This page has been archived and commenting is disabled.
Eric Sprott: Global Gold Demand Is Overwhelming Supply
Submitted by Adam Taggart via Peak Prosperity,
Precious metals have had an especially tough go of it over the past month. Both gold and silver are back in price territory last seen in 2010.
Eric Sprott returns to the program to discuss the facts as we know them in this market, and what's likely to happen from here. Specifically, he explains the tremendous imbalance currently seen between global supply and demand for precious metals. In his view, prices will have to correct upwards -- prodigiously -- to bring the two back in alignment:
We see almost 60 tons a week being delivered on the Shanghai Gold Exchange. Well, you start annualizing 60 tons a week you’re talking 3,000 tons a year now. We saw 94 tons of gold go into India in September. We saw the Russian Central Bank buy 37 tons of gold in September. I mean I could come up with numbers that might suggest that we’ve got 400 tons a week of demand. And we only got 230 tons a week of mine supply. And I’ve only gotten to three data points. I haven’t even gone to the rest of the world.
We’ve now created a situation unfortunately in the market where between high frequency trading and algorithms and interference by the planers they can make things happen that looks like everything is OK. And it’s the "OK" part where I think we can really relate to gold not being allowed to go up. Because that's the canary in the coal mine. If gold was above $2,000 we’d all be wondering: What the hell is going on here? And so they haven’t allowed it to happen.
But by suppressing the price -- and one of the great things about a price of $1,100/oz is that you can buy a lot of gold at $1,100 versus $1,900 -- you can buy almost 50%-60% more gold than you could three years ago with the same amount of money. And you can buy 3x the silver. With the same amount of money!
So, they’re just making the market so small that sooner or later somebody is going to figure it out. And take it on. It’s just such a small market. Imagine if the whole inventory is only $15 billion. What the hell is $15 billion in this day and age? It’s nothing. And a lot of that inventory is already held by people like us and like-minded people where it’s not coming back on the market. So, I’m kind of very hopeful that things are going to work out for us. I know it’s just been a depressing time, in particularly for people like myself and our customers who are in the mining stocks -- the miners have just been eviscerated here. But, by the same token if the market comes back to its sense and gold and silver move up from here, there’s going to be a lot of money made in precious metals equities.
I think a true price recovery has got to come from the physical market first. When the mint says they don’t have any more silver coins, that's a good sign there’s more demand than supply. Maybe folks start figuring it out then.
To me, the biggest win will be if there is a delivery failure. If somebody says we were promised some gold we didn’t get it. And that could happen -- I mean we just can’t have China continue to buy 60 tons a week. That's impossible.
Click the play button below to listen to Chris' interview with Eric Sprott (38m:46s):
»
- 28771 reads
- Printer-friendly version
- Send to friend
- advertisements -
So why is price down when demand > Supply?
I get it, there is very high demand, but my coin shop still has most items I typically buy, in both gold and silver, every time I go in there. Premiums have gone up a decent bit compared to when silver was 20/ounce and gold was in the 13's, but it's all still there and for sale. I'll believe there is some kind of imminent supply crunch when ican no longer find it 3 miles from my house.
Yeah, well we'll see tomorrow.
The Central Bank of DoChenRollingBearing is in the market for physical. I do not anticipate there being supply problems. If there are, well time becomes very short to act...
EDIT:
Yes, Greenskeeper_Carl, I will see what preimum I have to pay as well. Last time it was $90 for an Eagle, tomorrow may very well be less.
The market will keep going up until the power goes out...
^.^
If you don't understand why the price of gold and silver is going down then you really need to get out of this market because you are about to be served on a plate with a nice reduction sauce
silver price is having a seizure at the moment
Remember how well gold did last crisis? But ya demand is so high -100 'cause paper gold or 'crash jpm or demand lowers prices, or something you have to hold it
I am seeing a shade over $60 for eagles online.
Your local supply crunch happens when some Indian or Muslim in your city walks into your LCS and lays out $100k cash and cleans out the shop. It happened a while back where I live. It took the LCS a few weeks to recover. Now just imagine several people in your city want to do that and voila, nothing available for months. They replenish their stocks from locals selling a couple of coins at a time.
How many Toz in a Tonne? You've got a long way to go, there.
So why is price down when Demand > Supply?
a) Demand channelled into OTC unallocated Supply - Fractional Reserve
b) Supply temporarily increased via smoothing operations - BoE/BIS
c) Unrecorded physical Supply hitting market
d) Naked shorting of futures without realistic position limits
e) G10 central bank physical pool for fire-fighting operations
f) Manipulation of GOFO and gold lease rates by LBMA
g) Maintenance of gold swaps and rolling over central bank gold loans
All of the above?
"The extent of financial corruption involving collusion between the mega-banks and the financial authorities is unfathomable. The Western financial system is a house of cards resting on corruption.
The house of cards has stood longer than I thought possible. Can it stand forever or are there so many rotted joints that some simultaneous collection of failures overwhelms the manipulation and brings on a massive crash? Time will tell."
Paul Craig Roberts
The latter. You wouldn't guess it watching CNN Fox and CNBC, but every day the financial players, including not just big and small investors and the central bankers and ministers of finance around the world, are getting closer to Panic. When it comes, there'll be a mass race for the exits on a scale never before seen.
And I'll be right here in my ringside seat on ZH watching!
It will be a bad time for the world, for almost everyone I know. Not all of us will survive, and if I could stop it I would.
But I'll be laughing my ass off anyway!
After putting yer ass back on, it will be time to buckle up and spend all those soon-to-be-worthless FRNs/Euroz on personal supplies and tradeable items. Be sure to get water filters/pills too!
CdO
The reason is that the price of gold has NOTHING to do with metal.
Gold is priced on the Forex market. It will continue to be priced there until something breaks. Buy gold while you are able. Who knows why prices are down. Maybe someone is selling XAU/USD. That would result in low gold high dollar.
The Forex market dwarfs the stock and bond markets. Big boys use the Forex markets to do big things. Big boys who can print currency. Do you really thing the buying and selling of a few coins and bars matter?
Indeed, that's where the BIG trading money is, in FOREX.
lvp is saying put on your Big Boy Pants, and buy. Nobody knows how long gold will be available at these apparently very low prices. If you do not own any gold, you are missing out on the best insurance in town re global market calamity.
And physical gold is very likely to be worth much more when its time comes...
Is there really anything wrong with gold being priced on the forex? I ask that in contrast to paper representing gold setting the price for gold via the forex.
Because fractional reserve paper gold:physical gold is easily 100:1. The decreasing price of "gold" (as long as physical is still being delivered) represents either 1.) selling of paper gold 2.) creation of paper gold. As more paper gold is created and as more holders of paper gold elect to sell, the price of gold will continue to decrease until the market breaks and physical cannot be delivered. Only then will we know the actual price of physical.....
At least 15:1 Undervalued.
But we will see 2.5:1 increase while simultaneously seeing a 5-7:1 decrease in all assets.
Gold is the <only> escape vehicle for the coming collapse.
What about silver?
double post
This is a avatar free for all..? I gotta give the two girls an up arrow.. :)
Well... the world seems to change every 5 years, I'll reserve judgment and hold till 2020,
If you wait till then you will get burned each time
In the financial world you can take a peace of paper and write "gold" on it.
The vast majority of gold trades are with these paper gold contracts.
1% Physical + 99% Naked Shorted Contracts = Futures Market.
Or stated in another way:
$14.3 Trillion in Money (Fed says) / 7400 tons 'reserves' = $56000 / ounce.
Current Price $1200
$56000 / $1200 = 50:1
THE ONLY THING that will escape the coming USD dollar collapse IS GOLD. All US dollar denominted assets will loose 80% of their value in the coming collapse. Gold in relation will rise 250%.
In otherwords physical will increase in value against a falling dollar and the currency wars of the falling yen I predict about 15-20X in 24 months..
Why will gold only rise 2.5x when you have it at 50:1 now? Add in the 100:1 ETF ratio and should it not be more than 50x? Then if you are indexing against falling asset prices, even greater? But then you say 15-20x in 24 months. Do you mean this is the initial rise or something else?
That explains the skyrocketing price.
China and Russia buying alll the Gold! What are they plotting?
Rumors are they're in cahoots on a planned bout of rogue governmental sanity.
Survival?
Econ 101 taught me what happens next.
Quite the fexible throat there, pardner!
oh , a tooth'd cunt.
Guys we need to keep these avatars a little bit cleaner. Tyler should really disallow sex acts and nudity on here.
Even though there is some wisdom here, I cannot browse this site at work. This cuts down my viewship. Not Judging, just saying
Uh.. we see the 'money shot?'
Low Supply + High Demand = Market Price Drop
Think of it as Common Core Math
As Eric continues to dump his Sprott Physical Gold Holdings:
https://canadianinsider.com/sites/all/modules/latestfilings/diag3.gif); background-color: #eeeeee; background-repeat: repeat;" colspan="3">As of 11:59pm ET November 15th, 2014 https://canadianinsider.com/sites/all/modules/latestfilings/diag3.gif); background-color: #eeeeee; background-repeat: repeat;" width="60">FilingDate https://canadianinsider.com/sites/all/modules/latestfilings/bluediag1.gi...); background-color: #eeeeee; background-repeat: repeat;" width="65">Transaction
Date https://canadianinsider.com/sites/all/modules/latestfilings/diag3.gif); background-color: #eeeeee; background-repeat: repeat;" width="135">Insider Name https://canadianinsider.com/sites/all/modules/latestfilings/diag3.gif); background-color: #eeeeee; background-repeat: repeat;" width="60">Ownership
Type https://canadianinsider.com/sites/all/modules/latestfilings/diag3.gif); background-color: #eeeeee; background-repeat: repeat;" width="150">Securities https://canadianinsider.com/sites/all/modules/latestfilings/diag3.gif); background-color: #eeeeee; background-repeat: repeat;" width="*">Nature of transaction https://canadianinsider.com/sites/all/modules/latestfilings/diag3.gif); background-color: #eeeeee; background-repeat: repeat;" width="65"># or value acquired or disposed of https://canadianinsider.com/sites/all/modules/latestfilings/diag3.gif); background-color: #eeeeee; background-repeat: repeat;" width="50">Price Nov 10/14 Nov 6/14 Sprott, Eric S. Direct Ownership Units 10 - Disposition in the public market -110,000 $9.44 Oct 31/14 Oct 31/14 Sprott, Eric S. Direct Ownership Units 10 - Disposition in the public market -210,000 $9.62
USD Oct 3/14 Oct 2/14 Sprott, Eric S. Direct Ownership Units 10 - Disposition in the public market -40,000 $10.00
USD Oct 2/14 Sep 30/14 Sprott, Eric S. Direct Ownership Units 10 - Disposition in the public market -15,000 $9.96
USD Sign up for an account or login above to see all SEDI filings within the past 6 months.
Listen.
I had a premonition that Chris started to eat his "FREE" range chickens. So I stole his puppy "JUST IN CASE".
Listen!
Green for absolute incoherence!
Listen.
Yea sorry DCRB. Ok.
So the author had a sweet gig, big house and all that jazz then one day up and went into "PREPPER" mode complete with the free range chickens. Sad.
On to the puppy reference. I'm the rally monkey. Ma ma ma monkey. I steal from the boo boo bears. They short, I steal. I get so greedy I even steal their little kids puppies.
http://postimg.org/image/ydrbig9zx
So then you ate puppy curry somosas?
After Harper and Sprott, we are tired of Canadian "Exceptionalism".
We don't need Prime Time "Heroes". We need more Main Street heroes, doing the right thing - day after day. True and enduring change comes from the bottom up, not top down.
Physical has begun to decouple from paper. TPTB CANNOT let gold rise. Period. We all know the FIAT price of gold is rigged beyong imagination. Two things can happen. The FIAT value of gold will shoot the moon on a massive currency crisis event.. but FIAT will be worth squat. Gold value, priced in FIAT will go to zero.. at that point the system has fully shat the bed anyway. Gold is a store of wealth away from the system. I don't understand why we keep debating the metal with regard to FIAT. They are practically two different system entities now.
When I want to know what PMs are worth I consider ebay better than some ridiculous MSM spot price. Got a tarnished 1987 silver eagle? Does anyone really believe that fuckers worth $16-$20? Ebay will show exactly what some bidding war is paying for that right now.
Except ebay will fleece the seller
And that has nothing to do with the sales price. The buyer doesn't care about the seller's expenses. Only shipping (if any) is a valid consideration for the buyer. When there are only a handful of pages of ASEs available at eBay will the actuality of the problem become apparent to the casual buyer... and the prices go up.
Gold value, priced in FIAT will go up 250%
- there fixed it for yah..
My guess is that the Rothschilds have enough gold to control the price for as long as necessary. When they decide to crash the economy, they will let the price rise. In the meantime, don't hold your breath.
"We see almost 60 tons a week being delivered on the Shanghai Gold Exchange."
How come everyone assumes China, Russia and other countries are buying all this physical gold? Is there really any real way to prove that this is the case? Maybe everyone is lying.
There isn't one good reason why gold and silver should be trading at these ridiculously absurd levels if China is buying 60 tons a week. The math and logic simply doesn't work.
There isn't any reason if everyone's allocated and unallocated accounts (including those of other nations) are being respected by the U.S. and U.K.
There isn't one good reason knowing what we know... which likely means there's an important fact we don't know that at play here.
My guess is there is either some state-level agreement between western banks to let this happen (for a multitude of reasons) or that China can instantly blow up the metals markets and uses this power (and the complicity of the bankers) to hold the price down while it scoops up physical.
In either case... when things don't make sense, either something is broken in an insane way, or you don't have the whole picture.
I suspect that you've got it seek, (I would guess we do not see much of the picture among your two alternatives). Gold has always been a very murky subject at the high level. As more and more props get kicked out from supporting the $IMFS, we should not be surprised to see more games played by TPTB, perhaps the TBTJ (Corzine) as well.
Physical gold defends against almost all of these kinds of predators.
* * *
My other comment (thought really) is who would be able to "do the reset"? The USA or China for sure. How about Switzerland? Could they buy enough to bring about a reset into the many thousands...? Probably not, but a line of thought worth thinking perhaps.
No doubt Germany could do it (and was probably headed that way before that crisis got averted), and the UK.
We know that Venezuela successfully repatriated their gold (160T), so that wasn't enough, but Germany changes its mind (300T from the US).
I've read that if the Swiss vote goes through, they'll need to double their reserves -- meaning buy something like 1,500 tonnes, five times what the Germans wanted back from the Fed. (If it was phyz, that is.) Knowing the numbers, it's safe to say they simply can't do it, so either gold blows up or they stuff the same bullshit paper into Swiss vaults and count it as real gold.
Sprott is right, this market is tiny and demand far exceeds supply. Every single one of those state-level transactions is multiples of the total market inventory. The fact that gold hasn't gone stratospheric is simply proof of the manipulation.
.
Of course I agree with you, and don't have any doubt the manipulation efforts are the reason for the smashdown the last three years.
I also don't know If China is buying 60 tons of gold a week, but I don't think Sprott knows anymore than we do either.
Just how much $ value in gold do you think there is available for sale? QE could have bought it all many times over. Why would someone not buy it all? A recent article here told us the Chinese are expanding their network in order to acquire more gold faster, implying that they cannot currently buy all they want with the access to the market they have now. This implies they are trying to buy all the gold but are going to have to start fracking the market to get the harder to obtain stuff as the low hanging fruit has already been picked.
Who knows? I do know I love me a mixed metaphor salad from time to occasion.
Futures and Phys is like Margarine and Butter.
One is a cheap chemically produced color dyed imitation, the other comes from a cows tit.
This is the biggest play in 20 years. Physical <will> decouple from the Futures BS market very very soon. Physical is undervalued 250%. In comparison I expect all USD denominated assets to fall 80% when the in near future (2015) when it collapses.
In otherwords if you buy physical now it's buying power will increase 15x
There was a time I would put some stock in what Eric Sprott had to say...not now.
A year ago he made the famous statement about silver "It's all gone". Obviously premature if not just plain wrong.
Sprott, Sinclair, Hatheway, Leeb, ....name them all...all wrong.
Something is going on in the world PM markets, but these guys obvioulsy know a lot less than we thought they did back in 2011. What once seemed like educated prognostication is now nothing more than guesses. How many of these pundits said in January that we would see "new highs" by the end of the year. Well, Santa, there ain't too many more shopping days 'til Christmas.
I'd like to think they're not "bad" guys, but they haven't done anything "good" for quite some time.
CPN, I cut all these guys slack because I suspect they just didn't appreciate how infinitely corrupt the bullion banks and TPTB are. An honest guy like Sprott has a hard time imagining the mentality of these guys who would cheat anyone out of anything if it got them another year, month, week or day more on top of the heap.
It's a 'titanic struggle' for 'all the marbles'...cliches aside, would you expect anything less when the fate of the world's 'Fiat Funny-Money' scheme
is on the line?...ALL CURRENCIES NOW UNBACKED PAPER...WORLD-WIDE
Sprott's call was for 2100 gold by Dec. I hope he bought out of the money calls.
Yeah well probably being an honest guy yourself you assume large banks and .gov are?. Honest people have a hard time predicting the abilities of thieves to rob sovereign countries, working businesses and regular citizens of real physical wealth.
I think any investment will have good times and bad times. It is simply essential for the bankers that people get frightened out of gold, because if we all just bought gold, the bankers would not be needed as a store of wealth. Also the stock market would not be fed, if people feared their savings and just bought gold.
However, the fact that all and sundry are racing to devalue their fiat money, should tell you what is going on. I am absolutely certain that they will not be able to suppress gold for all times, and sooner or later people will have to wake up and ask themselves what has value and is not controllable by the banksters. That is certainly not fiat currency but gold, silver, diamonds etc.
The price of gold can turn on a dime, and most likely will. What has taken three years to loose, can be gained in three weeks, if not three days, when things change.
At that stage, good luck with redeeming your bonds or selling your shares! The train will have left the station before you might be able to move.
This has to happen and it will, it is just a matter of when.
Then suddenly the fool is the hero, and the heroes are zeroes, and all wonder why we couldn't see it before. The usual old story.
sometimes I think of it as a 'tug-o-war'.......back and forth and just when you think one side is going to win.....
The three pillars of fiat money are:
1-tax payments must be made in reserve notes
2-borrowing brings the reserve note into existence
3-traditional alternatives (PMs) must prove to be a bad investment of reserve notes
Paper price fixing will eventually cause a failure to physically deliver and that's when you sure as hell want to be holding. A few volatility plays left before it's time to buy the calls...
Seriously Alberich?
You see the system failing to deliver physical but staying intact enough to make your calls good?
hen things go bad only physical in your possession will be safe. I don't want to be trusting anyone when that day comes.
^--- lvp is totally correct. I do not want paper calls. I want the gold..., defended by my lead.
With stocks plunging and gold and silver still consolidating recent gains, today King World News interviewed billionaire Eric Sprott, Chairman of the $10 billion strong Sprott Asset Management to get his take on the action. When asked about gold Sprott replied, “I think it’s explosive. As you know James Sinclair said, ‘When it goes through $1,764 it’s going to $12,000,’ and I for one am not ruling out that kind of development here. It could be very explosive as more and more people worry about one, fiat currencies, two, sovereign debt and three, bank deposits. It would take very little to spill into gold to make a dramatic difference in where the price will be.”... September 9, 2011
Too many bought at $1700, thanks to snakeoil salesmen like Sprott.
FUCK OFF SPROTT!
Kwerk
...its'a Marathon...not s Sprint
Do you usually leave a movie at intermission or do you stay and see the ending?
Nothing makes sense anymore.
Alcohol helps.
Not with the sense of things, but with the ability to ignore.
https://www.youtube.com/watch?v=Od4nSd9AVH8
https://www.youtube.com/watch?v=Od4nSd9AVH8
Booze?? Dosn't work for me.
I wake up in the morning feeling shitty and wondering where my stack is....
not buying it...and I am not buying any stock, either. I am remaining in cash until the crash comes...which may take 10 years. Fine with me...
MH
careful, the deflation you seem to see will become hyperinflation is a Fed heart beat. Cash may be king one day and trash the next. I'd hedge with a few percentage points of savings in gold bullion.
swiss initiative will make it pop $50. two weeks gold will be at 1250. december should push the price to 1350.
isis supposedly has 200k troop army now and iran supposedly controls yemen and with that the red sea.
2nd quarter of next year oil will spike and gold will follow toward 1600.
I hope you're a better prognosticator than Eric Sprott.
Lmao. Is that you Eric?
I'm not placing much stock in Eric Sprott here but the "stock is plentiful at my LCS so supply must be fine", logic is terribly flawed. The REAL supply shock will only occur from the top down. First you will see supply gradually dry up in London, and Shanghai, and once that's gone, the stock at your LCS will be gone, virtually overnight. Supply issues that occur from the bottom up, ie your LCS first, will be temporary at best.
As the price is dipping to new lows keep stacking. TPTB cannot allow deflation. They'll keep printing until they get get a reversal and there's massive inflation.
Miners getting fucked. Silver below production costs.
I call that a huge win for the stackers.
GLD has been losing 2 tons a day for the past weeks.
Some of us believe that the inability of the physical gold market to service the demands of certain key players will be the straw that breaks...
If there is a bust in this gold market the ripples will be tidal waves. The Forex market is huge and is dependent upon gold as much as it does the dollar, the Yen or the Euro. Check out the volume of XAU/XXX traded daily. If these derivatives break it all comes crashing down fast.
Didn't Sprott get the sack from his own fund?
Because fractional reserve paper gold:physical gold is easily 100:1. The decreasing price of "gold" (as long as physical is still being delivered) represents either 1.) selling of paper gold 2.) creation of paper gold. As more paper gold is created and as more holders of paper gold elect to sell, the price of gold will continue to decrease until the market breaks and physical cannot be delivered. Only then will we know the actual price of physical.....
Sprott, the same guy who in 2013 said that gold would hit $2000 in 2014...
With market manipulation and creative thievery timing's a bitch.
Demand of physical will overwhelm supply of paper gold when the paper markets simply SHUT DOWN.
the paper price of gold NEVER HAS TO GO UP AND IN FACT WILL MORE LIKELY GO TO ZERO AS THE PHYSICAL MARKET PRICE PREMIUM SKYROCKETS.
THE LONDON AND HONG KONG AND NEW YORK AND CHICAGO 'MERCANTILE' HOUSES ALL TELL YOU THEY CAN SETTLE YOUR GOLD CONTRACTS IN CASH.
YOU HAVE NO RIGHT TO PHYSICAL DELIVERY SO YOU DON'T HAVE EVEN A COUNTERPARTY RISK ON PHYSICAL DELIVERY. YOU HAVE A COUNTERPARTY RISK ON A PAPER THAT TELLS YOU PHYSICAL GOLD SHOULD BE TRADING AT A CERTAIN POINT WHICH IS NEAR THE PRICE OF THE PAPER.
Paper is up... They must be printing <alot> of gold certificates..
http://www.staples.ca/en/Xerox-Carbonless-Paper-3-Part-Reverse-8-1-2-inc...
https://canadianinsider.com/node/7?ticker=PHY
Sprott dumping big blocks if it was going to 12, 000 pretty strange to dump
If this new consensus with the G-20 meeting that bank deposits are no longer insured by the FDIC or are now redesignated not as creditors' deposits but rather converted to "stock" in the bank, ( hello bail ins!) I wonder if these slimeball banks will give us a notice in the mail that we no longer have deposits but rather some vehicle which allows the bank by law to confiscate your money if they screw up ...again.
Wells Fargo, this means you. Maybe time to finally get my stash of cash out of there and buy some more PMs. It will be interesting to see if this causes further uptick in retail PM purchases.
Gold is up 3.70 tonight - get in while you can - LMFAO
Monthly Gold before the expected move to 1140.
http://bullandbearmash.com/chart/spot-gold-monthly-closes-3-1140-key-sup...
A stronger USD - the safe haven as we have said for well over a year (and yes unpoular to say) - will drive gold down much further.
Buying a deflating commodity is a bad idea, right Sprott?
Typically, when forces powerful enough to control a market are in process of accumulating a commodity or an equity, they manipulate the market price of the commodity or equity down in order to facilitate accumulation.
SITE's Latest Hoax: ISIS Gold Currency
http://winteractionables.com/?p=16515
Sprott isn't much better at this than Gartman.
Well, at least he's not predicting $10 crude oil, like Gartman did a few weeks ago. That would be akin to predicting $250 gold.
There will be plenty of physical gold supply..............until suddenly there isn't. Sprott doesn't know the timing of this and neither do we, but it will happen. Physical and patience, this is not a trade, it's insurance.
Gold bugs must be getting really desperate. I guess the "overwhelming" demand is the reason gold is selling below $1,200/oz. The more desperation, the bigger the lies. Oh, wait, it is manipulation keeping gold prices down -- how could I forget! But that begs the question why would anyone invest money in a market known to have rampant manipulation?
Sprott is like the Goldman Sachs of Canada. Dishonesty to benefit Sprott is their primary policy.
The fact is I live in the real world and pay in fiat. For gold to take off, other people, COMMON people, need to lose faith in fiat. The only way thats going to happen is if their is MASSIVE inflation and the common population see bread doubling in price every couple of months. Not because prices rise a percentage point or two. So i still think there is a way to go until all that fiat banks have got in reserves hits the market proper and bids up prices and hence, a way to go until gold starts its take off phase.
Good point, so why not diversify your holdings in fiat with a few percentage points in precious metals. Why keep all your eggs fiat, some are bound to spoil and go rotten. If some of your eggs are gold and silver you still have something left in your basket at crunch time.
Gold should do very well for the next few months. However it is in a corrective bear market rally, part of a longer-term decline that will see it continue lower in 2015
http://www.globaldeflationnews.com/gold-elliott-waves-forecast-a-multi-m...
Better come up with some way to find some more money, gold or otherwise. What I pay for my Obama policy I was forced to exchange my previous coverage plan for a few months back has just been increased by a factor of 9.58x. The deductibles went up, and so did the co-pays. Got the bill two days ago (AFTER the mid-term elections: imagine that)!
Like most, I have no real idea why gold is going down. No more clue than I know why crude oil is. However, could there possibly be a connection between the eventual rise in the bond market and the price of gold? There surely has to be more risk in buying any commodity, be it oil, silver or gold when measured against bonds, held to maturity. If the powers that be are trying to change the table cloth and get us all ready for the next big event, then maybe they are forcing money out of certain commodities so that it will be able to flow into the bond market, if and when real rates are finally pushed up by the FED. Dr. Marc Faber has for years pointed out that big economies like the USA and Japan have been trying (in vain, he would say) to print their way out of collapse and deflation. However, maybe the drop in gold and oil are signalling that this inflationary tactic is about to be taken away from central banks?
On the other hand, I might have no idea what I'm talking about and I'll have to get the bandages and splints out for the whacking I'm about to get. Be nice.
Still seeing people buying PMs and thinking gold going to the moon is just around the corner. LOL. Sprott said silver would be the trade of the decade. He was right so far, he just didn't mention shorting it was the trade. 50% cut since his announcement.
Get some PMs and trade the market with your fiat like the ho she is.
So gold fell and presently stands at 1186. Both Sprott and all his asset managers get to look like hero's because they had a large amount of money in gold when it was at rock bottom prices where it had been for about 20-30 years before rising again. It did rise for 9 years or so until 2011 as the Dollar fell and now it has been falling ever since (ironically as the Dollar has been rising). Paulson called the top in real estate in 2007 too and of course Peter Schiff has seen it all. When the fuck are the jokers wrong? When exactly do you say that you just might be a little off on this one. You get one big call right that a blind man could see, you make a fortune and then you continue to puff your book even when price is telling you clearly that you have been wrong. If you wait long enough and if you are well enough capitalized you can perhaps trade like that too, but generally it flies in the face of all risk models that I know of? Of course I don't have people lining up to give me billions yet but if I did I would have said somewhere around 1700 an ounce when gold tried to get through and couldn't. Hmmm....better book some profits my friends and lets go back to cash until we see what is really happening.
We can mock Buffet all we want but although he didn't go long gold he went short the US Dollar (which was the same trade) and long all those other correlating currencies making a shit load more than the gold bugs. Even Gates was on that one. Not only that but they told everyone to sell the Dollar. Even the central bankers did in 2002. Not many hedged did they. Now Buffet buys stocks and he isn't losing the last I heard too. In fact he made a shit load last year. I wonder if these guys perma bulls ever think of the term "oppotunity cost"?