And if so,
what will happen once it's done?
February 23, 2013, 9:10 AM
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.
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.
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.
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:
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?
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)
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