Sprott Berates Berkshire's Buffoons And Says "All Markets Are Manipulated"

Tyler Durden's picture

From the moment we all got to peek behind the over-leveraged financial system reality thank to Lehman's collapse, the-powers-that-be have made every attempt to stop this whole thing unraveling. Eric Sprott humbly suggests, when the CNBC anchor in the following clip questions recent gold price action as evidence of something wrong in his thesis, that just as Jim Grant opines, "All markets are manipulated" and that Central Banks (who are desperately trying to revive the dying system in every extreme monetary scheme possible) simply do not want to see the price of gold rising. He then notes that Silver is likely to be the investment of the next decade (although offers no strong thesis other than levered gold). Shrugging off the obfuscation from Omaha, "People who sell paper gold and paper silver can rule the markets in the short-term but physical participants will win the day in the long-run". Detailing some fundamental drivers for gold's advance, as the investment of the last decade and so for those three gentlemen (Buffett, Gates, & Munger) who missed it, I don't know that I should respect their opinion at this point in time.

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SilverTree's picture

Sprott is the man.

Colombian Gringo's picture

Sprott is talking his book but at least he makes some sense, unlike the doddering old Munger moron who thinks only shetl jews sewing coins into their robes and running from the Nazis buy gold. I don't know what is worse, his flabby foot in the mouth racism, or appalling ignorance of why billions of indians and chinese do not trust their governments and/or banking systems.

Levadiakos's picture

Sprott, buffoon. I can see the similarities.

NewThor's picture

Has anyone  else noticed how the economy has been doing since Bernanke has been in charge?

Think for yourself's picture

as an aside (relevant to Leva's post upthread), this is the best way to deal with a troll: reply first to his post so he doesn't hijack the thread, but ignore him and keep the discussion going. Bravo, NewThor.

Xkwisetly Paneful's picture

Excellent material.

The central bankers have been manipulating markets since dirt turned brown,

not newor novel.

very comical reading the academic idiots try and prove the tail wags the dog though.

Pladizow's picture

Approximate Avg annual 10 year return:

Microsoft = 0%, Berkshire = 5%, Gold = 18%

BigJim's picture

 The central bankers have been manipulating markets since dirt turned brown

So, central banks have been around as long as dirt has been brown, have they?

I think it's great historical insights like this that have built your reputation at Zerohedge to where it stands today.

Xkwisetly Paneful's picture


Come on, even you can do better!

and before the central banks it was the governments and the local banks,

and before that it was the guy with the most skin in the game,

It is hilarious, what are you  23yo or something where so fervently believe somehow life is a novel experience and everything was just invented yesterday?

Killtruck's picture

After reading your posts for the last two days, I have become suspicious of the fact that you may be a douche.

Vagabond's picture

Nobody, and I haven't heard anyone talk about it either.  Especially on these economics blogs.

Max Fischer's picture



As a word of caution to all PSLV holders, I would strongly urge you to read the latest 40-F.  PSLV has been marketed as an alternative to SLV for those investors that want exposure to silver and want the "supposed" extra security of knowing that your "shares"/units are redeemable for actual physical silver if you desire. If you read the 40-F, you'll understand that those supposed differences you've been led to believe about PSLV and SLV are really not true.    


Sprott markets his PSLV has being significantly different than SLV, in that the investor is assured that he will always be able to redeem his units for actual physical ounces. But on page 25, Sprott clearly says he has the right to deny your redemption request:

The Manager, on behalf of the Trust, may suspend the right of unitholders to request a redemption of their units or postpone the date of delivery or payment of the redemption proceeds......

Also, assuming Sprott does not deny your request for redemption, there is a minimum amount that you're able to redeem that's beyond the reach of most retail investors. Page 21:

Redemption requests must be for amounts that are at least equivalent to the value of ten London Good Delivery bars or an integral multiple of one bar in excess thereof, plus applicable expenses. A "London Good Delivery bar" weighs between 750 and 1,100 troy ounces (approximately 23 to 34 kilograms) and usually are approximately 1,000 troy ounces. 

So, the minimum amount an investor can redeem for silver bullion is 10 X 1,000oz bars.  

10,000 ounces @ $29.27/oz (May 9th) = $292,700

$292,700 + storage fees, security fees, transportation fees and any other expenses 

In other words, unless you've got a minimum of ~$300,000 invested in PSLV you actually CANNOT redeem your units/shares for silver bullion.  The overwhelming majority of "retail investors" will not own $300,000 worth of PSLV.

Also, isn't weird that the crescendo of hyperbole and propaganda regarding a shortage of physical silver in the PM marketplace seemed to reach a peak around the months that PSLV commenced trading?  Now, 18 months later with NONE of the bullshit propaganda proving true and Sprott's personal bank account $25M richer, we don't hear the carnival barking as much.....

*LOL* Coincidence? 



Paul Atreides's picture

You must get paid by the word...

Tsunami Wave's picture

Aren't you the one who also said, "It only costs $5 to dig out of the ground?"

fuu's picture



Fri, 02/25/2011 - 17:34 | Math Man

But it still remains below Monday's peak.

Face it.  Silver is over.

It ran 70% in six months, but it only costs $5 bucks to dig it out the ground.

It'll be back below $20 soon enough.

prole's picture

He may still be right! When silver hits 20 on its way south, we will all have a lot of crow to eat.

MathMan it you are reading this ... don't forget your old login, your "gloating it in their faces" moment may be right around the corner...

BigJim's picture

His puts expired out of the money years ago. Why do you think his various incarnations have all been so bitter?

BigJim's picture

 As a word of caution to all PSLV holders, I would strongly urge you to read the latest 40-F.  PSLV has been marketed as an alternative to SLV for those investors that want exposure to silver and want the "supposed" extra security of knowing that your "shares"/units are redeemable for actual physical silver if you desire. If you read the 40-F, you'll understand that those supposed differences you've been led to believe about PSLV and SLV are really not true.

So tell us Max, and tell us true - who told you to post this? Because judging from your past form - ie, appalling research, mendacious sophistries, and outright fabrications - you didn't chance upon this buried-away nugget all on your lonesome.

StychoKiller's picture

What, no critique of SLV?  If one didn't know better, one would think you're playing favorites! </sarc>

Max Fischer's picture



This was a weird interview.  

Why did Wapner feel the need to "advertise" what Sprott's funds have returned over the past several years?  If he was going to say it, it should have been said when Sprott joined the conversation. Instead, it was mentioned a few minutes later, as if Wapner had forgotten, but was obligated to mention it. The most recent Sprott investment, PSLV, has been a huge loser for most people.  Given that Sprott pumped PSLV on CNBC many times in 2011, why didn't Wapner press him on its performance?    

At the end, the pony-tailed freak obviously gave Sprott another "advertising" question by asking him if there were any alternatives to SLV to get silver exposure. WTF?  Are you serious?  Is this an interview or an infomercial?

Where are the REAL questions like asking Sprott why his dramatic claims of a silver shortage never materialized?  Or asking him why he blind-sided his investors with a PSLV secondary after he safely sold tens of millions of his own shares in the months prior?  If Sportt was truly interested in protecting the retail investor, why did he pull the rug out from underneath them with the secondary? The vast majority of people who own PSLV are underwater.....big time. 


SRSrocco's picture

Max Fischer.... its nice to see someone who can think for themself.  Unfortunately, the thinking is SUBPAR at best.  I would imagine that in a few years time your words will seem very SILLY to say the least.  Anyhow, always entertaining to read your rubbish.

all the best


Paul Atreides's picture

As I mentioned the other day we are getting closer to the SHTF moment which means all trolls, propaganda, rhetoric and divisionary tactics will have their volume set to 11 in the coming weeks.

Get long physical (like we haven't all ready) and keep stacking on dips. Get prepared physically, mentally and spiritually because the descent is going to be horrifying.

Everybodys All American's picture

Out of curiousity what event do you think will be the tipping point?

gmrpeabody's picture

The finale of American Idol should do it.

cbxer55's picture


Does anyone really watch that stupidity?



Paul Atreides's picture

It seems to all be coming to a head late June early July but there are way too many geo-poltical and financial events to know for sure. I have some theories but they are only that and I need more fact before posting them.

I do know for a fact that DHS and other Security agencies are preparing for an imminent US civil war. I am also pretty sure TPTB need to stop Ron Paul from getting to the Republican Convention in August otherwise there is no stopping him, his army of delegates and supporters from taking down Obama and the Federal Reserve. That is the key to all the power and all the corruption and it will not be allowed to happen in one way or another.

Tijuana Donkey Show's picture

No one in America is ready for a civil war. They are waiting for the plebs to revolt

Tsunami Wave's picture

Let the haters hate.  Frankly, I don't get how people can be so angry at other people stacking silver or gold.  Maxine Fischer doesn't need to do it, and no one is forcing her to buy these metals, or let alone go into stocks or bonds.  If we lose... then we lose.  If we win.. then we win.  Plain and simple.

Shizzmoney's picture

Get silver.

And if you can't buy silver, buy seeds, water, and guns.


tocointhephrase's picture

Seeds that reproduce seeds that is, not like monsanto (scum)!

tocointhephrase's picture

Hit save once and buy physical silver bullion 1oz coins (personal reminder) 

Bay of Pigs's picture

Why answer your questions when they have been answered time and time again?

You need some fucking help Max/RNR/Libertarians for...and whoever else you have been here.

You have ZHMD (ZeroHedge Multipersonality Disorder) 

TWSceptic's picture

Because they don't get paid for doing the interview, the trade is to mention their business. That offer comes from CNBC, are you saying Sprott should decline that? Are you serious?

Regarding silver shortage, give it some time. Patience seems to be your biggest weakness.

Chuck Walla's picture

Sprott, buffoon. I can see the similarities.


Jeebus, Komrad Krugman!  Are you out of toilets to clean at the Times buliding so soon?

Al Gorerhythm's picture

You two (you and your current single fellow supporter) at least think like Greeks. (in reference to your handle.) I wonder if you have the capacity to consider the reason why the "for and against" ratio is not in your favor?

Peter Pan's picture

Levadiakos, too bad they don't give Nobel Prizes to witty people. You would still be winning it ten years after dying. LOL. Give us a break.

flying dutchmen's picture

the funds is so focused on gold and silver -- and we all know that it does not go up forever.    AAPL  has done so much better -- I respect sprott opinion, but most of his funds have done 0% the last 5 years..

Al Gorerhythm's picture

Dutchy, ask yourself the question; Will apple last forever? and the concomitant; In this environment?

earleflorida's picture

AAPL will be forced into[?] hiatus when *[FB] Facebook's ipo goes public ~ 5/18/12 [fri]. Day trader's & Fund Managers will have a new revenue [field day] source with this baby. Should be fun to watch for months. Android [btw] is sucking the life out of iPhone, and iTV just a far-off pipe dream pumped-up with iJuice steroids is showing fatigue syndrome [imo].

Physical gold & silver will be a great buying opportunity at $1.4k & $26 respectfully [imo].

The EU is unraveling fast, and when Greece finally says ta`leme,... ya, antio!

thanks tyler 

SRSrocco's picture


There is something indeed very strange taking place in the SLV & GLD CHARTS when we use the ACCUM/LINE.  As the price of both gold and silver continue to get clobbered, the Accumulation/Distribution line continues in an exponential trend higher.  Even though I am not one to focus on Technical Analysis, I have never seen such a DIVERGENCE in anything as is taking place in the 6 month GLD & SLV CHART

GLD CHART - http://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=0&mn=6&dy=0&id=p03917058844

SLV CHART - http://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=0&mn=6&dy=0&id=p69662011069

If you look at those, than take a look at copper and JP MORGAN as a comparison... you will see something very interesting.

COPPER - http://stockcharts.com/h-sc/ui?s=$COPPER&p=D&yr=0&mn=6&dy=0&id=p77724452310

JP MORGAN - http://stockcharts.com/h-sc/ui?s=JPM&p=D&yr=0&mn=6&dy=0&id=p65446590616

The BLACK LINE in the charts is the ACCUM/DIST LINE.

Accumulation Distribution

Accumulation Distribution tracks the relationship between price and volume and acts as a leading indicator of price movements. It provides a measure of the commitment of bulls and bears to the market and is used to detect divergences between volume and price action - signs that a trend is weakening.


xela2200's picture

Probably means that arbitragers are not doing their job, and, if so, that is really really scary.

sgt_doom's picture

I think Buffett missed it 'cause he's too busy avoiding paying his company's taxes (still in tax court battling on that) while play acting as a self-described and so-called "tax justice advocate" ? ???

Gates missed it 'cause he's too busy trying to privatize all the schools while figuring out how to profit from his numerous schemes to "stop" global climate change.

I think that covers it.....

LawsofPhysics's picture

How is PSLV doing Mr. Sprott?  Yeah I'd be pissed to, but he is correct.  Backing up the truck now.

SilverTree's picture

I am selling some of my guitars and such for dry powder. October seems to be lift-off time.



Turd in Backwardation



Levadiakos's picture

OK Good. I transmit to Vladimir

Chuck Walla's picture

OK Good. I transmit to Vladimir


Komrade, You are gud boy!  As always, have nice day!

LasVegasDave's picture

Turd is leading his poor followers off a cliff

But at least his buddy Andy Macguire (and the Turd?) is making a few bucks off it.

Turds army?

Beat the cartel at ther own game?