Sprott: ‘Liquidation’ Shifts Focus Back On Metals
Posted by Investment Rarities on May 18th 2012 in Bailout, China, Federal Reserve, General Economy, Gold, JPMorgan, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!
As Spiegel reports that “Fears of bank runs mount in southern Europe,” Eric Sprott tells King World News that while central banks and governments are desperate to avoid a Lehman-style “liquidation event,” he thinks “the market is just liquidating, irrespective of whether the powers that be want it or not,” and with that, “the world is going to start focusing back on precious metals. We’ve had one Minsky moment in Greece and we’re going to have another one. As these Spanish yields and Italian yields move up here, it will become a Minsky moment in those countries as well.”
As for the recent decline in gold and silver, Sprott says that he thinks it “was engineered because when you look at the physical aspects of gold, they seem totally different than the paper aspects of gold. The major dealers, who have now massively covered their short positions, orchestrated the takedown in the face of fundamentals that were just screaming to buy gold and silver.”
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