• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Sprott: "Manipulation Of Gold By Central Banks Cannot Continue In 2014"

Tyler Durden's picture




 

With Deutsche Bank quitting the price-setting panel for gold and Bafin bearing down on the manipulators, Eric Sprott provides some more color on where the manipulation in the precious metals markets is underway (and when it will end)...

Submitted by Eric Sprott of Sprott Global Resource Investments,

Introduction

As we very well know, 2013 was a difficult but also puzzling year for precious metals investors. The price of gold, silver and their related equities declined by a significant amount while demand for physical bullion from emerging markets and their Central Banks was exceptionally strong.

A common argument that has been made to explain the precipitous decline of the price of precious metals in 2013 is of investors’ disenchantment with precious metals, which had been piling up in exchange traded products as a way for investors to gain exposure to the metals. Proponents of this theory point to the large declines in the total holdings of those ETFs as evidence of investors fleeing the precious metal trade. As shown in Figure 1, the price of both gold and silver suffered very significant declines throughout 2013. Therefore, if this explanation is correct, one would expect the total ETF holdings of both metals to be lower as well.

However, this is not the case. As shown in Figure 2 gold ETFs suffered large redemptions whereas silver ETFs saw their holdings remain more or less constant throughout the year, and this without any observable change in trading patterns in the two largest ETFs; GLD and SLV (Figure 3 shows the ratio of the trading values in the ETFs over time). If redemptions are a symptom of investors’ disenchantment with precious metals as an investment, shouldn’t silver have suffered the same fate as gold? Indeed it should have, but we think the reason silver ETFs were not raided like gold was that Central Banks do not have a silver supply problem, they have a gold problem. As we have argued before, the raiding of gold ETFs is bullish for gold because it reflects an imbalance in the physical market.1

Figure 1: Gold and Silver prices declined significantly in 2013
maag-01-2014-1.gif
 Source: Bloomberg

Figure 2: ETF Holdings - Troy oz (millions)
maag-01-2014-2.gif
Source: Bloomberg, tickers ETSITOTL & ETFGTOTL

In this article, we further argue that the April raid on gold and gold ETFs almost backfired by creating a tsunami of buying in India and increased demand to unsustainable levels. In May 2013 alone, Indians imported 162 tonnes2 of gold in a market where monthly global mine production is about 182 tonnes. A continuation of this trend, coupled with strong buying from other Emerging Markets and their Central Banks, would have been overwhelming. But, the response was swift. We suspect that, at the behest of Western Central Banks, the Reserve Bank of India reacted by enacting, in incremental steps, restrictive measures to prevent gold imports (See Figure 4 for a timeline of the major changes made by the Indian Government).3

Figure 3: Traded Value - Ratio of SLV to GLD
maag-01-2014-3.gif
Source: Bloomberg. Traded Value is calculated by taking the total trading volume for a quarter and multiplying it by the average price over that quarter. A ratio of 1 indicates that SLV traded as much, in $ terms, as GLD.

Figure 4: Efforts to Curb Indian Gold Imports
maag-01-2014-4.gif
Source: Bloomberg, Economic Times 

 

Supply and Demand Imbalances: The Indian Effect 

We have already discussed at length the supply and demand imbalance in an Open Letter to the World Gold Council, asking them to revise their methodology because it grossly understates the amount of demand coming from emerging markets.4 Our gold supply and demand table (Table 1) reflects the latest available data (2013 Q3 in most cases). World mine production, excluding Chinese and Russian production still stands at about 2,100 tonnes a year. Chinese net imports most likely exceeded 1,700 tonnes for 2013 (81% of world mine production) and demand from the rest of the world is rather stable.5

The overall picture has not changed much since our last article, with the exception of Indian imports. As of the second quarter of 2013, India had cumulative net gold imports of 551 tonnes, which annualizes to 1,102 tonnes.6 However, Q3 data shows net imports of only 31 tonnes (for a total of 582 tonnes YTD), which annualizes to 776 tonnes. 

This incredible loss of momentum for “official” gold imports was the result of concerted actions by the Reserve Bank of India and the Indian Government. While the “official” justification for those restrictions is the large Indian current account deficit, this argument makes little sense. According to government officials, Indian’s taste for gold and the corresponding imports worsens the country’s trade balance, worsens its current account deficit and puts downward pressure on their currency, the Rupee. 

But, without going into too many details, the classification of gold as a “good” in the trade balance is at best misleading. Since gold is more of an investment vehicle and is not “consumable” per se, it should instead be accounted for in the capital account of the balance of payments instead of the current account. Indeed, Switzerland, which is a large net importer of gold, reports its trade balance “without precious metals, precious stones and gems as well as art and antiques” to reflect fact that those are “investments” rather than consumption goods.9 In this case, why should India be any different and report their trade data excluding gold? To us, all the fuss about gold imports by the Indian Government is a red herring.

So, without the intervention in the Indian gold market, the shortage of gold would have wreaked havoc in the market, a situation that Western Central Banks could not tolerate.

 Table 1: World Gold Supply and Demand 2013, in Tonnes
maag-01-2014-5.gif 
Sources: GFMS data comes from the WGC’s “Gold Demand Trends” publications for 2013 Q1, Q2 & Q3. Chinese mine supply comes from the China Gold Association and is up to October 2013, the annualized number is a Sprott estimate.8 Russian mine supply comes from the Union of Gold Producers and is up to 2013 Q3. Chinese data is taken from the Hong Kong Census and Statistics Department and covers the period Jan.-Nov. 2013 and is annualized to account for the missing month. Changes in Central Bank gold reserves are taken from the IMF’s International Financial Statistics, as published on the World Gold Council’s website for 2013 Q1, Q2 & Q3 and include all international organizations as well as all central banks. Net imports for Thailand, Turkey and India come from the UN Comtrade database and include gold coins, scrap, powder, jewellery and other items made of gold. The data is for 2013 Q1, Q2 & Q3. ETFs data comes from GFMS as well.

 

Conclusion and Outlook for 2014

As demonstrated in our Open Letter to the World Gold Council, there was a large supply-demand imbalance in 2013. The evidence presented here suggests that the decline in the price of gold in mid-2013 and the subsequent raid of gold ETFs (but not silver ETFs) was engineered by Western Central Banks to help solve their physical gold supply problem. However, the resulting increase in Indian gold demand exacerbated the problem. The solution was to restrict Indians from importing gold by all means possible in order to help the Western Central Banks regain control of the gold market.

However, the rate of drain in gold ETFs cannot continue forever; at the current pace of 930 tonnes/year, there are less than two years of gold left in ETFs. Moreover, Indians have proved highly creative at finding ways around import restrictions.10 Smuggling is on the rise and will most likely increase as smugglers become more sophisticated. Overall, we believe that interest in physical gold from emerging markets will remain a driving force.

Besides, mine production is unlikely to grow, as reflected by the significant decrease in capital expenditures expected for the major gold producers (Figure 5).

Accordingly, we believe that the manipulation of gold prices by central banks, as demonstrated by the above analysis, cannot continue in 2014. Therefore, we expect substantial increases in the price of precious metals as the true shortages become obvious.

Figure 5: Capital Expenditures ($mm) - XAU Index Members
maag-01-2014-6.gif 
 Source: Bloomberg. Consensus analyst estimates are used for years 2013-2015.

 

P.S. Due to recent developments, we would also like to highlight some related media stories

Jan. 17, 2014: Germany’s top financial regulator said possible manipulation of currency rates and prices for precious metals is worse than the Libor-rigging scandal

Jan. 17, 2014: Deutsche quits gold price-setting as regulators investigate fix (Did the regulators ask them to?)

Dec. 13, 2013: Bafin Said to Interview Deutsche Bank Staff in Gold Probe

Nov. 26, 2013: U.K., German Regulators Scrutinize Gold, Silver Pricing

Sept. 9, 2013: Sprott Thoughts: A Leaky Fix

 

1 See, for example, “Redemptions in the GLD are, oddly enough, Bullish for Gold”.
2 http://in.reuters.com/article/2013/06/03/gold-india-imports-idINDEE95207H20130603
3 See “Do the Western Central Banks have any gold left?”. Sprott Asset Management LP, Markets at a Glance May 2013.
4 See the full article at: http://www.sprott.com/markets-at-a-glance/open-letter-to-the-world-gold-council/
5 As a reminder, because of our methodology which uses net imports as a proxy for total demand in countries that do not re-export gold, we exclude the “total industrial demand” estimate from the GFMS to avoid double counting. Thus, we underestimate total gold demand because we do not include industrial demand from the countries other than China, India, Turkey and Thailand.
6 As reported by the UN Comtrade Statistics. We use the total dollar amount reported and average quarterly prices to infer the total amount of gold imported and exported.
7 This is calculated by taking the total consumer demand for jewellery, coins and bars for 2013 Q1 & Q2 from table 10 of the WGC’s “Gold Demand Trends” and subtracting from it demand from the individual countries we have listed in the table (China/Hong Kong, India, Turkey, Russia and Thailand).
8 http://translate.google.ca/translate?hl=en&sl=zh-CN&u=http://www.cngold.org/&prev=/search%3Fq%3Dcngold.%26client%3Dsafari%26rls%3Den
9 See the Swiss Customs Administration website: http://www.ezv.admin.ch/themen/04096/04101/index.html?lang=en
10 See, for example: http://www.thestar.com/business/economy/2013/12/27/insatiable_appetite_for_gold_fuels_indias_smuggling_industry.html http://in.reuters.com/article/2013/12/03/india-gold-smuggling-idINDEE9B20HY20131203 http://articles.timesofindia.indiatimes.com/2013-12-29/chennai/45674552_1_airline-staff-gold-smuggling-flight-attendant

 

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Fri, 01/17/2014 - 22:42 | 4343074 fonzannoon
fonzannoon's picture

Another meh.

Fri, 01/17/2014 - 22:54 | 4343097 DoChenRollingBearing
DoChenRollingBearing's picture

I have a LOT of respect for Eric Sprott, but I think that the central banks can indeed continue the priice manipulation of gold.  Until they can't.  And when would that be?  I contend that no one knows.

Fri, 01/17/2014 - 23:09 | 4343126 seek
seek's picture

I think he does make a compelling argument -- the same one we see related to COMEX -- that the supplies are getting sucked dry. They can manipulate up until the point where there's no delivery.

Once again FOFOA is prescient in how this is playing out -- they'll keep the price suppressed until there is none available to buy. At that point they have the devil's choice: let gold rise to reflect its true value, or sell physical to manipulate the market.

Remember that the masters of central planning are masters at painting themselves into a corner. Gold is just another corner for them to get stuck in.

The last factor to consider is that there will be no New World Order, with a single global central bank. Both China and Russia are seeing to that. Without absolute control TPTB can't prevent the true market from re-emerging. Their plans are crumbling -- they crumbled in 2008 -- and they've just been trying to make the impossible happen since. It ain't happening.

I think two years is a pretty good prediction -- supplies run out around then, and it's doubtful much new mining capacity will come online -- definitely not if the price is suppressed the entire time.

2016. Right in the 2015-2018 window, election year. It also lines up the with template of the 1930s pretty well too.

So, we have 24-36 months before gold becomes very valuable, and life becomes very hellish. I would imagine we'll be seeing some pretty draconian measures put into place before then.

Fri, 01/17/2014 - 23:16 | 4343139 fonzannoon
fonzannoon's picture

I hear you Seek but I feel like the end is always a year or two away. This has dragged out too long. Yen is right i'm a broken man. I need to go to the Cheesecake factory and put my name down and get one of those buzzers. then ride around the mall on my scooter until my table is ready and they buzz me. The superbowl is coming. I hope the giants of new york defeat the packers of green bay by kicking an oblong ball through a giant H! In the face!

(I've lost it) 

Fri, 01/17/2014 - 23:43 | 4343189 Pinto Currency
Pinto Currency's picture

 

Koos Jansen's work estimates China's gold import at 1,436 tonnes of gold (delivered through the  SGE) + another estimated 500 tonnes imported by the Chinese central bank.

That gives total estimated Chinese imports and delivery through these two channels 1,946 tonnes plus any other smuggled amounts and amounts received from African nations in return for delivery of Chinese manufactured goods.

In general, GFMS numbers appear to be confused and should probably be taken with a bag of salt.

http://www.ingoldwetrust.ch/shanghai-gold-exchange-physical-delivery-equals-chinese-demand-part2

Sat, 01/18/2014 - 02:15 | 4343294 CognacAndMencken
CognacAndMencken's picture

 

 

I haven't listened to anything Sprott has said since he went around on a media blitz in early 2011 pumping his PSLV with all sorts of hyperbolic fear-mongering nonsense, while quietly dumping his shares at the same time. Has anyone other than Sprott made a buck on PSLV? From its inception, it's been a loser except for a few months in early 2011 when all the silver pumpers were humping PSLV like a dog. It's gotta be one of the worst performing IPO's of the past several years.

Just out of curiosity, how did the silver pumpers back-peddle from all their bullshit like: "silver to the moon!....$60 by next week!... The silver industrial panic is imminent!.... Comex silver inventories are being raided!....Silver shortage will destroy JPM! .....Silver will reach parity with gold by next month!" ????? How did Sprott and all the hillbilly silver pumpers excuse themselves for being so utterly, laughably WRONG? Sprott was front and center in all that silver-hyping garbage, and yet here he is in this article saying the exact opposite - 2013 was totally uneventful regarding physical silver demand. What happened to the physical supply of silver being so dire that Sprott could barely find any for PSLV?

Last I heard, physical silver inventories were going to destroy the modern banking system (at the very least, JPM) and all the Coin Shop Rambos were preparing for world domination. Now Sprott is saying that physical silver demand was a big nothing for 2013.....What the hell happened? What about the shortage?? I thought if I bought some silver coins I'd destroy JPM? WTF? Did everyone finally realize that the "Farting Silver Bears" was just a YouTube cartoon? What happened to all the silver pumpers who based their retirement savings on those Farting Bears?

I know this post sounds a little antagonistic, but all the shameful silver pumpers need to be called out for their lunacy and bullshit, and there's no better place to do it than an article about Sprott - the godfather of the silver pumping mafia.  How many bagholders did the "Crash JPM, Buy Silver" create?  How many good, innocent people got hooked in the mouth with all sorts of silver-pumping propaganda and lost half their wealth in the past two years while nearly every asset soared?  You could have bought Herbalife.... Fuck, you could have bought the shittiest stocks on Earth and made a fortune, but instead all the shameful silver pumpers puked up a bunch of hyperbolic nonsense and REAL people lost significant wealth.  You could have made NO investments in anything and asked your boss for a 40% deduct in your salary and you would have been better off than buying silver around the time of Sprott's PSLV IPO.  

And what's even MORE ridiculous about all the goofball silver pumpers is that they were so unbelievably intolerant of anyone questioning them.  Precious metals investing was/is a cult, and unless you pledge allegiance to all the carnival barking bullshit, you're ridiculed, mocked and basically told to fuck off.  What a joke...  I don't think I've ever seen such investment lunacy in all my life.  

So now it's 2014 and Sprott has done a complete reversal - apparently demand for physical silver is now flat... no dire shortages anymore. How convenient.... it's almost like he doesn't have a new IPO anchored to physical silver to pump anymore.  Is he trying to rebuild credibility since he got fired from his own fund?  Are you guys giving him and all the other silver pumpers a mulligan on all the hornswoggling carnival barking that ultimately screwed everyone? Don't you guys see the hypocrisy in this new article by Sprott?  

Sat, 01/18/2014 - 03:24 | 4343457 SRSrocco
Sat, 01/18/2014 - 04:47 | 4343529 Rock On Roger
Rock On Roger's picture

I read that earlier this evening.

Could it be the 37 tonnes of 22 carat gold sent to Germany?

 

Stack On

Sat, 01/18/2014 - 05:14 | 4343547 Squid-puppets a...
Squid-puppets a-go-go's picture

and this disproves fonzanoon's assertion that the central banks can manipulate it forever: they can, but only when in unison - but germany aint playing no more

and one by one other CB's will 'sit on an available chair'.  China has said to the world it is about to sit down. Even if the game appears in slo mo, the music stopped when the US said it wont hand over germany's gold until 2020.

Sat, 01/18/2014 - 08:10 | 4343648 GetZeeGold
GetZeeGold's picture

 

 

I'm sure Germany will be pleased to hear that.....

Sat, 01/18/2014 - 10:03 | 4343736 Keyser
Keyser's picture

The real question is what retribution will be heaped upon Deutsche Bank and Bafin for allowing the truth to come out. 

Sat, 01/18/2014 - 10:22 | 4343765 GetZeeGold
GetZeeGold's picture

 

 

The way I see it the only thing for Deutsche Bank to do at this point is to go on offense.....those guys have some pretty good experience at blitzkriegs.

Sat, 01/18/2014 - 11:18 | 4343829 AL_SWEARENGEN
AL_SWEARENGEN's picture

I say 2014 will be different.  Watch for Germany to get fed up with the Fed's non delivery of "their" Gold.  Watch for Germany to lose patience with the crumbling Euro block in general.  Germany being one of the last manufacturing powerhouses in Europe may well lift it's skirt to the BRIC's.  Russia and China realizing the potential of Germany joining the BRIC club may well be enough to with stiff-pricks court Germany with an offer so desirable to Germany (Gold) that Deutschland might say YES YES and yield the virtue of the country on the spot.  Sound far fetched?  We'll see.

Sat, 01/18/2014 - 13:36 | 4344073 boogerbently
boogerbently's picture

At SOME point the LAW of supply/demand has to kick in.

There is a high demand, and a low supply.

Prices WILL rise.

Sat, 01/18/2014 - 17:38 | 4343835 funthea
funthea's picture

Nothing to see here.

Sat, 01/18/2014 - 11:24 | 4343836 funthea
funthea's picture

double post

Sat, 01/18/2014 - 03:53 | 4343482 debtor of last ...
debtor of last resort's picture

CAM, you can follow the manipulation until the crash, or you can stack real money. When markets turn and paper starts to burn, it's too late to get you some real money.

Sat, 01/18/2014 - 10:33 | 4343771 GetZeeGold
GetZeeGold's picture

 

 

Kinda like Harvey Weinstein saying last week had he been in Nazi Germany during the Holocaust he would have found a gun.......yeah......don't think so Harvey.

Sat, 01/18/2014 - 15:44 | 4344337 Winston Churchill
Winston Churchill's picture

Supply is limited.

I cleared out Kitco of gold sovereigns this morning.

Had to keep changing orders to complete my purchase  as I emptied stocks on items.

Finally burned some dry powder.The time seemed right.

Sat, 01/18/2014 - 06:22 | 4343585 SilverSavant
SilverSavant's picture

Crawl back in your cave and stay there please.

Sat, 01/18/2014 - 06:37 | 4343594 greatbeard
greatbeard's picture

Nice rant dude.  Other than the occasional delving into hyperbole, pretty spot on.  Hearing Sprott schlepping his snake oil makes me want to cash out and run.  If there were anywhere to run, that I felt safe in, I'd go.  But there's not, so I'll just ignore it all and continue to enjoy the hobby farm life.

Sat, 01/18/2014 - 08:25 | 4343651 GetZeeGold
GetZeeGold's picture

 

 

Stickin a shovel in the ground doesn't make you a farmer city slicker. I should know.....I grew up on a farm.

 

If you want to do some real farming....I know a place I can take you....if you survive half the day....I'll feed you lunch.

Sat, 01/18/2014 - 08:42 | 4343671 greatbeard
greatbeard's picture

>> Stickin a shovel in the ground doesn't make you a farmer

No more than running your mouth makes you an authority, shit stick.

Sat, 01/18/2014 - 09:13 | 4343692 GetZeeGold
GetZeeGold's picture

 

 

That's a dollar in the swear jar for you Amigo.

 

It's early morning, what are even doing here......don't your have chores to do? Elsie ain't gonna milk herself.

Sat, 01/18/2014 - 10:54 | 4343799 new game
new game's picture

so if i got a forty and wasn't a farmer i'm still a city slicker? hey, i met you at the corner store and as i recall you were not the friendly type and rejected me cause i wasn't local and like you.  i left feeling sorry for you. i met another person and he was helpfull and offered to show me a better way. we became friends...

Sat, 01/18/2014 - 10:08 | 4343739 whatthecurtains
whatthecurtains's picture

 

>>Stickin a shovel in the ground doesn't make you a farmer city slicker.

Yeah it might make you a grave robber.

Sat, 01/18/2014 - 11:23 | 4343833 HamFistedIdiot
HamFistedIdiot's picture

The case against the Fed is part political, part economic, and part moral. I went long silver in Nov. 2008 after Congress gave a blank check to shareholders of the Fed; but as it is said, markets can remain irrational longer than participants can remain solvent. It depresses me to hear that silver demand was flat at valuation levels 50% of what some of my family members bought the metal at. How long before silver reaches a new nominal high? 10 years? How long can the ranks of the FSA swell till 80% of Americans are on the dole? Is any of this sustainable let alone moral? I don't want to benefit from money printing, so I am out of stocks. But betting against the house/the central planners is a dangerous game. I know there are all sorts of Black Swans flitting about. But with the shadow state's tens of trillions of dollars, I find it hard to believe that the controllers don't have a plan for gold's being reset to $10K and the West having none. I don't see the Rothschilds playing this game to lose. They own the large mining companies like Barrick. Will us plebian bitter clingers and stackers do okay? I am not sure, but I think so, and I know it's the right thing to do.

Sat, 01/18/2014 - 07:13 | 4343610 Crash N. Burn
Crash N. Burn's picture

"So now it's 2014 and Sprott has done a complete reversal - apparently demand for physical silver is now flat... no dire shortages anymore."

 

 Don't believe a word of it:

"Price-fixing by the One Bank in the silver market during the 1980’s and 90’s (and the 600-year low in the real-dollar price of silver which resulted) led to a 90% collapse in silver inventories from 1990 – 2005 alone. What happened after 2005, as this collapse seemingly began to reverse?

This was when the One Bank instructed its minions to begin falsifying the numbers on global silver inventories. This was accomplished in an absurdly clumsy manner: through adding silver sales receipts into total inventories. Specifically, every ounce of “silver” purchased in the bankers’ paper-called-silver market was added into total inventories. This has produced the totally farcical scenario in this quasi-official “record-keeping” where the more (paper) silver which is purchased, the larger the phony, official inventory numbers grow.

In short; we have absolutely no idea whether there are only two days of supply remaining for global demand for silver or two years. We only know that by 2005 the One Bank was already so alarmed by the complete collapse in global silver inventories that it began falsifying the reporting of this data – and this inventory-fraud persists to this day."

Silver Bells

 

 

Sat, 01/18/2014 - 10:12 | 4343747 unrulian
unrulian's picture

@CognacAndMencken ...

+1....i'm a bag holder like probably a lot of people here, hindsight is 20/20 and i feel a bit sick what i have lost holding the bag. i do however feel less sick that is hasn't vanished into thin air like some paper investments, it's still in that lake. I think in the end the farting bears will get some redemption but right now they look foolish (i never bought into the crash JPM BS, its about like trying to crash PFE by running for the cure)

Sat, 01/18/2014 - 11:03 | 4343815 Gordon Freeman
Gordon Freeman's picture

CAM:  Thanks for the excellent summary--but why are you apologizing for being "antagonistic"?  You, and everyone else, should be homicidally angry at the PM shills like Eric Sprott and his enablers.  They are the lowest of the low, preying on the most naive and paranoid in the investing public, leading them around by the nose, and picking their pockets.

Sat, 01/18/2014 - 12:34 | 4343926 Kirk2NCC1701
Kirk2NCC1701's picture

1. There's a reason Sprott is a billionaire: he knows how to position himself and leverage well, and he knows how to front run. Don't know if does a "GS": Pump & Dump and Short while telling his clients to go Long. But it wouldn't surprise me, as he wouldn't be the first and he won't be the last.

2. "Figures lie and liars do a lot of figuring." is an old saying

3. "A gold mine is a hole in the ground, with a liar on top." It is said. Case in point: Bre-X.

4. I share your sentiment about the fanaticism and goon-like personal attacks by a subset of extremist PM players.  Judging by the Up arrows, many others agree.

I'd go so far as to say that extremists of ANY kind are beyond rational... When such people stop being reasonable (able to reason), they become dangerous to themselves and probably to others.  The worst ones are the religious fanatics, who operate at almost a purely primal level and go back many, many centuries.  They are present in all three monotheistic religions, and all have recent examples of their dangers.

Sat, 01/18/2014 - 12:46 | 4343977 CoonT
CoonT's picture

+1 Exactly! I'll never forgive Sprott for that shameless silver pump, not so long ago. DoChen is right, in that he is "one of the good ones" but the fact is that he's been playing the game, just like all the rest of the pumpers.

Obie says: "Don't sell a nigga dreams" and "No hos in tha spot where tha dough grow" Sprott should listen to Obie..

Sat, 01/18/2014 - 17:29 | 4344549 fockewulf190
fockewulf190's picture

@Cognac

Remember this?

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/bern...

Silver was artificially manipulated and crushed by TPTB because it was becoming a huge problem.  Demand for physical silver, even now, continues to be very high, but, as you well know,  the price is determined in the paper markets.  How many times have we seen massive amounts of paper silver equalling to a third, half, or even an entire years supply of the world´s silver production traded in a single day? How about the senseless smashdowns that happen in the dead of night, often with thousands of contracts being traded within seconds at most, and profit means nothing?   Not to mention, NO intervention by the CFTC or anyone else, EVER, besides the occasional lip service by the likes of Bart Chilton?

I understand your frustration, but I feel your anger towards Sprott is misdirected.  He for one is having to fight the biggest manipulation campaign ever wrought, yet stocks have been POMOéd tirelessly with untold billions in out of thin air created dollars.    If anything, you should embrace the fire sale in hard assets, because one day, this bitch of a market is going to blow, and fiat currencies the world over will vaporize.

Sat, 01/18/2014 - 19:15 | 4344758 Papasmurf
Papasmurf's picture

I haven't listened to anything Sprott has said since he went around on a media blitz in early 2011 pumping his PSLV with all sorts of hyperbolic fear-mongering nonsense, while quietly dumping his shares at the same time.

Exactly!  I take his pumping with a grain of salt after that.

Sat, 01/18/2014 - 23:12 | 4345202 moonshadow
moonshadow's picture

@cognac- help me out here-you said sprott got fired by his fund? i searched for that info and came up with nothing. could you give me a bit more info? or a link to info about his firing?

Sun, 01/19/2014 - 01:12 | 4345349 jonjon831983
jonjon831983's picture

I think what put off a lot of people was when he dumped a load of PSLV pretty much when silver was starting to get hammered.

 

He reasoned that it was so he could buy mining shares or whatever which is probably valid, but the optics were pretty bad.

Sat, 01/18/2014 - 00:18 | 4343273 Tall Tom
Tall Tom's picture

Why so glum, chum? When this blows up life becomes Hell on Earth.

 

Every financial market will unravel as a result of the continual, and multiple, rehypothecation of Physical Gold because when it comes right down to it Gold is at the apex of Exter's Inverted Pyramid.

 

THERE WILL BE NO TRUST WHATSOEVER.

 

What is the claims against deliverable Gold on Comex right now? Hmmmm.... I read this morning here on ZH that it was at a historic high of 117 to 1.

 

So if it blows up TWO YEARS FROM NOW, rather than right now, it means that you have two more years to prepare for Life in Hell.

 

Think of it as a REPRIEVE from the Execution which the Nation of Massive Financial Swindle and Fraud, yes, the United States, so rightfully deserves.

 

If you have Gold then you are not broken...not yet at least. I am enjoying the feel of one on my One Ounce Maple Leafs as I write.

 

Just owning one coin means that I own more than my "fair share" if all of the Gold in the World were evenly distributed.

 

You are whining because you are richer than most of the inhabitants on this Planet???

 

Shit!!! Crocodile Tears!!!

Sat, 01/18/2014 - 05:19 | 4343552 Squid-puppets a...
Squid-puppets a-go-go's picture

i'm doing something similar. I nestle a gold coin between my foreskin and helmet, and i purport its unparallelled health benefits.

I tried the same with a bitcoin but got a nasty shock to me oldfeller

Sat, 01/18/2014 - 08:17 | 4343655 new game
new game's picture

gold in one hand cock in the other-getting the picture...

Sat, 01/18/2014 - 14:47 | 4344228 nightshiftsucks
nightshiftsucks's picture

Just don't get carried away and use the gold as a suppository,that would give a new meaning to "burried nugget".

Sat, 01/18/2014 - 13:15 | 4344033 Tall Tom
Tall Tom's picture

Well I am not shocked...

Sat, 01/18/2014 - 06:14 | 4343580 samcontrol
samcontrol's picture

@fonz.
super bowl prediction.

seahawks defense retire broncos quaterback.

Sat, 01/18/2014 - 11:19 | 4343832 RobD
RobD's picture

Point of order! SeaChickins have to get past the niners first but if they do I don't think they can win in NJ, terrible road team that they are.

Sat, 01/18/2014 - 13:16 | 4344037 Tall Tom
Tall Tom's picture

Unless they have Crucifixtions of  Banksters and Politicians at Halftime then why bother watching?

Sat, 01/18/2014 - 14:58 | 4344251 logicalman
logicalman's picture

Take a leaf from the Romans.....

Banksters & Lions.

The queue for tickets would be huge!

Sod throwing a ball about and calling it 'foot'ball. Never understood that.

Sat, 01/18/2014 - 08:14 | 4343617 new game
new game's picture

on principle, i ignore billionairs with a book to sell. fuck sproot. next if anyone here thinks the world dominated by central banks has changed - place your hopium vote for gold and take a ride on the manipulation express. after carefull and long anxiety of placing my money into the gold space-phyz, i became aware that it is a joke and the rule of law and markets just aint gonna happen. no martre here. all i here is whiners, wish think and see myself falling into the trap of being just another whiner.

fuck it. better plays. now i look listen and laugh as i am not one of the gold buggers mad at the world.

investing is usable physical assets with utility-plain simple and much better use of time energy and the return is off the charts in comparison.

sorry, but it aint where its at even if it goes to da moon.

also if it becomes a double in value, we got much bigger problems and your gold aint worth shit when the zombies or goverment come looking for anything of value, which probably won't happen either.

no mater how you figure there is much better place to hide your wealth in plain view.

tractors, real estate, land, tools, copper, aluminum, junk cars, bullets, collectables(road show), art ect. on and on. all a better utility that is a way better reason to wake up and live another day.

fight club open for business today down arrow are opinions i do respect-remember to post a logical response and don't shoot the mesanger. keep the gloves on as we are still trying to have some fun-right?

Sat, 01/18/2014 - 09:38 | 4343712 ArmyofOne
ArmyofOne's picture

"tractors, real estate, land, tools, copper, aluminum, junk cars, bullets, collectables(road show), art ect. on and on. all a better utility that is a way better reason to wake up and live another day."

 

That's a lot of stuff hanging around waiting for a fire to wipe them out or get looted.  I'll think I just stay with what has been a store of wealth for 5000 years.  Canning jars loaded and dug deep in the ground. 

Sat, 01/18/2014 - 10:48 | 4343791 new game
new game's picture

i respect that! just a list of stuff i can get much more utility out of while i exist. many more items could be added and i am not a junk collector, unless it can be USED AT greater value in the future...

i keep a few coins though, just 90 percent less...

they are cool, i must say.

Sat, 01/18/2014 - 11:40 | 4343854 greatbeard
greatbeard's picture

>> has been a store of wealth for 5000 years. 

Has been a store of value for 4,998 years.  Since it's been in the Fed's cross hairs it's been a disaster and anything but a store of value.  Nobody, well some, but none of us, knows what the future holds, but fighting the Fed is still a losing battle, as the gold chart clearly shows.

Sat, 01/18/2014 - 17:22 | 4344538 ArrestBobRubin
ArrestBobRubin's picture

In my experience, the best approach is to remain open-minded about how best to make "money" (actually just fiat currency) while not losing sight of reality and fundamentals. Unless you're saying that anything has really been fixed (or even substantially addressed) since 08/09, the role of PM as the best form of wealth insurance and diversity is very much alive and well. And as things have actually gotten much, much worse, its role is more important than ever. For what one pays for that insurance right now, it's a screaming bargain.

PM's have been dirtied up in the marketplace by the UST/Fed/Wall Street and a Stalinistic "news media" at the same time they've snookered the dumbed down masses with one paper scam after another. Many so-called investors are "all in" equities right now as if they'd never been burned by the dot bomb, tech wreck, housing slide, or a dozen other scams over the past 25 years. It's hard to fathom this lack of memory- - what, do people really think "it's different this time" with the likes of Obama and Bernanke / Yellen / Fisher at the helm? Yeesh. I can only imagine what's in our food, water and air anymore.

In reality, nothing has changed. It's just that the Man Behind the Curtain has been working the levers furiously to maintain an illusion of recovery and prosperity. Over the past 2 years, those who can see through it have let the Enemy (the Fed & Wall St.) subsidize the slow but steady growth of their PM stacks.  They've made lots of easy fiat in a steroid-fueled stock market bubble and then transformed some of this unbacked "sucker paper" into some of that 4,998 year old real money stuff.

You take what the Defense gives you and let them help you win the game. Welcome to the NFL.

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