Incredible Global Gold Rush Triggers $3,000 Target

April 29, 2013

Today billionaire Eric Sprott told King World News that the incredible global gold rush we are witnessing right now has triggered a $3,000 price target for gold. Sprott also spoke about the extraordinary events we have just witnessed in these key markets and what it means going forward. This is the second in a series of three 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 II of this remarkable series of interviews.

Eric King: “We’ve been discussing quite a bit on King World News the desperation of the central planners, and especially when we saw the very unnatural action taking place in gold and silver. When you see that kind of desperation, Eric, what does it tell you? Because it’s become more pronounced than we’ve ever seen it.”

Sprott: “It’s just pure insanity. When gold and silver got hit, gold traded about 120% of its annual production in one day (in the paper market). We had offerings of 25% of the world’s mine production at one time, and who in the hell would have 25% of the world’s mine production available for sale in a minute? And who would want to sell it in one minute? It’s just ridiculous….

“So we see all of these paper (trading) volumes going through that bear absolutely no relationship to what’s going on in the physical markets. As you know I have always been a proponent of the fact that supply in the gold market was way less than demand, and by a very large factor. I think demand exceeds supply by at least 60%. The central banks are surreptitiously supplying that gold, and ultimately they will be running on fumes.

When we hear about the LBMA not willing to deliver gold, and JP Morgan’s inventories at the COMEX have gone from 2.4 million (ounces) down to 160,000 ounces, it just makes you realize that all of this paper trading means nothing. It’s the real physical market that you have to rely on.

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