Posted by rahrens_1 on July 05th 2011 at 08:47 pm
In a new interview Sprott see’s bullion going supernova, especially after QE3. He notes once enough people ask “Why have your money in a bank earning nothing? Why not have it in something that might at least maintain it’s purchasing power?”, the capital flows into the precious metals will dwarf current levels, sending bullion prices much higher.
Sprott also notes that if you had told him 5 years ago of some of the creative things the US government would do and the bond market would be reasonably stable he wouldn’t have believed you.
Sprott notes we’ll see inflation in real assets and deflation in paper assets. Doesn’t consider commercial real estate as real assets, usually very heavily backed with debt.
WRT the Sprott gold and silver trusts, there was very low institutional interest. When these institutional players do get involved prices will move higher. The physical silver demand far out ways supply. If China has gone from 100 million oz of silver exports in 2005 vs 100 million oz of silver imports how has the shortfall been made up?
Full interview here.