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

Submitted by Tyler Durden on 11/08/2011 22:11 -0400

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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Wed, 11/09/2011 - 03:09 | 1859797 mynhair

Got my trip 2's. TG. Made up a loss.

Wed, 11/09/2011 - 03:11 | 1859800 mynhair

http://www.youtube.com/watch?v=hpkitLUbeEg

Wed, 11/09/2011 - 03:20 | 1859807 mynhair

Ride the rocket

http://www.youtube.com/watch?v=du07ZUsnIcI&feature=channel

Wed, 11/09/2011 - 03:21 | 1859809 tliberty

I honestly think that gold will top out at $2500 and ounce and silver at $100 an ounce in the next year or so.

I wonder if poeple will start using more alternative currencies other than the failing money of the State. I'm a qualified optimist, which means I hope so, but don't expect it.

I'd like to see silver coin become common again, but with the way poeple are buying it up, who knows.

http://www.golddeputy.com/

Wed, 11/09/2011 - 03:27 | 1859815 mynhair

Got side tracked by that 223 rocket.

Sorry.

http://www.youtube.com/watch?v=4uAUuCAOnGk&feature=related

Wed, 11/09/2011 - 03:33 | 1859822 mynhair

Is 224 too high?

http://www.youtube.com/watch?v=oyC-Ho4V_hQ&NR=1

Wed, 11/09/2011 - 03:37 | 1859826 mynhair

http://www.youtube.com/watch?v=H9m3GyDh6M8

Wed, 11/09/2011 - 03:39 | 1859829 mynhair