Today billionaire Eric Sprott told King World News that the recent historic panic bottom has ushered in a brand new phase of the gold bull market. Sprott also spoke about the massive panic buying we are seeing around the world. This is the first in a series of written interviews with Sprott that will be released today. Below is what Sprott, who is Chairman of Sprott Asset Management, had to say in part I of this remarkable series of interviews.
Eric King: “We had this unbelievable smash in gold, in silver. We’ve come off the lows here, but your thoughts on that whole experience and what people had to endure here.”
Sprott: “In my mind it was quite bizarre. I put it down to one of two things: Either central bank manipulation, which I would fully understand why they would do it, or some technical technical breakdown in the derivatives market which might have caused it.
I would prefer that it’s central bank manipulation because I know that it’s not going to work. But the fact is that I think we’ve had a historic panic bottom here….
“The recovery has been quite impressive so far. I suspect when we all look back at this a year from now when the price of gold is at record highs, we will look at this smash and say, ‘That was the bottom.’ It’s typically what happens at a bottom. Everyone panics.
The volumes were incredible, all paper by the way. But the sheer cleansing of the system, when everyone should have realized that all of the facts, all of the future prognostications of what the central planners are likely to do, and the goings on in the financial system, were screaming at you to buy gold. And at the same time everyone is panicking out of it.