Monday, February 25, 2013

Gold is Moving! (From West to East)

Eric Sprott (Sprott Asset Management): "... we are so well into the financial crisis, there’s not a week that goes by that’s there’s not some event that comes up, whether it was three weeks ago, Banco de Monte Paschi [Belgio], and two weeks ago the third largest bank in the Netherlands gets taken over, over the weekend. And last week the ECB lending money to Peugeot, which seemed totally ridiculous. And I think everyone’s trying to keep it together, even though it would appear from the reading of the economy that things are not going well at all here. And everyone’s ignoring things. But I think in their hearts the Central Bankers must know [that] what they’re doing is totally irresponsible. And the tell of that irresponsibility, the debasing of the currencies, is the fact that real things will go up in value. It would start with the price of gold and silver. I’ve done a lot of work on the flow of metals. I come up with a net change of 2300 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, where’s all this gold coming from? And when I see China buying 95 tons of gold in December and I read that India bought 100 tons in the month of January, when we all collectively know there’s only about 200 tons a month available – one of the things we saw in December was that the U.S. Department of Commerce reported that U.S. exports of gold were $4 billion dollars. We exported 2.5 million ounces of gold. And where it comes from, God knows. The country only produces 8.8 million. And most of that’s used internally. So I don’t know how you just come up with 2.5 million ounces that you’re able to export.  So I believe that even though it’s described as non-monetary gold, my guess is that it is monetary gold. So there’s lots afoot here in central banking to try to keep it organized. And I think one of those things is to keep the price suppressed. But the non-G6 nations have been huge buyers of gold, and I think the more anybody looks at the system from outside looking in, they realize they have to have gold and silver, notwithstanding the nonsense that goes on in COMEX and the LBMA (London Bullion Market Association)."