Sunday, October 20, 2013

Eric Sprott: "Gold And China To Dominate The World." GLD, MUX, TNR.v, GDX


 Eric Sprott is very bold with his call for Gold at $2400 next year. He stands his ground and continues to talk about overwhelming demand for physical Gold from China. According to Eric, investing in the right Gold and Silver equities provides the opportunity of a life time for wealth creation now.
  Now after the Debt Ceiling can is kicked down the road for a few weeks without resolving anything, investors will be back to the analysis of the real economic situation. We can forget about Taper until the next year at least with the looming circus entertainment Debt Ceiling Increase 2.0. Default is avoided, but the damage is done. We are very positively surprised by the amount of US Dollar negative articles in the mass media these days. The story about the End of the Reserve Currency of Choice - US Dollar is making its way to the surface now.
  Last week US Dollar has printed the closing below the all important 80.00 level and is now below the 200MA. Gold on its part is in the break out mode, finally and has painted the set of very interesting charts.

Peter Degraaf: Don’t Miss Out on These Important Gold Charts. GLD, MUX, TNR.v, GDX

"Peter Degraaf has produced a set of very interesting charts which we would like to share with you today. Gold is at the very important juncture now and when Jim Cramer is talking about "U.S. as a laughing stock around the world" the "serious investment" public will take notice."

 US Dollar charts look very weak now after the close under 200MA.

Jim Rickards – Why China is Buying Gold & Calling for a De-Amercanized World GLD, MUX, TNR.v, GDX

"Jim Rickards steps in with his analysis of the recent China Call to De-Americanized World and its implications for the Gold market. China buys Gold by tons now on the dips and taking the physical delivery."

Peter Schiff On Gold Catalyst: Janet Yellen Exposed - The Truth Behind the Myth GLD, MUX, TNR.v, GDX

"Peter Schiff separates truth from the mass media hype about Janet Yellen's real track record. As we have discussed before, her core beliefs are even more neo-keynesian than those of Ben Bernanke. The new play book for the FED is written by Michael Woodford and it will be even more fundamentally positive for the Gold. We can expect continuation of "pro-growth policies" with very little regard for the created bubbles along the way.
  Peter was right about the Housing Bubble in 2006, he was right about the "Tapering" in September, what will happen if he is right again with his Call on Gold? We will provide his discussion on Gold and our entry on Michael Woodford to dig it out more for interested."

King World News:

Sprott:  “Most of the things I think are going to happen are all based on facts.  You can look at the facts on physical demand for gold and silver.  You can look at the facts on governments deficits, and you just have to take yourself to where it’s going (the end game).  And whether it happens in a year or two, it’s going to happen.

“We’ve had so many false starts (and promises) -- ‘The economy is going to be great in 2010,’ and it’s not.  ‘It’s going to be great in 2011, 2012, 2013,’ and it’s not.  Now, they are already talking about it being ‘great in 2014.’  But we are actually regressing, even though they (central planners) don’t want to admit it, because the numbers are all manipulated in one way or another.  

It will happen that gold will be accepted as the asset to back a (major) currency.  And the currency with the most gold behind it, which I suspect is already the Chinese yuan, and growing rapidly, will be the dominant currency going forward.  Of course this doesn’t portend well for all of the central planners currencies.  They (the Chinese) are doing the smart thing by buying real physical assets.  So I guess the best way of putting it is, just follow the Chinese, my friend, and you are going to be OK here.” 

Eric King:  “Eric, it is staggering to think that demand (for gold) is twice (global) mine production.  It’s almost unimaginable.”

Sprott:  “The numbers speak for themselves.  In 2012 I wrote that I can see 2,200 tons of net new buying per year in a market that produced (only) 2,700 tons (of gold).  That was back in 2012.  Just think, Eric, in the 12 months to August of 2011, China imported something like 100 tons (of gold).  Now they import 1,200 (tons of gold).  They’ve increased their tonnage (of gold purchases by a staggering) 1,100 tons.

If the total (world) supply, including recycling is 4,000 (tons), which I highly doubt, that means they’ve come in and bought an extra 25% of the market.  How can somebody come in and buy an extra 25% of the (entire global) market at that same time that the price falls by 30% or 40%?  It’s just totally ridiculous that it would ever manifest itself that way.  If they bought (an additional) 25% of the oil, wheat, or the corn markets, the price would not be going down.”

Catalyst: Uncovering China’s Rush for Gold GLD, GDX, MUX, TNR.v

"While a lot of people are still wondering why the Gold is beaten down again, it is important to keep the big picture in front of you. As it is happening with Copper now the main player in this market is the same - China is on track to implement state level plan to diversify US Dollar based assets.
  We would like to share with you brilliant report conducted by Jan Skoyles on this subject."

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