” This is the first in a series of interviews with Sprott that will be released today which reveals what is going on behind the scenes with the increasingly desperate Western central planners and their gold and silver price suppression scheme.
Here is what Sprott, who is Chairman of Sprott Asset Management, had to say: “There’s been some discussion on the web of various dealers having difficulty fulfilling orders. I’ve confirmed through my channels that there has been a very big increase in demand in the last six to eight weeks.”
Eric Sprott continues:
“We can see that by looking at the US Mint statistics. For example, in this month, which is not complete yet, gold sales have more than tripled from the same time last year. Silver sales are up 120% so far. You can kind of sense that the demand for both gold and silver is back to very significant levels.
That’s not just in North America by the way....
Here is what Sprott, who is Chairman of Sprott Asset Management, had to say: “There’s been some discussion on the web of various dealers having difficulty fulfilling orders. I’ve confirmed through my channels that there has been a very big increase in demand in the last six to eight weeks.”
Eric Sprott continues:
“We can see that by looking at the US Mint statistics. For example, in this month, which is not complete yet, gold sales have more than tripled from the same time last year. Silver sales are up 120% so far. You can kind of sense that the demand for both gold and silver is back to very significant levels.
That’s not just in North America by the way....
“We read articles of how the Indian demand
has picked up here recently. They think they are going to have a big
4th quarter demand for gold.
There is (also) lots of
discussion about repatriating gold, and that goes to Germany, Austria,
now the Netherlands. I think the more instructive example was when they
(Austrian politicians) asked the Austrian Finance Minister, ‘What
percent of our gold is held in Austria?’ I think the number was
something like 13% or 17%, and the rest was in New York and London.
At the same time he
(Austria’s Finance Minister) mentioned they had been earning income on
leasing the gold. These central banks have deposited their gold with
the Fed or the Bank of England, and in turn it has been leased out. Of
course when gold is leased out it ultimately gets sold in its physical
form to someone who is not likely to return it.
For example, if our ETF
buys gold, it’s not going back. If the Chinese buy gold, it’s not
coming back into the system. If the Indians buy gold, it’s not coming
back. So the central bank has, in essence, an IOU from a bullion bank
on their balance sheet, but if they exercised that IOU, there is no way
they would get that gold back.
The central banks have
continued to supply gold into the market by leasing it out into the gold
market. And when they ask to get it back, whether it’s the Germans or
the Dutch or the Austrians, they are going to find out they are not
going to get the gold back and they don’t really own it. They have a
claim on it, but they won’t be able to exercise their claim.
That’s why I speculate they
(Western central banks) may have very little gold left. There is no
doubt that central planners are trying to avoid a financial collapse
here. Of course, one of the things is to try to keep the price of gold
and silver under control. That’s why, as you know, they will bend
anything to make the system look normal, including printing money which I
believe is totally farcical. That, I’m sure, would include selling of
gold which all the data tells me they must be selling.
I’ve always thought that
someday they were going to look in the cupboard (vaults) and say, ‘Look,
we’re not going to win this thing anymore, and it will just end. I
don’t know when that day happens, but every day that I look at the gold
market, the situation just gets tighter and tighter (in the physical
market).
I think there is lots of
evidence of this tsunami of interest coming back into the gold market.
Eric, you would find it interesting that most of these (financial)
experts say that you should have 5% or 10% of your money in gold. Well,
today gold represents 1% of all of the financial assets in the world.
How can you go from 1% to
5% when you only have a 1.5% increase in supply each year? It’s
absolutely impossible. I find it almost hilarious to think that a mass
(of investors) would try to get to that level because it would just be
impossible. The only way you can go from the current 1% to 5%, is
essentially to have the price go up by 500% and I think that’s probably
more likely what is going to happen.”
kingworldnews
kingworldnews