Tuesday, January 15, 2013

Demand For Gold Is Overwhelming Central Banks

“It doesn’t take many people to think that there is something wrong with the system and want to move into gold, when gold represents less than 1% of all financial assets. It doesn’t take much of a turn by the people who own the other 99% to (dramatically) change the price of gold.

We’ve had some great thinkers who have come around. I refer to Bill Gross, Kyle Bass, Ray Dalio, I mean there are a lot of people realizing it’s the time to be in gold and silver. I think they are acting it out by the way (by purchasing physical gold and silver).

The Western central banks have for sure been supplying the gold, and they are probably in a jam. In fact, I almost look at those minutes that came out as recognition of the real problem they are facing, that the demand for physical gold is just overwhelming them. And they have to keep this volatility in the market so that there isn’t a groundswell of interest in terms of buying it.

But I have no doubt the physical story will win the day, ultimately, and it’s not very far away. I was not surprised to see the US Mint halt sales in mid-December and say they wouldn’t start them again until January 7th, which is what they do when things get tight. But I would imagine you’ve had people telling you the markets for silver and gold are tight, and there is no way they can’t be based on all of the work that we do."

- Eric Sprott via a recent three part King World News Interview, read the third interview here: