Eric King: “We’ve been discussing quite a bit on King World News the desperation of the central planners, and especially when we saw the very unnatural action taking place in gold and silver. When you see that kind of desperation, Eric, what does it tell you? Because it’s become more pronounced than we’ve ever seen it.”
Sprott: “It’s just pure insanity. When gold and silver got hit, gold traded about 120% of its annual production in one day (in the paper market). We had offerings of 25% of the world’s mine production at one time, and who in the hell would have 25% of the world’s mine production available for sale in a minute? And who would want to sell it in one minute? It’s just ridiculous....
“So we see all of these paper (trading) volumes going through that bear absolutely no relationship to what’s going on in the physical markets. As you know I have always been a proponent of the fact that supply in the gold market was way less than demand, and by a very large factor. I think demand exceeds supply by at least 60%. The central banks are surreptitiously supplying that gold, and ultimately they will be running on fumes.
When we hear about the LBMA not willing to deliver gold, and JP Morgan’s inventories at the COMEX have gone from 2.4 million (ounces) down to 160,000 ounces, it just makes you realize that all of this paper trading means nothing. It’s the real physical market that you have to rely on.
Everything I believed in keeps pointing to more and more buying. God forbid that I might be able to say that investment demand might go up 100% this year because everyone is buying gold. Where would it come from? There is already a shortage. So it’s just pure insanity.
I think we will look back at the gold chart and you will see this panic selling at the bottom and (we will be at) new highs in the market. We will realize when we breakout through $1,920, and we got down to $1,320, it’s going to count for the gold price being another 50% higher.
We are going to have an excellent shot at $3,000 gold because this thing is totally sold out here based on the action of the Friday and Monday of the previous weeks. The whole exercise backfired. If it was central bank manipulation or somebody trying to break the market, it totally backfired.
I can’t believe that I can say to you that the US Mint has sold 1,000% more gold this month, than April of last year, and the month is not even over. I’m shocked that I can say the UK Mint has sold 200% more. You hear numbers out of China and India of hundreds of percent differences.
I mean these are staggering developments in a market where the supply has been essentially fixed for 13 years. The mining supply went down last year. Mining supply will go down this year, and yet we see a huge surge of physical buying all over the place. This has been a wonderful response from people who realize the ridiculousness of what the central planners are doing.”
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