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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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Wed, 05/09/2012 - 15:35 | 2411029 SilverTree
SilverTree's picture

Sprott is the man.

Wed, 05/09/2012 - 15:45 | 2411039 Colombian Gringo
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.

Wed, 05/09/2012 - 15:46 | 2411064 Levadiakos
Levadiakos's picture

Sprott, buffoon. I can see the similarities.

Wed, 05/09/2012 - 15:53 | 2411109 NewThor
NewThor's picture

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

Wed, 05/09/2012 - 16:29 | 2411231 SilverTree
SilverTree's picture

Hard not to

Wed, 05/09/2012 - 16:40 | 2411264 Think for yourself
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.

Wed, 05/09/2012 - 17:31 | 2411402 Xkwisetly Paneful
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.

Wed, 05/09/2012 - 18:32 | 2411545 Pladizow
Pladizow's picture

Approximate Avg annual 10 year return:

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

Wed, 05/09/2012 - 20:56 | 2411843 BigJim
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.

Wed, 05/09/2012 - 22:08 | 2411978 Xkwisetly Paneful
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?

Thu, 05/10/2012 - 07:31 | 2412578 Killtruck
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.

Wed, 05/09/2012 - 16:32 | 2411244 Vagabond
Vagabond's picture

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

Wed, 05/09/2012 - 18:03 | 2411443 Max Fischer
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? 



Wed, 05/09/2012 - 18:35 | 2411554 fuu
fuu's picture

Whatever MathMan.

Wed, 05/09/2012 - 18:35 | 2411558 Paul Atreides
Paul Atreides's picture

You must get paid by the word...

Wed, 05/09/2012 - 18:44 | 2411574 Tsunami Wave
Tsunami Wave's picture

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

Wed, 05/09/2012 - 19:25 | 2411650 fuu
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.

Wed, 05/09/2012 - 21:41 | 2411928 prole
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...

Wed, 05/09/2012 - 21:56 | 2411961 BigJim
BigJim's picture

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

Wed, 05/09/2012 - 21:26 | 2411898 BigJim
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.

Thu, 05/10/2012 - 03:27 | 2412420 StychoKiller
StychoKiller's picture

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

Wed, 05/09/2012 - 16:40 | 2411246 Max Fischer
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. 


Wed, 05/09/2012 - 16:44 | 2411274 SRSrocco
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


Wed, 05/09/2012 - 16:59 | 2411320 Paul Atreides
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.

Wed, 05/09/2012 - 18:14 | 2411508 Everybodys All ...
Everybodys All American's picture

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

Wed, 05/09/2012 - 18:37 | 2411559 gmrpeabody
gmrpeabody's picture

The finale of American Idol should do it.

Wed, 05/09/2012 - 21:09 | 2411870 cbxer55
cbxer55's picture


Does anyone really watch that stupidity?



Wed, 05/09/2012 - 19:17 | 2411620 Paul Atreides
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.

Wed, 05/09/2012 - 23:12 | 2412104 Tijuana Donkey Show
Tijuana Donkey Show's picture

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

Wed, 05/09/2012 - 18:30 | 2411544 Tsunami Wave
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.

Wed, 05/09/2012 - 19:05 | 2411626 Shizzmoney
Shizzmoney's picture

Get silver.

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


Thu, 05/10/2012 - 03:12 | 2412404 tocointhephrase
tocointhephrase's picture

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

Thu, 05/10/2012 - 03:13 | 2412405 tocointhephrase
tocointhephrase's picture

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

Wed, 05/09/2012 - 16:44 | 2411279 Bay of Pigs
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) 

Wed, 05/09/2012 - 16:51 | 2411290 TWSceptic
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.

Wed, 05/09/2012 - 16:49 | 2411289 Chuck Walla
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?

Wed, 05/09/2012 - 16:54 | 2411312 Al Gorerhythm
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?

Wed, 05/09/2012 - 18:57 | 2411605 Peter Pan
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.

Wed, 05/09/2012 - 16:09 | 2411177 flying dutchmen
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..

Wed, 05/09/2012 - 16:59 | 2411333 Al Gorerhythm
Al Gorerhythm's picture

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

Thu, 05/10/2012 - 10:39 | 2413086 earleflorida
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 

Wed, 05/09/2012 - 16:10 | 2411183 SRSrocco
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



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

COPPER -$COPPER&p=D&yr=0&mn=6&dy=0&id=p77724452310


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.


Wed, 05/09/2012 - 17:00 | 2411332 xela2200
xela2200's picture

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

Wed, 05/09/2012 - 16:33 | 2411242 sgt_doom
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.....

Wed, 05/09/2012 - 15:36 | 2411036 LawsofPhysics
LawsofPhysics's picture

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

Wed, 05/09/2012 - 15:41 | 2411050 resurger
resurger's picture


Wed, 05/09/2012 - 15:47 | 2411068 SilverTree
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

Wed, 05/09/2012 - 15:48 | 2411073 Levadiakos
Levadiakos's picture

OK Good. I transmit to Vladimir

Wed, 05/09/2012 - 16:45 | 2411284 Chuck Walla
Chuck Walla's picture

OK Good. I transmit to Vladimir


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

Wed, 05/09/2012 - 16:02 | 2411158 LasVegasDave
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?


Wed, 05/09/2012 - 16:22 | 2411211 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

Andrew Maguire is just an invention by Gata - there was no BS car accident, and he never worked for a bullion bank. Its just BS. Turd is also full of shit.

Wed, 05/09/2012 - 16:51 | 2411296 Bay of Pigs
Bay of Pigs's picture

Speaking of buffoons...

Wed, 05/09/2012 - 16:26 | 2411227 SRSrocco
SRSrocco's picture

LasVegasDave.... I can see that you think printing money into oblivion will have no consequences.  The US TREASURY MARKET is the biggest bubble in history and we have to continue to listen and read NITWITS who think they are COOL to be COMPLETELY INVESTED in the FIAT MONETARY PONZI SCHEME.

GOD BLESS THE MORONS, NITWITS and GADFLIES.... makes life interesting indeed.

Wed, 05/09/2012 - 16:35 | 2411248 LasVegasDave
LasVegasDave's picture

Wrong.  It will have enormous consequences, and you should stack and keep stacking (as Turd says.)

But advising newbies, pie makers, grandmas and baby changers to "trade" PMs in a manipulated market is just the height of irresponsability.

But WTF... at least you can watch some cool music videos while you bash the Evil empire


Wed, 05/09/2012 - 16:52 | 2411302 LasVegasDave
LasVegasDave's picture

a disclaimer?


What the large print giveth, the small print taketh away

-Tom Waits

Thu, 05/10/2012 - 03:21 | 2412411 tocointhephrase
tocointhephrase's picture

Who advised Grandma and Pops to "Trade", Invest Nanna, Invest! For the long term, for the future! Nite nite Dollar. I dont need a dollar, dollar, dollars gonna bleed! 

Wed, 05/09/2012 - 16:52 | 2411300 LawsofPhysics
LawsofPhysics's picture

I don't know too many "newbies, pie makers, grandmas and baby changers" that trade (or take delivery) of PMs.  Totally stupid comment on a site started by and dedicated to traders.

Anyway.  PMs are not the largest part of my diverse portfolio, but physical assets (some revenue generating) are, and in general these are long term plays that I always find successful if you are a net buyer when everyone else has been selling and visa versa.  Running with the herd is a zero-sum game, staying ahead of the herd is a different story.

FYI- all economies are local, especially when possession becomes 100% of the law.

Wed, 05/09/2012 - 16:54 | 2411318 LasVegasDave
LasVegasDave's picture

then go visit Turd's juevinile day care site

If it isnt some yokel cooing over her baby's first fart, its douchebag hipsters posting pink floyd videos and cursing "the evil empire"

good fun, all.  But a serious site for information?  I think not.


Wed, 05/09/2012 - 17:01 | 2411334 LawsofPhysics
LawsofPhysics's picture

I do my own homework, don't really know who "Turd" is or really care.  Try not to be so insulting, it doesn't help your credibility.

Wed, 05/09/2012 - 17:02 | 2411337 ArrestBobRubin
ArrestBobRubin's picture

By the same token Dave, are we thinking that Las Vegas is a serious site for information either?

Steady there big fella....

Wed, 05/09/2012 - 21:04 | 2411860 brettd
brettd's picture

Spot on.  In many respects, the law has fallen apart---from foreclosures/eviction law to GM/Chrystler bond fleecing.

I'm not sure if the gang in charge now couid get away with expropriation...but it won't surprise me if they try.

Wed, 05/09/2012 - 16:33 | 2411245 SilverTree
SilverTree's picture

Suggesting that people focus on accumulating physical is not leading followers off a cliff.

Wed, 05/09/2012 - 16:36 | 2411250 grey7beard
grey7beard's picture

>> Turd is leading his poor followers off a cliff

It's not about his followers, it's about  The Turd.  Page hits, advertising, donations, begging for dollars.  Turd aspires to be another Beck.

Wed, 05/09/2012 - 17:24 | 2411365 ArrestBobRubin
ArrestBobRubin's picture

Word is his "moderator" ripped the guts out of the joint months back by chasing off nearly all his founding supporters.... for the stated goal of making more money. Big contributors were waiting in the wings you see and were demanding she level the place. This is known as Epic Fail.

Turd has "Moderator Jane", aka Stephanie, to thank. She came into Turd's life and sucked the oxygen right out of his site. Man has it slipped from the early days. It's pretty shocking to see how low the level of discourse has dropped.

'Course it was possible to actually make money in metals and miners back in the early days of TFMR. No wonder so many people were happy :-)

Wed, 05/09/2012 - 18:03 | 2411484 Biosci
Biosci's picture

Indeed.  TA is awesome in a secular bull market.

Wed, 05/09/2012 - 18:05 | 2411487 Bay of Pigs
Bay of Pigs's picture

Funny you mention that Bob. She was the one who banned me and then trashed me on the blog when I couldn't defend myself. I guess delete, ban, and censor are par for the course over there now? 

That's pretty weak coming from a guy who cut his teeth right here on ZH/Fight Club. 

Wed, 05/09/2012 - 18:58 | 2411609 gmrpeabody
gmrpeabody's picture

Used to love the Turd..., then it went to his head. Lost me early on.

Wed, 05/09/2012 - 21:34 | 2411899 Haole
Haole's picture

You were banned too?


I've been banned from quite a few web portals in my time and have always considered it a compliment to be ousted by specimens like Stephanie actually... ;)

On topic,  buying into PHS.U is one of the biggest, mis-timed mistakes of my "investing" life thus far.  Hope I can sing a different song some day as I'm not about to realize my loss.  The name "devil's metal" could not be more apt, especially given the astounding manipulation it's subject to.

Wed, 05/09/2012 - 21:36 | 2411919 Bay of Pigs
Bay of Pigs's picture

Yes, and what was interesting to me is that I was #1 on his infamous hat tip leaderboard when she booted me. LOL.


Wed, 05/09/2012 - 21:42 | 2411933 Haole
Haole's picture

Nothing better than retiring, or being retired, at the top of one's game.  ;)

We're all very lucky to have a place like ZH.  It cannot and will not be riveled.

Wed, 05/09/2012 - 18:47 | 2411581 grey7beard
grey7beard's picture

>> Word is his "moderator" ripped the guts out of the joint months back

Thanks for the insight.  I never thought Turd had what it takes to go far with that site.  He is certainly a tireless self promoter who can put together a decent groupie following.  His Achillies Heal, IMO, was his inability to keep, or severly limit, his personal political opinions and axe grinding out of the site.  Partisan garbage is ok for the troops, but not the big cheese.  As soon as Turd takes a hard partisan side, he alienates half his readers.  There is a reason you don't discuss politics or reliegon in your professional life.  I sent T a couple of personal emails alerting him to how unprofessional it was and how it would damage his site, but he can't help himself.

I never was particularly enamored with the place, but surprising to me, there were numberious insightful people who took up residence.  Over a brief time I see most have gone by the way and I haven't had the urge to stop in for a long time. 

Wed, 05/09/2012 - 19:59 | 2411716 Bring the Gold
Bring the Gold's picture

Within days of my joining his site he put up an opinion on a political happening that was so egregious I ended my pariticipation. He also simultaneously constrained discussion of said topic to insure that only his front page viewpoint was allowed. All other commentary was sent to a small specific "sub-basement" of the forum. Killed his credibility instantly in my mind.

Wed, 05/09/2012 - 22:54 | 2412077 Bring the Gold
Bring the Gold's picture

You can't really blame Stephanie for what happened. Blame belongs on Turd's shoulders. Its his site, the buck stops with him.

Thu, 05/10/2012 - 08:42 | 2412709 Zero Govt
Zero Govt's picture

i had a few run-ins with 'Socialist Stephanie' ...on the Vets Day she censored me for "not respecting" the Vets (ie. being anti illgeal foreign wars) and then posted her own leftie anti-war diatribe

but apart from a half dozen other sound reasons for leaving Turdville my main issue was his trading calls were consistently crap, not the "talent for reading charts" he proclaims

Wed, 05/09/2012 - 16:25 | 2411219 Gringo Viejo
Gringo Viejo's picture

Silver Tree: Thx 4 posting Turd's piece, as this has been my assumption as well. The current paper short position in silver is completely untenable at this point in time. This is the last chopper out of Saigon for the commercials.

Wed, 05/09/2012 - 17:10 | 2411349 Al Gorerhythm
Al Gorerhythm's picture

Good luck on that call. I've been hopeful of that for the last 8 years.

Wed, 05/09/2012 - 17:38 | 2411425 Gringo Viejo
Gringo Viejo's picture

Al: I'm in my 60s and have followed the silver market since the "Hunt Brother's Corner" in 1980. Silver is an INDESPENSABLE TECH (not industrial) metal and the PTB have sought to depress its price to keep production inflation at a minimum. It is FAR more valuable than gold, hence the gargantuan effort to minimize its price. Get physical brother and hold on to it for dear life!

Wed, 05/09/2012 - 15:40 | 2411047 resurger
resurger's picture

The Three Coots will never be missed ...

Wed, 05/09/2012 - 17:15 | 2411355 Seer
Seer's picture

Yeah, but offspring... that's how they replicate themselves!  More for yet another generation to do battle with.

Wed, 05/09/2012 - 15:41 | 2411048 Gloomygus
Gloomygus's picture

The world's first central bank originated in Sweden in 1668 - the bank, per Wikipedia:

"collapsed as a result of the issuing of too many notes without the necessary collateral. Palmstruch, who was considered responsible for the bank's losses, was condemned to death"

Eventually the Swede's central bank was resurrected and renamed - it again began issuing paper "certificates" which eventually were subject to counterfeiting - so,

"To prevent forgeries it was decided that the Riksbank should produce its own paper for bank-notes and a paper-mill, Tumba Bruk, was founded in Tumba, on the outskirts of Stockholm."

Exactly as in the US, the Swede paper was supposed to be convertible to gold on demand - however, in 1971 Nixon abandoned gold convertability in the US.  I suspect Nixon was first and all other CBs followed suit.  

Per Wikipedia:

"The Swedish currency was until 1931 backed by gold and the paper-certificates could be exchanged for gold coins. The bank was obligated until 1975 by the Swedish constitution to exchange the paper-certificates for gold, but in 1931 a specialized temporary law was written to free the bank from this obligation. This law was renewed every year until the new constitution was ratified 1975 which split the bank from the government into a stand-alone organization not obligated to exchange notes for gold."  

Our current Fed (there have been three prior "Feds" created and destroyed in the United State's 230 year lifespan) has been a separate, privately owned entity from its inception in 1913.  It has gradually thrown off the convertibility (or collateralization of) its paper notes.  How did it turn its gold-backed paper (where a holder could literally trade the note for gold) into air-backed paper?

JFK had began, 5 months prior to his death, issuing silver certificates issued by the treasury, backed by silver in the treasury, and convertible on demand into silver itself.  The same order (Exec. Order 11110) that allowed the treasury to use the President's power to issue such certificates under a statute from the 1930's also stripped the IRS's ability to tax such silver exchanges (the IRS is also a private entity created in 1913 at the same time as the Fed - by taxing income and transactions, payable only with the Fed's paper, people are kept within the Fed's paper system).  With JFK offering silver on demand for US notes, the Fed's paper unbacked by anything had a competitor - an insurmountable competitor.  This the Fed could not abide as it would very quickly die when the public recognized the distinction between the notes and looked more closely at the whole Fed arrangment.  

Regarding the "arrangement," the JFK certificates were not accompanied by the interest that has to be paid on every Fed note - the Fed orders up treasury notes and then lends the money just printed by the treasury back to the treasury at interest (by buying United States bonds and returning to the US its own fresh paper).  The interest on the bonds is a constant slow drip of wealth away from the nation to the Fed's private owners.

Of course, JFK didn't live, but you all have held Kennedy silver dollars in your hands.  But no Johnson, Nixon, et. al. silver dollars - in fact the first thing Nixon did after Johnson declined to run for a second tern was to chuck the last vestiges of the gold std - all the gold std is is backing for the paper with something of real value (collateral - see why the first Swede bank collapsed above).  Without a std, you can print as much of the stuff as you want.  

And who is printing literally trillions of electronic dollars, currently sequestered in primary dealer's reserve accounts?  You can only issue so much paper before folks begin to wonder about the value of the paper in their pocket.  A paper-issuer might get a little desparate when forced to print and print just to run in place.

Returning to the counterfieting issue that confronted Sweden's model central bank - we also have a captive paper printer (Crane & Co. - after 9-11 Crane bought Tumba Bruk, see above, which prints Euros and probably everything else).  We also have an agency that serves our Fed and that was originally created to protect against counterfeiting - the Secret Service - it also does some other stuff but I'm no longer clear on what they do/have done.

I believe that in addition to Rahm Emmanuel, the President's former Chief of Staff, the Secret Service is also the source of the Red Cross email to be prepared regarding the Chicago NATO summit.

Wed, 05/09/2012 - 15:59 | 2411142 RafterManFMJ
RafterManFMJ's picture

Nice post. I'll give you the cliff notes version: If you don't have it (gold) in your physical position then you don't own it.

Wed, 05/09/2012 - 17:06 | 2411342 newworldorder
newworldorder's picture

RE: Gloomygus

Great post. Unfortunatly most people would rather read cliff notes rather than activate their brain cells or critical thinking skills.

While one can argue that the Gold Standard was a financial constraining tool, it did preserve to concept of honest money earned by human effort in the real world. The Swedish Central bank  history you described was also about honest money and their attempt to get around their honest money problems.

The fact remains that the unlawfull wedding of banksters and politicians was orchastrated precisely to subvert honest money, by expanding fiat money to whatever level was needed by politicians at any time and for whatever reason, without having to seek approval from the electorate. The American population does not understand this. This is the reason that the FED was created and has survived to this day. It is also the reason that it will eventually jump off the financial solvency cliff and take all of us with it.

Wed, 05/09/2012 - 15:43 | 2411053 q99x2
q99x2's picture

The price of Gold will always be one notch above the average exceptable purchase price.

That is a quote from Me.

The rest of the quote goes like this: and I'll always be one notch below.

Wed, 05/09/2012 - 15:46 | 2411061 kill switch
kill switch's picture

For America, this is appropriate!! Me thinks....

This is the end
Beautiful friend
This is the end
My only friend, the end
Of our elaborate plans, the end
Of everything that stands, the end
No safety or surprise, the end
I'll never look into your eyes...again
Can you picture what will be
So limitless and free
Desperately in need...of some...stranger's hand
In a...desperate land
Lost in a Roman...wilderness of pain
And all the children are insane
All the children are insane
Waiting for the summer rain, yeah

Wed, 05/09/2012 - 15:46 | 2411069 RWR
RWR's picture












Wed, 05/09/2012 - 15:49 | 2411082 Bam_Man
Bam_Man's picture

I am shocked - shocked to hear that there is manipulation going on!

Wed, 05/09/2012 - 15:56 | 2411128 Bansters-in-my-...
Bansters-in-my- feces's picture

Your "shocked"

I'm "Pissed".

Thu, 05/10/2012 - 03:50 | 2412431 StychoKiller
StychoKiller's picture

Wait'll you find out that prisoners (serving time even!) are getting tax refunds as well.

Wed, 05/09/2012 - 15:50 | 2411095 Kaiser Sousa
Kaiser Sousa's picture

Bitch ass CNBC....
Riding Warren Buffons jock all fucking week...
Yeah, the US bank r n great shape Mr. Oracle of cock suckers.....
Buy more stocks....yeah, i'll get right on that...NOT!!!!
Silver my Bitchez......

Wed, 05/09/2012 - 16:38 | 2411259 franzpick
franzpick's picture

The Oriface of Omaha instructs the media not to mention his ill-conceived silver sale years ago.

Wed, 05/09/2012 - 19:49 | 2411689 ArrestBobRubin
ArrestBobRubin's picture

Well Kaiser you're right and they have the ratings to show for it :-)

CNBS: whatta buncha LOSERS!

Wed, 05/09/2012 - 15:51 | 2411098 TheSilverJournal
TheSilverJournal's picture

You can fondle gold AND it will put out a bigger return that Warren Buffett can give least it has for the last decade.

Now that fiscal policy is the worst ever, the return on gold should be the best ever.

Wed, 05/09/2012 - 15:52 | 2411100 Pretorian
Pretorian's picture

True. How else is possible for Goldman to get every trading day  with profit last year 1q.

Wed, 05/09/2012 - 15:52 | 2411104 GrinandBearit
GrinandBearit's picture

With a few choice words Sprott destroyed Buffett, Munger and Gates right there.

CNBC should get Sprott, Ron Paul and :::insert fav gold bug here::: in a debate against Warren, Munger and Gates.  Let them debate for 2 hours.  The ratings would probably be off the charts.

Wed, 05/09/2012 - 15:56 | 2411126 NotApplicable
NotApplicable's picture

With Gates so much it doesn't matter, as he didn't make his money by leveraging paper in the casino.

But yeah, Warren and Charlie, well, they can simply...

Suck it up!

Wed, 05/09/2012 - 16:14 | 2411192 Kaiser Sousa
Kaiser Sousa's picture

fuck can one b acredited a genius and deny what real money is....he's a bitch made REAL money hater too...

fuck Microcock





Wed, 05/09/2012 - 16:41 | 2411269 sgt_doom
sgt_doom's picture

Whoever called Gates a "genius" for chrissakes?

He got that DOS monopoly from his mommy's friend at IBM --- then Paterson copied MS-DOS directly from Gary Kildall's CP/M OS --- and his original financing for Micro$oft came from his uncle, who was the VP at First Interstate Bank.

Nothing genius there, unless you're referring to his wifey, Melinda, who was responsible for creating that miserable failure of a user interface, Uncle Bob?

See Billionaires' Ball, by Linda McQuaig and Neil Brooks:

Wed, 05/09/2012 - 15:52 | 2411105 Lost Wages
Lost Wages's picture

Sprott handled that interview very well. Better than a lot of silver vigilantes would have. Viva silver!

Wed, 05/09/2012 - 16:02 | 2411146 capitallosses
capitallosses's picture

I'm sewing a gold coin into my wife's Zero Hedge bikini panties in honor of Munger! Then when I say I know there's gold in there, I'll be doubly right!

Wed, 05/09/2012 - 16:41 | 2411266 Sudden Debt
Sudden Debt's picture

What does the credo say on her panties?
"on a long enough timeline, your sexlife drops to zero"?

Or her bra
"on a long enough timeline, these the ground"?


Wed, 05/09/2012 - 20:50 | 2411830 capitallosses
capitallosses's picture

"Warning Contains Zero Hedge"

Buy yours here:



Wed, 05/09/2012 - 16:43 | 2411277 junkyardjack
junkyardjack's picture

Be careful the mail man doesn't find it

Thu, 05/10/2012 - 04:21 | 2412445 capitallosses
capitallosses's picture

I've already warned that ugly bastard while cleaning my guns.

Wed, 05/09/2012 - 23:04 | 2411896 cbxer55
cbxer55's picture

That ain't no bikini bottom. its a thong, Not enough material there to sew a sewing needle into.

Thu, 05/10/2012 - 15:14 | 2414263 mkkby
mkkby's picture

Not any more.  It was the first thing her customers noticed last night.

Wed, 05/09/2012 - 16:01 | 2411153 Shizzmoney
Shizzmoney's picture

Ms. Ahuja (Squawk Box Producer) modestly chalked it up to her press credentials.

“I felt very fortunate to be calling from CNBC, a platform that people trust and recognize,” she said, noting that Squawk Box is “watched in the White House.”

And.....that explains everything.

Wed, 05/09/2012 - 16:01 | 2411155 ArrestBobRubin
ArrestBobRubin's picture

Ahh, the PTB butt-boy team of Whorin' Muppet, Shill Hates, and Munger de Bung-er... how splendid!

OF COURSE Admiral Sprott shouldn't respect their "opinions"! Do you?

Wed, 05/09/2012 - 16:03 | 2411156 flying dutchmen
flying dutchmen's picture

Sprott losing some of his equity... SII is way down and his funds assets is way to focused on gold and silver..... they are unproductive assets.....  Buffet has a shit load more cash than sprott..  commodoties are going to come down pretty hard in the next couple of years......... is the market manipulated -- you bet......

Wed, 05/09/2012 - 16:04 | 2411161 devo
devo's picture

Where's the second half of the interview?

Wed, 05/09/2012 - 16:06 | 2411170 jmcadg
jmcadg's picture

This clip reminds me of the clips a few years back where Schiff had a long haired idiot laughing when he said that housing was going to crash.

It's like history repeating itself.

Eric - you don't have to justify yourself to these goons.


Wed, 05/09/2012 - 17:29 | 2411398 Seer
Seer's picture

Yeah, I was thinking the same thing.

Should be mandatory for ANYONE making such absolute statements to be held accountable.  Those fucking idiots (with special honors going to that one older clown [I try to purge his name and image out of my head- don't want the mind police to come nab me for thinking certain thoughts]), well, town squares and all...

Wed, 05/09/2012 - 21:15 | 2411883 BigJim
BigJim's picture

 This clip reminds me of the clips a few years back where Schiff had a long haired idiot laughing when he said that housing was going to crash.

Here he is vs. Art Laffer...

Apart from his prediction of interest rates having to rise (I guess he didn't foresee the degree to which Wall Street had co-opted the levers of power), Schiff was spot-on

Wed, 05/09/2012 - 16:10 | 2411185 jayman21
jayman21's picture

So happy that I do not have to watch this crap anymore and you guys put up the fun stuff.  thanks ZH.

Wed, 05/09/2012 - 16:12 | 2411188 Bastiat009
Bastiat009's picture

Ok, gold will rise, eventually, but first it will crash. All those people have adjusted their prediction. First it will crash then it will rise, later, maybe, one day, in the end ... 

Wed, 05/09/2012 - 16:13 | 2411193 jomama
jomama's picture

i'm just going to leave this here.

Wed, 05/09/2012 - 16:15 | 2411197 Nid
Nid's picture

That bald, pony tailed doosh at the end looks like a big fucking sissy.

Wed, 05/09/2012 - 16:15 | 2411200 Canadian Dirtlump
Canadian Dirtlump's picture

sprott will have the last laugh but it will be a dance between now and then.

Wed, 05/09/2012 - 16:25 | 2411222 Gloomygus
Gloomygus's picture

Compounding upon my post below, and our enigmatic Chief Executive, who is holding a summit of our NATO military allies in his "home" town, where his former Chief of Staff is miraculously now Mayor, in two weeks:

Do you see the strong family resemblence amongst the Thai monarchy?

And in the "mad scramble" of Central Banks to buu gold, Thailand's acquisitions lead:

I am not going anywhere near Chicago over May 21-22 - alas, I live nearby. Hopefully, this is all conjecture and speculation, and all will be well (as all has been recently)

Wed, 05/09/2012 - 16:42 | 2411270 junkyardjack
junkyardjack's picture

Compare bank accounts bitchez

Wed, 05/09/2012 - 17:05 | 2411341 Barometer
Barometer's picture

In the FACE Warren !! And these returns have been made by buying something real, not from writing insurance policies that you never intend to fulfill or from selling puts without any collateral. Fuck you.

Wed, 05/09/2012 - 18:08 | 2411494 Centurion9.41
Centurion9.41's picture

And let's not forget his almost controlling stake in that little old rating agency....


Wed, 05/09/2012 - 18:06 | 2411489 Centurion9.41
Centurion9.41's picture

Not one of the three: Gates, Buffett & Munger, are Good Men.  They all used every ruthless capitalist tool at their disposal to build their "wealth".  Most prominent among them immoral deception and omissions; a.k.a. among "regular Joe's", lying.

As for the idiotic comments of Buffett & Munger re gold, to which Sprott appropriately applied the biach-slap, one needs only one picture.

Oh yes, as for all their "generous" philanthropy, I remember reading something about a little old widow and two mites...

Wed, 05/09/2012 - 18:57 | 2411607 blindman
blindman's picture

gold. buyers waiting for euro crash fire sale?
helped by price suppression in paper scam market.
silver. same thing. but will there be any for sale
at fire sale paper price? people still price in
something fiat, yes?

Wed, 05/09/2012 - 19:20 | 2411643 CryingBear
CryingBear's picture


Wed, 05/09/2012 - 19:52 | 2411701 Barry McBear
Barry McBear's picture

Trust me, he doesn't sell before the drops, if anything he buys right before the drops.  Look at his funds performance for proof.  He's a smart guy, has a great thesis, but is a horrible asset manager.

Wed, 05/09/2012 - 19:51 | 2411694 Barry McBear
Barry McBear's picture

Sprott's flagship hedge fund now has a neagtive return over the last 5 years.  Think about that.  Gold was the "investment of the last decade", Sprott is Mr Gold, and yet he's net down over the last half decade.  He's lost 40% over the last 12 months.  I'd hate to see how his fund would be doing if he was wrong!

Wed, 05/09/2012 - 22:23 | 2412005 riphowardkatz
riphowardkatz's picture

good grief that is spurious. worst is even with your stinky argument he is still killing most.

Wed, 05/09/2012 - 21:31 | 2411908 General Debility
General Debility's picture

"This being, that becomes;

From the arising of this, that arises;

this not becoming, that does not become;

from the ceasing of this, that ceases."

Gautama Buddha


Wed, 05/09/2012 - 21:39 | 2411923 Benjamin Glutton
Benjamin Glutton's picture

What is Gold equilibrium for CB's....I count 5 critical goals


1. price high enough to suppress retail(jewelry)

2. price high enough to encourage liquidation(jewelry)

3. price high enough to give investors pause

4. price high enough to hide manipulation

5. price shocking enough to enable more coordinated printing

Wed, 05/09/2012 - 22:04 | 2411976 zerotohero
zerotohero's picture

Sprott says gold $2000 by year end we shall see then - me - I hope so.

Wed, 05/09/2012 - 23:12 | 2412108 silverdragon
silverdragon's picture

10,000 industrial uses for silver.

Over here in HK/China we just keep buying physical silver. Hope the price continues to be manipulated.

Sooner or later there will only be paper silver available for production.


Wed, 05/09/2012 - 23:48 | 2412178 jmc8888
jmc8888's picture

Of course precious metals will tank from time to time.  But the crises that causes them to go down like this will be 'solved' with massive printing, which will just pump them back up even higher. 

Now we all know the central banks for the oligarchy will print, the question is, how long does it take?  Each time down the road the same timeframe will cause a greater collapse.  Of course this is the paper price.  The physical price always lags, and by the time physical drifts down even a fraction of a huge move, say paper silver at 10-15, the physical will still be over 20, and the printing will skyrocket it to new highs.  Nothing new in this thinking.

The paper silver market could go to zero and the physical market could explode much higher. 

Of course holding PM's is just the fallback plan, if the real change cannot be instituted.  Even if we entertain the notion that nothing will change until the collapse, you cannot concede that.  You keep fighting until the collapse happens.  When it does, you hope to have pm's and even dollar bills.  Of course since paper is plentiful, the wise choice is getting physical pm's first.  But a healthy supply of both would be wise.   When the printing presses and Bernanke's keyed in ipad is torn from his fingers, deflation will set in, and we really don't know WHEN this will occur.  So you do want both.  Just get physical pm's first.  

Besides in the beginning there will always be a fool who would still take fiat.  Wouldn't you rather relieve yourself during this time of some fiat rather than pm's?

Again this is the backup plan, the real plan is to not let the collapse happen.  Even if in the end it turns out there was nothing you personally could of done to swing the tide, you don't go into a fight expecting to lose.


American Credit System


Thu, 05/10/2012 - 05:59 | 2412502 Disenchanted
Disenchanted's picture




The same crew that controls worldwide fractional reserve banking systems(and the resulting usurious debt), control the gold(and silver) mines their production and thus the PM prices.

book it... 


The Babylonian Woe by David Astle


“In this time, as today, the people were almost entirely at the mercy of the private persons controlling their money, who then controlled the inflow of precious metals, silver and gold, the foundation of the people's money. The policies of these controllers from their standpoint as internationalists, were necessarily directed towards the stimulation of war against the well-being of mankind.”


A review of The Babylonian Woe with excerpts from John Kaminski:

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