Eric Sprott: Is the West Dishoarding Its Sovereign Treasure?
Last week Eric Sprott was interviewed by Chris Martenson, the interview and text can be seen in the above link to Zerohedge. Mr. Sprott asks the question, “Where is the Gold coming from and where is it going to?” When looking at the supply and demand equation he is absolutely correct. The Gold HAS to be coming from somewhere. All you need to do is follow his logic. China and India are buying Gold at a pace somewhere near 2,000 tons per year while mines are producing just shy of 2,500 tons per year. Refiners who purportedly used to reclaim and re-refine something like 1,500 tons per year are all of a sudden seeing a drop of 50% of their supply. This only makes sense as “cash for gold” has been sweeping the streets clean since gold crossed the “astronomical” level of $1,000 per ounce. How many more heirlooms and class rings can be left to melt down?
Add to the above that central banks are now buyers of gold as opposed to sellers and the supply/demand equation has been tipped upside down. The gold is coming from somewhere for sure (as it has been for the last 20 years) but where? The answer is obvious and all you have to do is look for where it is “supposed” to be. Namely ETF and central bank holdings. The flip from sellers to buyers by some 900 tons (by central banks) has occurred in a market that even the World Gold Council can only find 4,000 tons of supply. So… China and India are buying 2,000 tons, central banks are buying 500 tons and the mines produce… 2,500 tons per year. WHAT is left? Where is it coming from? Does it matter? Well yes it does if it’s coming from your “stash” represented by a paper receipt but that’s a story for another day.
What I wanted to write about today had to be set up by the above because of the pure unadulterated logic that the numbers just don’t work and some sort of “hanky panky” is and has been taking place for so many years. I wanted to point out that many respected, well known and some even “mainstream” people have come around to the view that GATA has held since 1999. The Gold market is manipulated! I know, this is not breaking news. Slowly but surely the manipulation has become TOO obvious to ignore and people who didn’t want to be thought of as “conspiratorialist” have come out publicly to call a spade a spade.
Go back 5 years in time and virtually NO ONE called the gold market “manipulated.” GATA did and several people who were published there along with a few other “lunatics” but metals manipulation was like the “crazy aunt in the basement;” no one wanted to talk about it. Since then, John Embry broke the ice and wrote in pretty strong terms that gold was being suppressed. Then Jim Sinclair publicly talked “manipulation,” (I know that he knew this far earlier but in light of his “crazy” $1,650 gold call probably figured that talk of “manipulation” would make it seem like he was from another planet). Eric Sprott (who knew the deal but remained low key and didn’t “get up on the soap box” until maybe 3 or 4 years ago) are now writing wonderful and completely logical (and supported by facts) pieces proving the manipulation. Gerald Celente finally came around after getting burned by John Corzine and MF Global. Even Bill Gross, the manager of the largest pool of “debt” money in the world has spoken publicly about the value of gold in a portfolio. He knows the deal but would probably be “heart attacked” if he ever mentioned “official gold” and manipulation in the same sentence. CNBC has even mentioned “manipulation” and “QE to infinity” (do you think they might read www.jsmineset.com from time to time?). Zerohedge came around about a year and a half ago which I never really understood because they are so smart and really don’t care about political correctness. Maybe they needed more proof and market action was all they needed? Hell, even a couple of Fed governors have fessed up and admitted that EVERYTHING is manipulated (“everything” by the way includes gold and silver). I do want to point out the most obvious, “Why would gold and silver be the ONLY markets not manipulated?” They have THE most obvious “motive” TO be manipulated so mere common sense gives you the answer.
My point is this and was bought up by Mr. Sprott, it is now OBVIOUS that the metals are and have been manipulated (lower) in price that common sense tells you they are THE most manipulated markets on the planet! So why do I write this? It is again time to put on your 3rd grade thinking cap. If gold and silver are manipulated and “they” don’t want you to own them (well duh!), you not only SHOULD own them, for your survival alone you MUST own them! If you believe the government will “protect and provide” for you, then, well, God bless you. If you understand that you must provide for yourself and your family then you understand that you must also “think” for yourself.
The latest correction in silver and gold created the most “fear” amongst investors that I have seen since the year 2000. Though a smaller correction than in 2008, the of level of “fear” was unprecedented. The “manipulation” was THE most blatant and lasted longer time-wise than any that I can recall. Hedge funds are now more short the metals than ever while the commercials are less short than ever. Sentiment is the most horrific, true, and real supply and demand are the most lopsided, central bank monetization higher and fundamentals never better than they are now. If we have not already seen the “bottom” (which I think we did last week), it is very very close and the upside will occur rapidly leaving behind forever those that panicked out.
Please understand that you must think for yourself and protect your families on your own. You must follow your “real gut” that tells you something is wrong, REALLY wrong! A rubber band can only be stretched so far before it breaks, the current rubber band will break when a delivery somewhere does not occur. Once this happens the door will shut, positions frozen in time and no chance to “fix” your position will be allowed. “Supply and demand” will be redefined as in zero supply and unlimited demand. It will be far better to have something that everyone wants than to want something that no one is willing to part with!
I just can’t quit thinking about Germany wanting their gold back and being told it will take 7 years !!! How can someone hold your property for you and then sell it without telling you !!! And when you want your property back you get told to take a hike and wait 7 years.
What’s happened to all that money held out of my checks for 50 years and suppose to be held in an account for my social security? Spent without my knowledge !!!
Yes, it’s so obvious there are ZERO free markets and every thing is manipulated with silver and gold the most manipulated.
Now it appears they want to manage our 401k’s because we are not smart enough to do so ourselves. Well, with 16+ trillion in debt they are the “dumb” ones. Leave me out of their management programs. The truth is that there are no management programs, just “theft programs”.
Wake up sleeping sheeple.
Remember the following phrase the rest of your life because nothing else is more true:
“NO ONE IS GOING TO TAKE CARE OF YOU BETTER THAN YOURSELF”
Keep relying on the elected thieves and you will not have 2 nickels to rub together !!!!
The gold and silver stories are not propagated into the conciousness of the average American. Government controlled media will not permit it (lest they risk losing their broadcasting liscenses and jobs.)The few exceptions cited in Bill’s article are encouraging but a general understanding by the masses is light years away.
The average American will never wake up until our system implodes and even then the masses will never truley wake up. They simply will be left stunned and confused not knowing what happened to them.
Yes, agreed. Which is why I finished with “It will be far better to have something that everyone wants than to want something that no one is willing to part with!”
In Holter’s article above, he states, “even a couple of Fed governors have fessed up and admitted that EVERYTHING is manipulated”. Could someone point a new reader in a direction for further reading on this event? Thanks.
I believe about 2 weeks ago Fed Governor Fisher alluded to the markets being “helped” by QE along with another Fed governor near the same time span. Zerohedge did a piece on it at the time, searching their archives is your best bet. Fisher obviously didn’t use the word “manipulate” but it was quite plain to understand what he was saying.
The stupidity of most people in the western world is astounding. We are being fleeced by crooks of the highest order. You can show people the evidence and they still believe CNN, CNBC etc. They deserve everything coming to them. I especially like the folks in Vancouver,BC who believe that real estate only goes up and that they are smarter than everyone else. They don’t get that it is all an illusion based on credit…endless credit. What Morons!
Are precious metal prices munipulated? Follow the logic: The dollar is ink on paper. The Government that creates the dollar is broke (when you have to borrow .43 cents of every dollar you spend you are broke). So, the only thing that gives the dollar value is confidence in it. If precious metals prices are allowed to rise confidence in the dollar goes down. Since the Fed can create dollars (ink on paper) out of thin air it is a no brainer to use this “money” to depress (sell short) precious metals. Today there was an article on Bloomberg regarding the tax payers giving the big banks 83 billion dollars a year (thru “their” government) to prop them up. So, are the banks and politicians in bed together? Conclusion? Still not convinced? Who pays for these professional politician’s campaigns (elections)? It’s ALL manipulated, and it will continue to be until it can’t be, i.e., until it collapses. What option then? “Head for the hills.”
Now you sound like me!