With the end of another wild week of trading in global markets coming to a close, today billionaire Eric Sprott told King World News that there is no gold left in vaults where the US gold as well as other foreign countries’ gold is supposed to be safely stored. The Canadian billionaire also spoke about happenings with the ETF GLD. Below is what Sprott, Chairman of Sprott Asset Management, had to say in Part II of this remarkable interview series.
Eric King: “Eric, what about the looting of GLD in 2013? Obviously we are not seeing that so far in 2014. What does that mean for 2014?”
Sprott: “Well, Eric, in fact we’ve had a couple of days when gold has (actually) gone into GLD. We are talking about 900 tons of gold that came out of the various ETFs (in 2013).
“If you have any contrarian in your spirit at all, this (gold) is the most contrary bet you can ever make. It would be most surprising as the year unfolds if we get buying in the (ETF) GLD.
Imagine for one second that instead of getting 900 tons (of gold) coming out of ETFs, we had 900 tons go into ETFs. That would be a dynamic 1,800 ton change, when we (only) mine something like 2,100 or 2,200 tons a year, ex-China, ex-Russia. That in itself would almost consume the year’s mine supply, let alone that China is going to buy more than the (entire) year’s mine supply based on the trends that we’ve experienced already.
I just think gold is threatening to blowout (to the upside), and I think when it does there will be lots of guys wanting to put money in. Then, of course, GLD will be forced to go out and buy some gold.”
Sprott added: “I really believe that the decline last year was orchestrated because the (Western) central banks have run out of gold. To think that the US Treasury, which theoretically had 8,000 tons of gold, could only deliver 5 tons to Germany (laughter ensues). The dots you can connect are so obvious that there is no gold there (in US vaults). You would think they could have done a hell of a lot better than that (delivering only 5 tons), but they couldn’t. So I think we will see a lot more spirited buying of GLD, and it’s impact on the physical market could be very dramatic.”
Source King World News