“If your system’s going to crash, you want to have gold and silver. Physical.” - Eric Sprott on systemic instability

“If your system’s going to crash, you want to have gold and silver. Physical.” - Eric Sprott on systemic instability (Weekly Wrap-Up, April 20,2018)

By Craig Hemke, Sprott Money News

It’s been another week of rising inflation and interest rates, but the commodities markets look good, with silver in particular poised for a breakout.

 

This week, Eric tells you:

 

  • What a possible short squeeze means for you
  • Why you should be watching the bond market right now
  • And why India might be the next big buyer of gold

 

“It’s not just the net short position that is important. It’s: What if a Long says to a guy who’s short, ‘I’d like my silver?’ ‘I’d like my metal?’ We have over a billion ounces of short metal in silver. What if the Long simply says, ‘I can see there’s a bit of tightness showing up here in these various metals… maybe I’ll take delivery, thank you very much.’ Of course, as we know, the seller of the silver and/or gold doesn’t have the metals. So, yeah, there’s a very distinct possibility that this could erupt as people are getting more distressed… There are lots of smart guys that worry about the system crashing.” 

 

To hear Eric’s full thoughts, listen here: https://soundcloud.com/sprottmoney/sprott-money-news-weekly-wrap-up-42018

 

“If your system’s going to crash, you want to have gold and silver. Physical.” - Eric Sprott on systemic instability (Weekly Wrap-Up, April 20,2018)

By Craig Hemke, Sprott Money News

Check out these other articles by our contributors:

Ask The Expert-Michael Kosowan - April 2018

COMEX Exchanges For Physical-Craig Hemke (17/04/2018)

Roaring Back, Cryptos Burst Onto the Scene… But for How Long?- Nathan McDonald (13/04/2018)

 

Comments

DarkPurpleHaze Fri, 04/20/2018 - 11:39 Permalink

Ah, more "squeeze" talk.

The likelihood of a "squeeze" is of historic proportions the pundits say.

We've heard this all before seemingly year after year for how long now?

The much needed "squeeze" is a trendy topic right now while silver languishes at $17-ish currently because the people who continually trot this "squeeze" hype desperately need to be right about it this time.

Or they can blame suppression/manipulation once again. And they will.

It's funny though how none of these short squeeze sirens/shills NEVER mentions the epic collapse of silver prices and all the B.S. predictions/hopium THEY were proclaiming while it kept falling year after year until where we find ourselves now. And they're talking "squeeze" again.

Why should I believe the same talking heads now about some contrived squeeze narrative that hasn't held any water for years? What excuse/crutch will they lean on this time when nothing significant or lasting happens from this latest "squeeze"?

The only "squeeze" I detect is the last drips of credibility of those who've run their "reputation" through the wringer over and over, year after year.

And btw...how's that ridiculous death of the USD thing working out for you? Is JPM long or irrepairably short this time?

Anyone not memory or bias impaired will keenly remember all the deluded huckstering by some who couldn't sharpen their knives/tongues fast enough because JPM was going to GET CRUSHED over their massive silver short positions. Right???

 

Buyer beware. There are shills among us who'll say anything for a dollar year after year who were COMPLETELY wrong about almost everything up until this point in time.

Just who is actually being "squeezed" year after year?

http://pmaccountability.com

ZIRPdiggler Bring the Gold Fri, 04/20/2018 - 22:56 Permalink

I think what he's saying is; it will ALWAYS be rigged and no one will continue to care. especially the "regulatory" agencies and gubmints. we all know this game. it will continue, along with all regularly scheduled casino banking. when you make up the rules at a whim to suit your needs, you just do whatever the fuck you want. I am confused about why every one is confused about this.

In reply to by Bring the Gold

3LockBox Bring the Gold Sat, 04/21/2018 - 13:27 Permalink

It always amazes me how quickly all the posters with allegedly absolutely no interest in Silver & Gold use up their time to rush over and slam the space and try to belittle the contributors.

DarkPurpleHaze just stalks Craig Hemke like a pathetic little troll.

He even got in the very first post. Just lurking day and night rubbing his hands together wondering when he can get the next chance to slam him.

Sad.

In reply to by Bring the Gold

Bond Wizzerd DarkPurpleHaze Sat, 04/21/2018 - 10:47 Permalink

You never stop paying for a bad education. If you read history, you would know that on April 5, 1933, FDR ordered all gold turned in for paper money for the set price of $20.67 per ounce. Two months later, Congress abrogated the gold clauses in all debt obligations. Then In 1934, government revalued gold to $35 per ounce- with the stroke of the Presidents pen.

You're looking for a market event when what you should be fearful of is a binary situation. Some Sunday you'll go to sleep thinking you're cash has value, and you'll wake up 8 hours later and find out you were wrong.

People buy car insurance not because they plan on dying in a fiery car crash, but because it will look pretty thoughtless and stupid to their loved ones if they did have an accident and they didn't.

In reply to by DarkPurpleHaze

Bond Wizzerd DarkPurpleHaze Sat, 04/21/2018 - 10:58 Permalink

You never stop paying for a bad education. If you read history, you would know that on April 5, 1933, FDR ordered all gold turned in for paper money for the set price of $20.67 per ounce. Two months later, Congress abrogated the gold clauses in all debt obligations, and then a year later revalued gold to $35 per ounce- with the stroke of the Presidents pen.

You're looking for a market event when what you should be fearful of is a binary situation. Some Sunday you'll go to sleep thinking you're cash has value, and you'll wake up 8 hours later and find out the government decided you were wrong.

People buy car insurance not because they plan on dying in a fiery car crash, but because it will look pretty thoughtless and stupid to their surviving loved ones if they did have an accident and they didn't have a policy. You sound like one of those people.

Answer me this Einstein; when(not if) the US Dollar is no longer the world's reserve currency, will the dollar go up? If it doesn't go up, do you really think it will go down just a little(see GBP circa 1976)? If it doesn't go down just a little, wouldn't it be prudent to have "a little something" you can sew into the lining of your jacket as you escape what will no doubt be a full fledged totalitarian regime?

In reply to by DarkPurpleHaze

1.21 jigawatts Fri, 04/20/2018 - 17:54 Permalink

But with phyzz you have to drive all the way to the dealer to sell

when Shlomo monkeyhammer dumps $2 billion notional in ETFs

in one second with a fat finger. 

Shlomo wants you to buy phyzz. 

Jungle Jim Fri, 04/20/2018 - 19:08 Permalink

All I know is, gold went down again sharply yesterday and today. I don't really keep up with silver anymore since I don't have any of that now. I was *forced* to sell all of my silver at yard sale prices. 

Yeah, I know, it's rigged. I get that. But who is ever going to *un*-rig it?

besnook Fri, 04/20/2018 - 20:22 Permalink

what makes the gold and silver for disaster stories hard to take is that the only 2 stories i know of where gold was actually used during a disaster was out of zimbawe and poor people mining for gold in a dump somewhere. i have accumulated old scrap silver for years with disaster in mind and i am sure i will be able to use it if money gets scarce but i have never read any stories to back myself up.

Kokulakai Fri, 04/20/2018 - 22:05 Permalink

And if gold and silver crash (see May 2011) you will want to have cash.

Silver is worth what our masters say it is worth.

Besides, enough silver to save your hide is too heavy to carry.

I like silver, but as a hedge against catastrophe gold is the vehicle of choice.

ZIRPdiggler Fri, 04/20/2018 - 22:52 Permalink

hahahahahaha....this aint gonna happen. Heard this bullshit for 10 years. there's always a bailout somewhere. People are stupid and they will continue to have confidence in the dollar long after it makes any sense to do so. we surpassed that point years ago but take a look around.

FIAT CON Fri, 04/20/2018 - 23:10 Permalink

The very same issue that moved gold from $600 - $1900 in 2011 will happen again soon, when the can kicking catches up with the system. Gold will triple, then settle at double again, at the least.

Look at the history of gold has it ever gone down?

Sure it loses some gains but never goes south, never. 

moonstears Fri, 04/20/2018 - 23:42 Permalink

The comex can settle in dollars. The comex can settle in dollars. The comex can settle in dollars. The comex can settle in dollars.

 

Not bashing metals, hear there are lake bottoms full of it, but remember. You want silver, go to a coin shop or buy a boat and go get some, IF you want dollars...  The comex can settle in dollars.