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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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Tue, 11/08/2011 - 22:25 | 1859280 ??
??'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

Tue, 11/08/2011 - 22:36 | 1859365 Hopium Dealer
Hopium Dealer's picture

Ted "Shylock" Anderson

Tue, 11/08/2011 - 23:01 | 1859426 markmotive
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.

Wed, 11/09/2011 - 00:37 | 1859615 Snidley Whipsnae
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.

Wed, 11/09/2011 - 01:41 | 1859719 Hugh G Rection
Hugh G Rection's picture

Bernanke references zerohedge...

Wed, 11/09/2011 - 03:49 | 1859839 dlmaniac
dlmaniac's picture

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

Wed, 11/09/2011 - 00:15 | 1859570 bernorange
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.

Wed, 11/09/2011 - 03:21 | 1859795 Max Fischer
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 






Wed, 11/09/2011 - 03:37 | 1859827 akak
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?

Wed, 11/09/2011 - 11:55 | 1860953 SRV - ES339
SRV - ES339's picture

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

Tue, 11/08/2011 - 22:19 | 1859288 Yen Cross
Yen Cross's picture

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

Tue, 11/08/2011 - 22:20 | 1859293 zorba THE GREEK
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.

Tue, 11/08/2011 - 22:26 | 1859316 JustObserving
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."

Tue, 11/08/2011 - 22:29 | 1859328 fonzanoon
fonzanoon's picture

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

Tue, 11/08/2011 - 22:31 | 1859339 JustObserving
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.

Tue, 11/08/2011 - 22:37 | 1859370 fonzanoon
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.

Wed, 11/09/2011 - 05:15 | 1859896 Hobbleknee
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.

Wed, 11/09/2011 - 06:37 | 1859953 jeff montanye
jeff montanye's picture

don't lose your position in a bull market

Wed, 11/09/2011 - 08:27 | 1860121 ParkAveFlasher
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.

Tue, 11/08/2011 - 22:35 | 1859361 SHEEPFUKKER

Good question. Big difference.

Wed, 11/09/2011 - 01:08 | 1859669 SilverIsKing
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.

Tue, 11/08/2011 - 22:52 | 1859396 GoinFawr
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?

Tue, 11/08/2011 - 22:54 | 1859406 Yen Cross
Yen Cross's picture

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

Wed, 11/09/2011 - 00:19 | 1859583 Al Gorerhythm
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.


Wed, 11/09/2011 - 01:28 | 1859696 Yen Cross
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.

Wed, 11/09/2011 - 02:11 | 1859750 Al Gorerhythm
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.


Wed, 11/09/2011 - 03:01 | 1859787 Gavrikon
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.

Wed, 11/09/2011 - 03:49 | 1859838 Thomas.2012
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.

Wed, 11/09/2011 - 04:23 | 1859864 Al Gorerhythm
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

Wed, 11/09/2011 - 09:12 | 1860275 XitSam
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."

Wed, 11/09/2011 - 12:18 | 1861045 Diogenes
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.

Wed, 11/09/2011 - 13:20 | 1861219 GoinFawr
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.

Tue, 11/08/2011 - 22:55 | 1859410 Freebird
Freebird's picture

Perverted salt - new one on me

Tue, 11/08/2011 - 23:48 | 1859517 TN Jed
TN Jed's picture

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

Tue, 11/08/2011 - 23:59 | 1859534 akak
akak's picture

And here I always thought it was Saddam and Gonorrhea.

Wed, 11/09/2011 - 00:07 | 1859551 GoinFawr
GoinFawr's picture

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

Wed, 11/09/2011 - 00:13 | 1859566 Yen Cross
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

Wed, 11/09/2011 - 00:45 | 1859628 CrazyCooter
CrazyCooter's picture

Yeah, but you can't eat salt!



Wed, 11/09/2011 - 00:48 | 1859631 UP Forester
UP Forester's picture

Sure you can.  But only on iPads....

Wed, 11/09/2011 - 01:30 | 1859703 Yen Cross
Yen Cross's picture

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

Wed, 11/09/2011 - 00:54 | 1859641 Sokhmate
Sokhmate's picture

Henceforth, salted gold was born

Tue, 11/08/2011 - 23:05 | 1859440 delacroix
delacroix's picture

Eric Sprott is already very rich

Tue, 11/08/2011 - 23:26 | 1859483 Platinum_Investor
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.


Wed, 11/09/2011 - 00:06 | 1859552 passwordis
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.

Wed, 11/09/2011 - 04:34 | 1859874 Temporalist
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 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.

Tue, 11/08/2011 - 22:25 | 1859314 Motorhead
Motorhead's picture

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

Tue, 11/08/2011 - 22:26 | 1859318 navy62802
navy62802's picture

Frankfurt isn't too bad either.

Tue, 11/08/2011 - 22:40 | 1859380 tickhound
tickhound's picture


Wed, 11/09/2011 - 03:03 | 1859790 Gavrikon
Gavrikon's picture

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

Tue, 11/08/2011 - 23:10 | 1859448 TradingJoe
TradingJoe's picture

Mey, des is halt so in Bayern, host mi?!

Wed, 11/09/2011 - 03:04 | 1859792 Gavrikon
Gavrikon's picture

Ja, i' hab's gehoert!

Tue, 11/08/2011 - 22:26 | 1859317 Hearst
Hearst's picture

Once compeating currencies - Silver & Gold are re monetized, will anyone accept fiat?

Wed, 11/09/2011 - 01:05 | 1859662 FeralSerf
FeralSerf's picture

Don't hold your breath!  The guys with the guns don't want gold to be remonetized because they don't have much of it.  They prefer to pay for their ammo with paper.  They don't need to dig to get the paper.

Wed, 11/09/2011 - 01:13 | 1859676 FeralSerf
FeralSerf's picture


Tue, 11/08/2011 - 22:28 | 1859321 SHEEPFUKKER

I heart Mr.  Sprott and Mr. Turk. Baaaaaaaaaaaaaaa.

Tue, 11/08/2011 - 22:35 | 1859362 HD
HD's picture

For a fraction of a second I though the photo was Keith Olbermann...

Tue, 11/08/2011 - 22:46 | 1859394 Motorhead
Motorhead's picture

LOL (but now I am sick to my stomach).

Tue, 11/08/2011 - 22:36 | 1859366 Anne Ominous
Anne Ominous's picture

James Rickards: "Gold is money".



Tue, 11/08/2011 - 22:48 | 1859399 Motorhead
Motorhead's picture

Oh, c'mon now, the chairman of the US Federal Reserve, Benjamin S. Bernanke, specifically and unequivocally stated that gold is not money.  The Chairman knows all!

Tue, 11/08/2011 - 23:03 | 1859425 navy62802
navy62802's picture

The people who want to redistribute your wealth will always spout that nonsense. Because if you own gold, it is nearly impossible to dilute your wealth. "Gold is not money." "Gold is a bubble." "Gold is about to crash hard." These are all phrases that have been bouncing around for the past decade or more. These people have been wrong on every count, yet they are still respected in their field. After a while, you have to wonder why the experts would be saying this shit in the face of so much evidence to the contrary. And my conclusion is that they believe if enough people say the same thing for long enough, people will believe they're right without even checking the facts. And the result is that we have investors who (it's just ridiculous to type this) "flee to the safety of cash." This is the mindfuck, and it is precisely what central banks want. Because the more people who are in cash, the more they can manipulate wealth.

Wed, 11/09/2011 - 00:03 | 1859546 akak
akak's picture

These people have been wrong on every count, yet they are still respected in their field. After a while, you have to wonder why the experts would be saying this shit in the face of so much evidence to the contrary. And my conclusion is that they believe if enough people say the same thing for long enough, people will believe they're right without even checking the facts.

Just like those who continue to spout the nonsensical lie, and spread the malicious pro-establishment smokescreen, about "the threat of deflation", in the face of ALL historical and common-sense evidence that it is INFLATION (i.e., currency depreciation) that is the real and guaranteed threat in the current fiscal environment, not some mythical, never-before-seen appreciating fiat currency.  Please!

Wed, 11/09/2011 - 00:46 | 1859618 DavidPierre
DavidPierre's picture

      Bill Murphy on NitWits

Having to deal of late with the CPM Group’s Jeff Christian (who exclaims that everything GATA says is a lie), I had not bothered even to look at what the original GATA "disser," Jon "The Nitwit Nadler," has said for some time … so I took a gander at his commentary yesterday for amusement purposes.

I was not disappointed.

Both Christian and Nadler, who are constantly covered by the press, have been as wrong over the past decade about what gold and silver prices do as anyone in the world.

It is hard to imagine how people who follow the precious metals on a daily basis could get to be so out of it and still be in business in such a long bull market.

For example, two years ago at the Silver Summit with gold below $1,000, Christian told the attendees the price of gold would average $946 over the next decade. Good luck on that call!

I can’t recall when Kitco’s Nadler was bullish one time all the way up.

To support his perennial bearishness he is constantly souring the media for other bears and points out what they have to say. Yesterday The Nitwit was at it again. Funnily enough, he quotes what may be the only two market pundits who have been as wrong all the way up as both he and Christian … that being Ned Schmidt and Robert Prechter.  I recall going to a Blanchard late spring conference outside of Atlanta with gold around $300 and Prechter was the raging bear even back then.

The Nitwit on Monday:

"Potential attempts to touch the $1,800 mark might be in the works for the day/week in gold but nervousness prevails and European news will play the pivotal role in the market, perhaps more so than the dollar’s gyrations. On the other hand, silver does appear to be struggling somewhat at this juncture.

"Veteran market follower Ned Schmidt relays his take on the white metal as follows this morning: "The chart has a decidedly negative pattern. Silver has been trading below the 200-day moving average, now $37, since the last week of September. All of that does not create a picture of a price preparing to skyrocket to a new high. Rather, it is a picture of something with the path of least resistance being down. We still expect Silver to make an important low in the first quarter of the new year."

"A similar take on silver was found in the late Friday production of the Elliott Wave update:

"A "double divergence" has developed between gold and silver. Silver made a lower high in early September relative to gold's all-time high at $1921.50 on September 6. This five-month bearish divergence between the higher-beta silver and the lower-beta gold led to a decline in both metals to the September 26 low at $1532.20 in gold and $26.02 in silver. Both metals have bounced since, with another smaller divergence developing since October 28.

Gold has exceeded its October 28 high while silver remains beneath its similar high at $35.71, which met the internal trend line shown on the chart. Since the near-term wave structure of the bounce in both metals counts best as an upward correction, the potential remains high for renewed across-the-board decline.

Gold's next leg lower, a third wave, should eventually draw prices toward $1300, the bottom of a fourth-wave of lesser degree. The area surrounding the $23.00 level in Silver remains the next short-term target."

Not to leave well enough alone, The Nitwit scoured the news media to find anyone else who was bearish yesterday. He found one … a Chinese mining executive whose gold price projections match Jeff Christian’s latest gold call mentioned on BNN not long ago … that gold would average $1200 to $1300 per ounce over the next decade...

Nadler is a hopeless, clueless one, but at least consistent. He truly has earned his nickname, "The Nitwit."

The key to understanding the gold and silver markets has been to know the ramifications of the gold/silver price suppression scheme, and the real supply/demand picture in each precious metal, which has been so bullish for so long now. As a result of this GATA understanding, we have known where the prices of gold and silver were (and are) going and why.

That those clowns refuse to go there is their problem.

per Bill Murphy

Wed, 11/09/2011 - 01:06 | 1859661 akak
akak's picture

Nadler is such an idiotic, disingenuous, lying, bankster-loving, hate-filled anti-gold propagandist and bastard that it astounds me that ANYONE, even in the clueless mainstream media, is willing to give him the time of day, much less allow him to speak as an ostensible "observer and analyst of the gold market".

I have to wonder just how much business Kitco has lost over the years purely due to their employment of that arrogant and malicious gold-hating troll as their official spokesman; his status as such is truly a mystery for the ages.

Wed, 11/09/2011 - 01:45 | 1859688 DavidPierre
DavidPierre's picture

I know for sure that they lost me as a customer years ago... went over to SprottMoney to buy my bullion when they first started.  I even dropped off my links... he pissed me off so much.  Now I use

Kitco must be running a hell of a scam to keep him onboard.

Kitco Charged With Massive Tax Fraud Scheme, Business Viability In Question
Wed, 11/09/2011 - 01:59 | 1859741 akak
akak's picture

Like you, I refuse to even click on their homepage any longer, much less read the outrageously biased daily diatribes and anti-gold propaganda of that Transylvanian assclown.  And to think, he and his parents fled their native homeland of Romania with gold coins sewn into the linings of their clothes!

Wed, 11/09/2011 - 02:06 | 1859745 DavidPierre
DavidPierre's picture

The NitWits !?

They should have left Jon behind.

Wed, 11/09/2011 - 02:50 | 1859782 akak
akak's picture

No, they should have sacrificed him in a blazing fire to Moloch --- whom he now serves anyway.

Wed, 11/09/2011 - 03:10 | 1859799 Gavrikon
Gavrikon's picture


Wed, 11/09/2011 - 02:18 | 1859757 Milton Waddams
Milton Waddams's picture

DP, curious, are you the author of mtwsfh or just copying and pasting the author's words?

Wed, 11/09/2011 - 04:05 | 1859789 DavidPierre
DavidPierre's picture

 What's your point?

Wed, 11/09/2011 - 10:32 | 1860629 juslen
juslen's picture

He is asking you a question. Probably curious as to whether you are the author. I was wondering the same thing. Zerohedge no doubt has writers who also post comments.

Wed, 11/09/2011 - 03:08 | 1859796 Gavrikon
Gavrikon's picture

Jon "Nads" Babbler?  Has he EVER been right about ANYTHING?

He's a great reverse barometer.


Wed, 11/09/2011 - 03:42 | 1859832 akak
akak's picture

Jon "Nads" Babbler?

He's a great reverse barometer.

More like a banksterometer, full of liquid bullshit, whose level varies directly with the pressure exerted by Ben Bernanke's wizened penis on Jon's obediently twitching and willingly surrendered spincter.

Wed, 11/09/2011 - 03:58 | 1859848 Al Gorerhythm
Al Gorerhythm's picture

I've dubbed him: Nadless Nadler.

Tue, 11/08/2011 - 22:39 | 1859374 yabyum
yabyum's picture

I like what their thinking, I own pslv and phys. The profits I have made  went into the phyzz stack as profits should.

Tue, 11/08/2011 - 22:39 | 1859377 Yen Cross
Yen Cross's picture

 Technically Speaking. i like that 200 day moving Average in ( XAU) to get long again.  Those margin hikes are nasty. before ya know it you will be trading { Physical} , and shopping for vaults, after armageddon.

Tue, 11/08/2011 - 22:42 | 1859386 mynhair
mynhair's picture

Huh?  Is your bug-out bag packed?

You aren't in the US, I guess.

Tue, 11/08/2011 - 23:22 | 1859474 GoinFawr
GoinFawr's picture

Yen, you're t00 hi! 'R00fy' that.

Tue, 11/08/2011 - 23:29 | 1859485 Yen Cross
Yen Cross's picture

 I'll lay off that " Earl Gray" , Goin Fawr.    What is your Immortal ( Running Man) , reason for being here? Surely it isn't trading charts.  I agree with ' MOST" of yours.?

Tue, 11/08/2011 - 23:39 | 1859490 Yen Cross
Yen Cross's picture

  Thanks Goin Fawr , Noted. I checked the charts.  The ( XAU trade is ?)  Everyone keeps  jacking Z/H. I'll switch to sat link.

Tue, 11/08/2011 - 22:40 | 1859378 mynhair
mynhair's picture


OH votes for continued rape by public sector unions.  Look for an ex-OH near you soon.

Tue, 11/08/2011 - 22:41 | 1859381 PaperBear
PaperBear's picture

On todays interview with Max Keiser, Alex Jones mentioned that Reuters (I think) are reporting that Bank of America is filing for chapter 11 bankruptcy but I have just looked at the website for reuters but did not see the story.

I suppose Bank of America going bankrupt is only a matter of time.

Tue, 11/08/2011 - 22:45 | 1859388 SHEEPFUKKER

They don't call it Bank of America for nothing as pretty soon Americans will own it, or what's left of it.........errrrrrr, the debt.  Baaaaaaaaaaa!

Wed, 11/09/2011 - 00:51 | 1859636 CrazyCooter
Tue, 11/08/2011 - 22:43 | 1859382 DoChenRollingBearing
DoChenRollingBearing's picture


I would invite everyone interested in GOLD to read FOFOA's great new piece on gold and money "Moneyness" at:

Yes, it IS long, but it is very, very good.


Tue, 11/08/2011 - 22:48 | 1859397 mynhair
mynhair's picture

And I would like to invite everyone still in the USSA to GTFO, but stay away from SA.

No sweat Bearing, I'm going to where their Constitution was adhered to.

Wed, 11/09/2011 - 00:56 | 1859647 CrazyCooter
CrazyCooter's picture

If you are going to say such things, its really useless to express such opinions in the negative. I would invite everyone to get out of POVERTY!!!1!1! Don't mean to sound like an ass, but it just isn't useful.

It is more becoming to say such things as, "anyone looking to get the hell out of dodge should look seriously at X or Y because of <economics/>, <common_law/>, <etc/>.

I regularly sell Alaska as a good destination for folks who have skills that can get them a solid job up here.

I also regularly recommend Richard Maybury's "What Ever Happened to Justice" for those looking to leave their country for a new home. National legal framework is very important.



Wed, 11/09/2011 - 04:13 | 1859857 LikeClockwork
LikeClockwork's picture

If everything does go to hell, can I just ask, how is your Russian comrade? A few husky sled dogs won't keep Putin's men out of Alaska for long.

Tue, 11/08/2011 - 23:01 | 1859422 Freebird
Freebird's picture

As good as...well... gold

Tue, 11/08/2011 - 23:45 | 1859508 dlmaniac
dlmaniac's picture

FOFOA needs to get off that Euro-FreeGold pipe dream. It's obviously another paper game designed by da bankers who just would not let go their FIAT toy to rip the public off.

Wed, 11/09/2011 - 01:43 | 1859722 RockyRacoon
RockyRacoon's picture

You have obviously NOT read the latest post by FOFOA.   You are so off the mark it's not even arguable.

Wed, 11/09/2011 - 03:21 | 1859808 dlmaniac
dlmaniac's picture

I knew his FIAT + gold model well enough to state it with absolute certainty it would not work. He seems to be obsessed with that basically another central banker planning model while failing to realize bankers will never stop rigging it for their own favor so his model is hardly any better that what we have right now.

Tue, 11/08/2011 - 22:58 | 1859411 mynhair
mynhair's picture


What is your plan when your access to the I-net backbone is gone?

You still Chilling, right?

Wed, 11/09/2011 - 00:09 | 1859560 DoChenRollingBearing
DoChenRollingBearing's picture

Chilling is the right word.

I guess the way to answer is do I stay or do I go?  Do I stay and fight (if things get really bad), or do I just flee to Peru and be rich down there?  I will just wait and see.  I cannot predict the future.

Tue, 11/08/2011 - 23:02 | 1859428 mynhair
mynhair's picture

OH - votes for continued rape by Pubic Sector Unions

Votes Oblahma does not luv me.

Tue, 11/08/2011 - 23:05 | 1859434 Summerlivin
Summerlivin's picture

"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." 

The movements since October after the late-summer rise in gc make me glad I'm watching my support and resistance levels every day. The disparities between physical and paper markets that exist blow my mind, I can't imagine our current trajectory/financial system setup is sustainable over the next 20 years. Similar to the article about GS's aluminum stockpile (bottleneck), although opposite market effect. 

Wed, 11/09/2011 - 01:03 | 1859659 CrazyCooter
CrazyCooter's picture

Paper, at this point, is a fools errand.

Just like MF Global, you must fully understand you wake up one day, having played by the rules, and your entire capital account on deposit reduced to zero. But, maybe you win!

Your call.



Tue, 11/08/2011 - 23:16 | 1859464 disabledvet
disabledvet's picture

And in this corner "the man who exterminated all of Europe from Planet Earth: John D. Rockefeller."

Tue, 11/08/2011 - 23:20 | 1859473 TradingJoe
TradingJoe's picture

I keep buying physical every month just as I can get my hands on fiat and after then usual living expenses are covered. Don't give much on talking heads or their books, everyone has to take care of himself, there should not be any reliance on others, that would be plain stupid!

Tue, 11/08/2011 - 23:20 | 1859475 Caviar Emptor
Caviar Emptor's picture

Inflation risks multiplying alarmingly. Because of the vicious cycle that MMT has baked into the cake coupled with the utter determination to keep the financial parasites wealthy. There will be no thoer choice but to print oceans of dollars else face the prospect of the grand reset. It's too late to turn back now

Tue, 11/08/2011 - 23:34 | 1859489 Sizzurp
Sizzurp's picture

Unfortunately the central bankers have lost our trust with their insane money printing and manipulations.  This is forcing real capital into hiding, into gold.  The economy will suffer until there is a way for this capital to be liberated back into circulation where it can do it's thing, but that won't happen until there is trust in the currency and government.  That is why we need a gold standard and the old debts extinguished.  It is the only way to reset the economy and bring capital out of hiding.  FRN's are toast. It is better to accept it now and move on rather than taking the death dive while more capital is destroyed or hidden away.

Tue, 11/08/2011 - 23:47 | 1859513 Caviar Emptor
Caviar Emptor's picture

+1. It will be a grinding process rather than a sudden disaster, unfortunately. Buying power of the dollar will just erode and erode and erode. Kind of like it's doing right now already. Prices for necessities took a big leap this year after a more moderate pace in 2010. And that's in the face of killer unemployment, falling wages and slender credit. Wash, Rinse, repeat. 

Tue, 11/08/2011 - 23:59 | 1859519 bulldung
bulldung's picture

I am disillusioned with Sprott and agree with the comments regarding his decisions being for his own benefit rather than shareholders in his funds.IMHO for him to be allowed to unload enough of PSLV to markedly effect share price was manipulative.If it was for the benefit of the fund the fund should have sold with the premium and reinvested.The way Sprott sold was like front running his own shareholders.I am not disillusioned with PM , just the way Sprott uses his shareholders.(rant on)

Tue, 11/08/2011 - 23:55 | 1859528 Yen Cross
Yen Cross's picture

  Amazing. I come back to the States  and I'm a " Victem   )um( om?   I was Born here and raised here. The United States, isn't the one I was bourne into.


  The U.S. is a joke! Romans come to mind!

Wed, 11/09/2011 - 00:00 | 1859539 UP Forester
UP Forester's picture

The part that sez "render unto Caeser?"  Or the ones that crossed the Rubicon?

Wed, 11/09/2011 - 00:07 | 1859555 akak
akak's picture

The part about Alaric and the Visigoths at the city walls, demanding gold.

Wed, 11/09/2011 - 01:10 | 1859672 CrazyCooter
CrazyCooter's picture

Or the part about the Byzantine empire rising from the ashes of the Roman empire and lasting 1000 years after all the worthless shit was cast aside?

Didn't say it was pretty, but do not discount the US with its plentiful natural resources, agricultural base, technology/engineering base, etc.



Wed, 11/09/2011 - 01:35 | 1859713 Yen Cross
Yen Cross's picture

  All three of you Indians made my eskimo day!  +~


  Chilly Willy...>

Wed, 11/09/2011 - 09:21 | 1860315 ParkAveFlasher
ParkAveFlasher's picture

Byzantium = Mexico?

Wed, 11/09/2011 - 12:14 | 1861058 tamboo
tamboo's picture

byzantines flourished by containing the jusual suspects,

not taught at your local juniversity.


MULLINS on Ezra Pound's formula for preventing Jewish conquest ...

Tue, 11/08/2011 - 23:59 | 1859535 UP Forester
UP Forester's picture

Good thing their view is from the 4th.  It's now the 8th, the Euro is saved, banks are now well capitalized, and stocks are cheap!



I like the line "Now the can is a 2-ton boulder...."

Wed, 11/09/2011 - 00:07 | 1859554 mynhair
mynhair's picture

Youse guys will miss me when I'm gone.

Fuk you.

Wed, 11/09/2011 - 00:10 | 1859561 mynhair
mynhair's picture

Fuk OH, too.  Voting for rape?  This country is toast.

Wed, 11/09/2011 - 00:18 | 1859577 Yen Cross
Yen Cross's picture

 Mynhair can I shoot a flaming arrow through your mello- dramatic Bull Shit?   Pick a chart! Any Chart ?

Wed, 11/09/2011 - 01:32 | 1859710 mynhair
mynhair's picture

You can do whatever you want.

Wed, 11/09/2011 - 00:18 | 1859578 TheGoodDoctor
TheGoodDoctor's picture

God it's like Sprott and Turk etc. are the anti Wall Streeters and you guys bitch about their loyalties. Pick a fucking side and STFU!

Wed, 11/09/2011 - 01:07 | 1859667 bill1102inf
bill1102inf's picture

"They explain that 20-to-1 and even higher leverage is common in the banking system."  AND then THAT leverage is used to buy/sell Gold/Silver at a LEVERAGE rate of 10:1-15:1.  So, what is the TRUE maximum leverage here folks?  With $1 Billion USD Id bet you could control 100 BILLION dollars worth of gold.  Since this is what the 'spot' price is based off of, its just a SCAM, just like Housing, except EXPONENTIALLY worse.  

Wed, 11/09/2011 - 01:37 | 1859697 mynhair
mynhair's picture

Please continue.  I'm just posting tunes for Fx traders.

It's mostly boring.  You should try it.

Wed, 11/09/2011 - 01:59 | 1859742 Karl Danneskjold
Karl Danneskjold's picture

best song you've posted...keep 'em coming

Wed, 11/09/2011 - 02:21 | 1859759 mynhair
mynhair's picture

Trying.  Unlike those TD klowns.

Wed, 11/09/2011 - 01:58 | 1859739 mynhair
mynhair's picture

I need trip 2's, so sad my bad.

Wed, 11/09/2011 - 02:02 | 1859744 mynhair
Wed, 11/09/2011 - 02:06 | 1859747 mynhair
Wed, 11/09/2011 - 02:10 | 1859749 caerus
caerus's picture

i'm gonna go ahead and suggest this

floyd - money

Wed, 11/09/2011 - 02:11 | 1859752 mynhair
Wed, 11/09/2011 - 02:17 | 1859755 mynhair
Wed, 11/09/2011 - 02:29 | 1859763 mynhair
mynhair's picture

Ad heaven.

She looks that good now.

Wed, 11/09/2011 - 02:29 | 1859766 caerus
caerus's picture


touring in 2012...hurry before the mayans fuck it all up

Wed, 11/09/2011 - 02:39 | 1859774 mynhair
Wed, 11/09/2011 - 02:46 | 1859777 mynhair
Wed, 11/09/2011 - 03:01 | 1859784 mynhair
mynhair's picture

Sorry for the repeat, but it is working for me.

Just need trip 2's.....

Wed, 11/09/2011 - 03:02 | 1859788 silver4me
silver4me's picture

A quote from king james bible

Proverbs 13:11 (KJV) Wealth gotten by vanity shall be diminished: but he that gathereth by labour shall increase.

Proverbs 13:11 (NIV) Dishonest money dwindles away, but whoever gathers money little by little makes it grow.

*Taken from fofoa article

My point/thought on this is, TPTB have been changing this in more ways than one. Society has been brain washed into spending wildly. All reality shows, music videos show reckless spending. Low interest rates killing the saving concept in everyone.

Do NOT follow this link or you will be banned from the site!