We hear about money flowing out of Greek banks and why wouldn’t it? And the next one was the money will be flowing out of Portuguese banks. And sooner or later, instead of just moving from bank A to bank B, people might start moving it from bank A, B and C to precious metals. Which I think is what ultimately will happen here and provide this huge supernova for gold and silver.Huge Supernova? Sprott is making up new expressions to explain how fast the prices are going to rise and reach the sky. Unfortunately, there is no English word to qualify his über-bullisness.
Well first of all I think COMEX is a joke and I think all the paper markets are a joke. As you are probably aware, we trade a billion ounces of silver a day. A billion ounces. The world produces 900 million a year. And you know, rather than us saying well the buyers are speculators, what are the sellers thinking? He is trading a billion ounces in the sell side, and there is all 28 million in the COMEX there is obviously a shortage of silver. What is the guy selling it thinking? He is the guy with the unlimited losses.
First, banking defaults are deflationary in monetary terms.
Second, when the paper markets are what they are. It's not because million of ounces of gold or silver are bought and sold in a day, that it can have any relation with the production of silver. Specially now that you have automated market making systems (which do not keep any market exposure) and HFT.
So much nonsense in such a few number of sentences is unbelievable.
I am very much happy to find an ally in M3 Financial Blog, and agree 100% with the following statement they make: this Silver hype will likely mark the ending of Sprott's credibility and result in his disgrace.