James Turk Interview With Eric Sprott On, You Guessed It, Gold

Tyler Durden's picture

Eric Sprott, Chairman of Sprott Asset Management, and James Turk, Director of the GoldMoney Foundation, meet in Munich and talk about the Munich Precious metals conference (Edelmetallmesse). They comment on Eric Sprott’s speech at the conference and how increasing interventions by central banks, from zero interest rates to money printing and bond buying have completely distorted the financial markets.

Other discussion topics include the choices between austerity and increasing stimulus and how both will bring on a meltdown, whether bankruptcy or hyperinflation brought on by money printing. They talk about the huge leverage in the banking system and the risk inherent in the system. People are only now starting to understand counterparty risk. They explain that 20-to-1 and even higher leverage is common in the banking system.

They talk about the disparities between the physical market and the paper silver markets. Eric talks about supply and demand and how the upward pressures on silver price from demand growing much faster than supply are not being accurately reflected. A 900 million ounce silver supply simply cannot cope with a 380 million ounce increase in demand and maintain current prices. Eric also explains that investment sales of silver are 50 to 1 in volume compared to gold and that this means a decreasing gold/silver ratio.

Also under discussion is Sprott's analysis which shows that the US government, with a GDP of 15 trillion, has liabilities of almost 80 trillion and that these promises will be broken just as the Greek government is breaking its commitments.

Lastly, the two talk about the short-term focus of political decisions and the bad omens for the dollar as a world reserve currency. Kicking the can down the road is increasingly not an option for bankrupt governments, as even the bond markets are increasingly uncooperative with new stimulus efforts. As an example the recent failed attempt by the EFSF to raise 3 billion. They talk about the IMF creating $280 Billion SDRs out of thin air and ask whether that will keep the party going a bit longer.

This interview was recorded on November 4th 2011 in Munich.

Courtesy of Gold Money

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??'s picture

Is Eric Ted Anderson?



perhaps a bit more sophisticated and certainly on the right side of the trade but other than that not a whole lot of difference

and my point is? Eric, like Ted is a genius selling PMs at a healthy premium to their spot price,  exploiting every opportunity to talk his book

Hopium Dealer's picture

Ted "Shylock" Anderson

markmotive's picture

When it's the USA's time to turn Italian the fiscal case for hyperinflation, and in turn gold, becomes a reality.


Snidley Whipsnae's picture

IMF SDRs = just another piece of paper

The IMF is rapidly morphing into a bank that creates credit from thin air... far from it's original charter and objectives.

The goal, imo, is for the IMF to issue SDRs for all the bad debt held by all central banks, soverigns, and money center banks around the world. At least, in those parts of the world that will play ball with the Fed, which is the driver for the IMF.

Will this scheme work? Who knows, I have seen dumber ideas work far longer than I thought possible.

dlmaniac's picture

Da hell is going on @ Turd's website btw? Is Blythe hacking it?

bernorange's picture

Eric has always been bullish on precious metals but for the short time that I've been paying attention, and this video is an excellent example if you actually listened to the half hour interview like I just did, he sees the big picture view very clearly.  I totally grok where he is coming from and what he is saying.  YMMV.


Max Fischer's picture



I, too, am very suspicious of Eric Sprott.  While I agree with his general premise that gold and silver should be part of everyone's portfolio, it's difficult for me to ignore that Sprott is just another opportunistic billionaire shark who exaggerates, misleads and seems to specifically target the gullible and naive retail market.  In many ways, Sprott is more manipulative and more sinister than other hedge fund managers because he's always in front of the retail investor pushing his book. Rarely do you see hedge fund managers doing countless YouTube videos or posting blog articles that are deliberately created for the retail public.  But Sprott - very deliberately - spends a lot of time luring the retail investor into his book. The timing of Sprott's articles and media appearances this year has been extremely suspicious.  

Sprott began the year with some nonsense about physical silver shortages.  It was pure garbage, a blatant lie meant to create the impression that the physical markets were in dangerously short supply.  So short, in fact, that a panic was imminent.  Bullshit.  As Kid Dynamite clearly pointed out, Sprott purposefully structured his options such that his silver would NOT be delivered all at once.  Those options delivered monthly, as contracted.  But Sprott doesn't tell you that. Instead, he misleads the public into believing the reason PSLV doesn't have its intended inventory is because of supposed shortages in the market. That was pure propaganda meant to hype this new ETF which went public a few weeks earlier.  Think about it... how else can Sprott pull investors away from SLV, other than to create paranoia about the physical markets?  It was very transparent. 

Next, just as the silver market was going nuts, Sprott went on a media blitz in April.  On April 5th, he rang the closing bell at the NYSE and spent half the day on CNBC, Bloomberg and Fox Business peddling his funds.  Then, on April 15th, he did it again! - rang the closing bell at the NYSE and did interviews all afternoon. How many hedge fund managers ring the NYSE bell twice in ten days?  None.  Five days later (April 20th), we get the cherry on the top:  ZeroHedge posts an a very bullish, pro-silver article written by Sprott, himself.  If you're a fund manager and you want to target investors who have a penchant for precious metals, ZeroHedge is probably the best place to go.  


Well, can you guess what happened the next day, April 21st?


Yep, you guessed it.  After three weeks of an intense media blitz and with the NAV premium fully juiced to 20%+, Sprott began dumping over 1.6M shares of PSLV the very next day.  And we all know what happened 10 days after that....kaboom!  PSLV bagholders everywhere bleeding from their eyeballs. 

Sprott is nothing more than a wolf in sheep's clothing who happens to have the trade du jour.  Beware!  Because this particular wolf likes to snack on the retail market.  

Max Fischer, Civis Mundi 






akak's picture

Sprott is just another opportunistic billionaire shark who exaggerates, misleads and seems to specifically target the gullible and naive retail market.

Jon Nadler, is that you?

SRV - ES339's picture

You clearly know nothing about the man, or his business, and I wouldn't waste my time...

Yen Cross's picture

 Tit for Tat here we come. Where is that other XAU bug. Peter Schiff?

zorba THE GREEK's picture

As much as I believe in PMs going higher, I still can't get over this feeling I have that Eric Sprott

is out to make Eric Sprott very rich. He was touting silver at $50 when he was shorting it and made 

a lot of money. I believe one should take what he says with the perverbial grain of salt.

JustObserving's picture

To be fair, he sold PSLV and bought silver and silver miners.

"So why the sales? “Every dollar of money that was raised by selling shares of [the Trust]... was reinvested in silver or silver equities,” he said."

fonzanoon's picture

did he short silver at $50 or did he sell silver at $50?

JustObserving's picture

"Earlier we reported that Sprott had sold $35 million worth of PSLV, which caused many to panic that the precious metals guru had indicated the market top in the market."  That is from Zero Hedge - the horse's mouth.

fonzanoon's picture

If he sold silver at $50 he is just smarter than I am. If he shorted it he can eat a dick. I am a big fan of Schiff. I don't know whether he would get fancy and sell at a high price and buy back but he would not short it.

Hobbleknee's picture

I would swing trade PMs too, but I fear that one day when I sell, it would take off for the moon and never come back.  So I just hang on to them for security.

jeff montanye's picture

don't lose your position in a bull market

ParkAveFlasher's picture

Thanks, here I was feeling cowardly for sticking on the sidelines.  The news has no effect on the market, only the big players do.  I'm waiting for that "dire need to sell" moment, just haven't been compulsed enough to play the game.  Although if this latest swell in gold sticks to $2500, I expect a knock down.


Good question. Big difference.

SilverIsKing's picture

If he thought silver was hitting a short term top and sold or shorted at that point, I dont see it as a big deal

On the other hand, if he thought silver was hitting a short term top and sold or shorted at that point while telling others to buy, he's a douchebag.

GoinFawr's picture

Interesting Zorba, I get a similair impression: as much as I believe in PMs going higher, I still can't get over this feeling I have that <insert name here> is out to make <insert name here> very rich

Eric Sprott was shorting silver at $50 while he was 'touting' it? Really? Can I have a witness please? Or was he just saying that by rights it ought to go higher, and sold some to buy miners?

 "I believe one should take what he says with the perverbial (sic) grain of salt"  Your choice, of course. Me, I'll take his word for what it's been worth over the last decade, thanks. Unless there was some error in judgement or fact contained in this video that I missed? Enlighten me, if you see through him so clearly. Try to stick to actual facts this time,  please.

Kidd Dynamite, that's your cue, no?

Yen Cross's picture

   NiCe -  POsT .-.---.----.----....         ! That was a good post. Thanks.

Al Gorerhythm's picture

I've been listening to the likes of Eric Sprott, GATA, Hommel, Schiff, Mises, Rothbard, Edward G Griffin, etc for many years. Their theorising and prgnostications which have made me solvent and independent. Years ago I rejected the notion of fiat currencies and their counter-party risks. It looks as though their game strategy is playing out to a tee. If you haven't seen or agreed with their stance and strategy it is too bad. You still have time to study it but at the pace that things are unfolding, you'd better do some speed reading and get that Kodak moment behind you.


Yen Cross's picture

 I'm pleased you have prospered.  i suppose you got long in the late 80's- early 90's. 


  Enjoy your nest egg.  Did miss something?   1 ToZ  = 31 grams.

Al Gorerhythm's picture

Nope, I'm one of the slow learners. It took forced retirement to startle me into consciousness. At the start of my teaching career my "financial adviser" said that on retirement I would have about 350k in my retirement fund. He was near the mark on the total.

Sitting in front of him, I remember clearly the strategy that I would employ to finance my retirement. I told him that at those levels I would be able to buy 5 or 6 houses and rent them out to those who couldn't afford a home. That way I wouldn't be a burden on the national pension fund. He was impressed with my plan.

When I retired, the nominal amount was there but the price of homes had risen to an average of about 4-500k. I couldn't buy one home, unless it was a doer-upper. I was stunned by the fact that one of the homes that I and my wife considered back in the 80s, hadn't even had a coat of paint but was now in a prime area and was over 1 miilion asking price. 

I realised that if the house hadn't changed then the purchasing power of my past savings had. I was stunned and started my investigation about my situation, with a series of questions that I wrote out for myself. eg. What is money and where does it get its value.? If money was earning (magical) interest, why did it lose value? (That's not what we were taught in maths claaSS WITH THE POWER OF COMPOUNDING INTEREST .Oops!) Why didn't compound interest work for me? The figures were there. Where does money come from? What is money? How is my labor tied to money? Who ripped me off?

I still have that note and have answered those questions to the point that they have changed my politics, ostracised me from my friends, been ridiculed by family and raised questions about who in government knows. Is everyone in government on board or have they just happen to be voted through populist (or even well intentioned principles) into positions they think they have a grasp of?

When you reach the heights of joining the inner sanctum or circle of government, you are either well aware of the machinationds of the fiat system and its symbiotic ties to corporate enterprises, or you are the patsy for them. Treasurers know. Presidents and Prime Ministers know. Princeton economists know. Bankers know (the members of the board and CEOs at least). Your average bank manager and grunt economics teachers have no clue. I've put it to them and they usually have a stunned mullet look on their faces when they finally see my point.

My journey has been an awakening from the stupor as induced by the educational system. There will be a mass awakening. Some will get it the hard way. I got off easy. I'm out of it and am open to talking to folks about it. One thing that has taken me a while to re-learn is an axiom from my teaching days which is relevant to all learners (I'm a slow one). I think it is Confucian: "When the student is ready; the teacher will appear".

By that, I mean that I have given up beating the drum about this to family, friends and cornered victims of my born-again diatribes. Oops, am I at it again. No, just sounding off.


Gavrikon's picture

Feel free to continue to opine.  I feel you.  In my case, only one of my sons has paid attention and put silver away.

Thomas.2012's picture

Thanks for sharing!

I am in my fourties so there are a few decades to go for a possible retirement payment.

Lucky me, I was pretty sure in my twenties that by the time I am old enough for retirement I will only get a handshake plus a dirty smile. And because I am born in Europe that was pretty strange because at this time everybody seemed to work only to retire early to get back what they have paid into the system.

20 years ago it was only a feeling without paying much attention at politics and how you said it so well "what is money".

But the feeling helped me to stay away from debt, let me buy some small properties, every few years a one or two year old car and all using cash.

The only thing I regret is the fact that I was watching the Lehmann thing, scratching my head, starting to read and learn.

But since I am a very slow learner I was only able to start in late 2009 to act accordingly. I sure missed some great opportunities, but better late than never ...

Thanks again and good luck to you.

Al Gorerhythm's picture

And because I am born in Europe that was pretty strange because at this time everybody seemed to work only to retire early to get back what they have paid into the system.

You never get back what you pay into the system. Maybe noninally but certainly not comparitively when based on lost purchasing power. The days of chasing yeild are over. Why do savings have to earn a yeild? Why is debt an asset? I get the momos reply that debt earns you an income stream but that income stream is at the expense of savers and down the line, producers. Producers can no longer afford to carry the debt of nations. It's all over now, Baby Blue.

Graham Bonnet


XitSam's picture

"When you reach the heights of joining the inner sanctum or circle of government, you are either well aware of the machinationds of the fiat system and its symbiotic ties to corporate enterprises, or you are the patsy for them."

Obama = patsy.

"I think it is Confucian: 'When the student is ready; the teacher will appear'."

I don't know where it comes from: "Some people never learn."

Diogenes's picture

I agree with you to a point but I doubt the powerful people are as in the know as you think.

Years ago I saw an interview with a man who was running for Prime Minister of Canada. The interviewer kept asking questions about economic policy and the politician kept dodging them. Finally the interviewer asked point blank what his economic policy was. The politician's answer was enlightening. He said that when he was in university he had a choice between taking French and Economics. As he knew he was going into politics, a knowledge of French was mandatory so he never studied Economics. Therefore it was pointless to ask him anything about economic policy. This man, Joe Clark, eventually became Prime Minister of Canada.

I have come to the conclusion that a knowledge of economics is incompatible with a belief in politics. To believe in political solutions, one must be able to believe that it is possible to enrich a people by taking away part of their money, spending some of it on yourself, and giving the rest back to the people you took it from. This is obviously absurd. Yet it is the foundation on which modern politics rests.

In general I belive politicians are sincere in the belief that their work has value. I also believe they are forced by circumstances into being extremely short sighted and venal. In spite of this they fondly believe they are doing good, somehow, even as they run the country into the ground.

Such fatuity can best be explained by ignorance, combined with wishful thinking and mendacity.

Or, as Jack London pointed out a hundred years ago, it is easy for a person to miss something when his job depends on not seeing it.

GoinFawr's picture

"I agree with you to a point but I doubt the powerful people are as in the know as you think."

No, you're making sweeping generalisations. Eg. the current Prime Minister of Canuckistan is an Economist by education, yet he's deliberately running massive deficits as a setup to further undermine that country's sovereignty (NAFTA and now CETA in 2012). Look at this garbage:

"And we cannot be effective at major economic matters any longer unless we work with our economic partners around the world and work with them closely and intimately. That is essential. I know some people don't like it. It is a loss of National Sovereignty but it is a simple reality. It is a simple reality."- PM Stephen Harper

Translation: "...and don't we have half the fools on our side, and ain't that a big enough majority in any town?" -Samuel Clemens

Your point may have some validity until the politician gains power, but then they get brought up to speed right smartly.  Could have something to do with why Ol' Joe Clark's minority gov't didn't last: he "set down on a red hot stove, and got right up ag'in".

Follow the money. Always follow the money.


Try to ignore your ideological preconceptions and note the inverse relationship between corrupt, inscrutable power and fiscal responsibility.

Freebird's picture

Perverted salt - new one on me

TN Jed's picture

Sodium and Gomorrah.  Great place to visit but I wouldn't want to live there.

akak's picture

And here I always thought it was Saddam and Gonorrhea.

GoinFawr's picture

Heh, both were pleasure before they arrived, and after were a pain in the dong. (h/t Monty Python)

Yen Cross's picture

   Salt of the Earth. The Persians and Romans traded " salt" for " GOLD" .   History lesson.     



     TOZ vs TOZ hence the 31 Gram XAU weight!   1.4667

CrazyCooter's picture

Yeah, but you can't eat salt!



UP Forester's picture

Sure you can.  But only on iPads....

Yen Cross's picture

 You are Crazy.  Short the spx on the 5th day.

Sokhmate's picture

Henceforth, salted gold was born

delacroix's picture

Eric Sprott is already very rich

Platinum_Investor's picture

Eric Sprott sold at $50 = Smart.

Where did it ever say anywhere that he shorted Silver?

And yes he did say that he moved the proceeds into silver miners and now he was a buyer at $30 silver again of course.


passwordis's picture

As much as I believe in PMs going higher, I still can't get over this feeling I have that Eric Sprott

is out to make Eric Sprott very rich.


 His net worth is over 150 million. He's already been very successful at making himself rich. Can't he be both rich and right?

If you distrust him than you distrust the fundamentals which have driven the market over the last 10 years. It's not like he is saying anything new.

Temporalist's picture

"Eric Sprott, a 40-year veteran in the investment industry, is believed to have a net worth of at least $1.3 billion, according to Bloomberg Business Week."



And he's still right.  I find it hysterical that if people had listened to him at any point in the past 10 years except at the very peak here at $50 they would have made a great return, yet douchebags like to post how he's talking his book.  He plainly says he's 80% invested and doesn't recommend that to anyone...how many shitbag brokers will say something like that to you?  Where does he make money if people go out and buy physical from a coin dealer?


What a bunch of troll fuckwads every time Sprott makes a peep in the news they come out like the cockaroaches they are.

Motorhead's picture

Munich is such a kick-ass city.  Einfach Spitze!

navy62802's picture

Frankfurt isn't too bad either.

Gavrikon's picture

Frankfurt sux.  I know, I live here.  Munich is WAY better!