Sprott - We Are Seeing Unprecedented Events In Gold & Silver
On the heels of JP Morgan announcing its desire to exit the physical commodity business, today billionaire Eric Sprott spoke with King World News about the unprecedented events taking place in the gold and silver markets. This is the second in a series of interviews with Sprott that will be released today. Below is what Sprott, who is Chairman of Sprott Asset Management, had to say in part II of this remarkable series of interviews.
There
are lots of reasons for people all over the world to own gold. They
can see what their governments and central banks are doing with the
printing of money.
Sprott: “It’s
not going to work. Backwardation is telling you that people are
unwilling to sell their gold at a price today where they can buy it in
the futures market at a lower price, and get the use of the money for
three months, and they are not prepared to do it. That’s what
backwardation tells you -- that there is a shortage of physical gold
today and that people aren’t willing to speculate that they are going to
get delivery in the future. So all of the signs point to extreme
tightness in the market.
Source
On the heels of JP Morgan announcing its desire to exit the physical commodity business, today billionaire Eric Sprott spoke with King World News about the unprecedented events taking place in the gold and silver markets. This is the second in a series of interviews with Sprott that will be released today. Below is what Sprott, who is Chairman of Sprott Asset Management, had to say in part II of this remarkable series of interviews.
Sprott: “The
price (of gold) being were it is is just a joke. It’s been totally
manipulated, and when people realize what the real situation is in
physical gold I think we will see a very quick run-up (in price).
“So I think we will
certainly see new highs. I have this vision that gold goes to $2,000
(initially), that gold stocks could triple from here, and I fully
believe they will. So there are huge opportunities for people in both
the equities and metals markets.
The
price of gold has been suppressed. It’s been suppressed to make people
think that fiat currencies are sound. They aren’t sound. We’ve never
had an audit of the Fed gold or the Treasury gold since 1954. The
Germans can’t get their gold. It’s obvious that there is an extreme
shortage here.
Of
course the Chinese have stepped up their buying. The Indians had
stepped up their buying massively until the cumulative effect of all of
these measures seems to have officially kept imports down. We don’t
know whether unofficially they are down because their is a lot of
smuggling (of gold) into India.
So we
won’t see the data points because it’s all gone underground. But I
don’t think you are going to dissuade the Indians from buying gold.
They will find a way to buy it. So there is an extreme shortage and the
smartest thing anyone can do is just hold on to their metals because I
think we have a great ride in front of us.”
Eric King: “With regards
to the physical shortage in gold, the normal things that remedy that --
lease rate activity and some of the other tactics that have worked in
the past, they don’t seem to be working this time. I find that
interesting.”
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