This
is the third and final in a series of interviews with Sprott that has now been
released which reveals the increasingly desperate situation Western central
planners face as we head into 2013.
Eric King: “What has you
worried going forward?”
Sprott: “What has me
worried as an investor is that we are up against some powerful forces. I look
at the minutes of the (Fed) meeting as, okay, here they go, they are trying to
force the price of gold down. It’s a fight every day. I mean it’s trench
warfare. And maybe they can convince people that they shouldn’t own gold. They
are trying their damnedest.
Luckily we have many allies on our side these days
that weren’t allies before. We have the Chinese buying, the Russians buying,
all sorts of countries are buying gold, and in large quantities. We see the
American public buying gold, Canadian public, Europeans (also) buying gold and
silver...
“It doesn’t take many people to think that there is
something wrong with the system and want to move into gold, when gold represents
less than 1% of all financial assets. It doesn’t take much of a turn by the
people who own the other 99% to (dramatically) change the price of gold.
We’ve had some great thinkers who have come around.
I refer to Bill Gross, Kyle Bass, Ray Dalio, I mean there are a lot of people
realizing it’s the time to be in gold and silver. I think they are acting it
out by the way (by purchasing physical gold and silver).
The Western central banks have for sure been
supplying the gold, and they are probably in a jam. In fact, I almost look at
those minutes that came out as recognition of the real problem they are facing,
that the demand for physical gold is just overwhelming them. And they have to
keep this volatility in the market so that there isn’t a groundswell of interest
in terms of buying it.
But I have no doubt the physical story will win the
day, ultimately, and it’s not very far away. I was not surprised to see the US
Mint halt sales in mid-December and say they wouldn’t start them again until
January 7th, which is what they do when things get tight. But I would imagine
you’ve had people telling you the markets for silver and gold are tight, and
there is no way they can’t be based on all of the work that we do.
But we have these forces at work in the paper market
that want to make us think there’s no upside here. I can assure you there will
be plenty of upside. We’ve gone up 12 years in a row, and with a weak year last
year, I suspect we’ll have a way better year this year. And some day it will
break (massively to the upside).
You see all of the concerns, whether it’s the people
in Australia, Austria, Germany, ‘Where the hell is our gold?’ We’ll find out
that the gold is not there. I don’t think they (central planners) know where
their (other countries) gold is. It’s probably been sold would be my guess.
Our analysis says that gold was leased and sold into the market. And someday,
when some country goes to repatriate it, they are going to find out it’s not
there.”
at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/6_Sprott_-_Demand_For_Gold_Is_Now_Overwhelming_Central_Banks.html
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