Lauren Lyster puts the tough questions to Eric Sprott regarding gold and silver and whether or not investment in such is warranted, given the lackluster performance over the past year. Sprott responds by pointing out that given the increases in quantities of the metal that have been purchased recently, it’s highly likely that central banks have been leasing their physical gold into the marketplace in order to suppress the price.
- In the last 12 years, the annual physical gold demand has increased by 2500 tonnes/year. But the supply of gold has remained flat. Where does the new metal come from to meet this new demand?
- Some rather prominent central banks have recently been subjected to questions asking about the validity of their gold claims held in foreign vaults (i.e. Germany and Austria).
The discussion continues to include:
- The Fed is buying 90% of US Treasuries. Japan and other central banks are practicing similar policies. Central banks of the world are trying to keep interest rates low for extended time frames, “which is ludicrous.”
- Sprott expects silver to outperform gold in the next decade and points out the investment ratios he’s seeing from the entities making purchases of these two precious metals.
- Lauren Lyster defines Hard Money and it’s relation to old and new central banking policies.
- A record 47.7 million Americans are now on food stamps, according to the latest report from the Supplemental Nutrition Assistance Program (SNAP).
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