Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench

Eric Sprott: Is the West Dishoarding Its Sovereign Treasure? *podcast*

IMG Auteur
Published : February 25th, 2013
468 words - Reading time : 1 - 1 minutes
( 1 vote, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire

Podcast

And if so, what will happen once it's done?

by Adam Taggart

Saturday, February 23, 2013, 9:10 AM

We are well into the financial crisis. Everyone’s trying to keep it together, even though it would appear from the reading of the economy things are not going well at all here. And everyone's ignoring things.


But I think, in their hearts, the Central Bankers must know what they’re doing is totally irresponsible. And the tell of that irresponsibility which is the debasing of the currencies is the fact that real things will go up in value. This should be reflected in the price of gold and silver.

So expresses Eric Sprott, CEO and founder of Sprott Asset Management, and one of the most experienced and vocal advocates for owning precious metals.

The past decade has validated Eric's thesis, as gold has risen considerably against all world fiat currencies. But what vexes him is that in recent years, when currency debasement has accelerated to extreme levels, precious metals prices have been clearly suppressed, particularly versus the U.S. dollar.

As the topic of price manipulation is nothing new, Eric finds his focus increasingly drawn to where the precious metals are going at these bargain prices - who is accumulating and who is dishoarding:

I’ve done a lot of work on the flow of metals. I come up with a net change of 2,300 tons a year in new buying in gold when the supply of gold hasn’t even gone up in the last twelve years. And you keep wondering: Well, where’s all this gold coming from?

His findings support the growing meme that there is a massive bullion transfer from West to East. This should particularly concern those in the U.S., EU and Canada as his suspicion is that, increasingly, it's monetary gold that is being sold.

There are several key questions to ask here (not that the data publicly exists to answer them):

  • How much of our sovereign monetary bullion reserves have been sold to date?
  • How much will be sold in the future? (Are we willing to sell all of it? or is there a limit we refuse to let go of?)
  • What will happen to the price of gold & silver when central banks stop selling to another? (Answer: shoot the moon)
  • What will be the fate of those economies that dishorded their treasure? (Answer: lamentable)

For precious metals holders licking their wounds from the carnage of the past several months, this podcast offers both new insights and sound reminders of the long-term reasons for owning gold and silver. Those on the sidellines considering entering into the precious metals, perhaps for the first time, should consider reading our guide to Buying Gold & Silver after listening to this podcast.

Read the rest here : Source


Companies Mentionned : Bullion | Metals X |
Data and Statistics for these countries : Canada | All
Gold and Silver Prices for these countries : Canada | All
<< Previous article
Rate : Average :5 (1 vote)
>> Next article
All the stuff you don't want to know about, but should. And, when you do know, you realize that for the present you are powerless to change it This article is brought to you by the Charleston Voice E-mail List. To subscribe FREE to the distribution list, send an e-mail to the author with 'SUBSCRIBE' in the subject line.
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Royal Dutch Shell(Oil)RDSA.AS
Hull damage forces Shell Arctic support ship in for repairs
€UR 24.84-1.97%Trend Power :
Corporate news
Royal Dutch Shell(Oil)RDSA.AS
Oil & Gas Stock Roundup: BP Resolves GoM Claims for $18.7B, Shell OKs Appomattox Project - Analyst Blog
€UR 24.84-1.97%Trend Power :
Corporate news
NextEraNEE
FPL announces plans to move forward with next major investment in continued modernization of its power plant fleet, building on successful strategy of advancing affordable clean energy in Flori
US$ 102.88+2.41%Trend Power :
Corporate news
Scorpio GoldSGN.V
Scorpio Gold Reports Results from 2015 Exploration Drilling at the Bluelite North Target Area, Mineral Ridge Project, Nevada
CA$ 0.12-4.17%Trend Power :
Corporate news
Manas Resources(Au)MSR.AX
7 July - Board Changes
AU$ 0.01+0.00%Trend Power :
Corporate news
Excelsior MiningMIN.V
Excelsior Announces Updated Mineral Resource Estimate
CA$ 0.38-2.60%Trend Power :
Corporate news
Alcoa Inc.AA
With global economic policies hamstrung, investors turn to earnings
US$ 11.06+0.27%Trend Power :
Corporate news
Alcoa Inc.AA
July 7 Premarket Briefing: 10 Things You Should Know
US$ 11.06+0.27%Trend Power :
Corporate news
Alcoa Inc.AA
Why The Container Store and Alcoa need to beat earnings
US$ 11.06+0.27%Trend Power :
Corporate news
Anaconda Min.(Au)ANX.TO
Kevin Bullock Joins Board of Directors of Anaconda Mining
CA$ 0.05+0.00%Trend Power :
Nominations
Comments closed