With the mainstream media celebrating new highs on the S&P and the Dow, and gold and silver trashed for a second day, billionaire Eric Sprott told King World News that it’s the stock market that is going to crash, not gold. Below is what Sprott, who is Chairman of Sprott Asset Management, had to say in Part II of a remarkable series of interviews that will be released today.
Eric King: ‘Eric, we are in the midst of this smash in gold and silver, and we have the stock market and the dollar doing what they are doing. What do you expect for the rest of this year, once the dust settles?”
Sprott: “Well, God knows when the dust settles, but what I’ve expected for a long time now is that the basic fundamentals for gold and silver will win the day. That hasn’t happened yet. It hasn’t happened because entities have financial weapons that they can use on these commodity exchanges and the physical buying hasn’t gotten to a point where we have the failure (of an exchange to deliver)….
Continue reading the Eric Sprott interview below…
“But I think it’s reasonably predictable that we are going to have a failure. All of the demand data and the reasons for owning gold have improved. We all know that zero interest rates and printing money has not provided the answer and won’t provide the answer.
The only thing it does is it allows people to speculate on buying securities, but it’s not helping the economies. In fact, there are elements of the economy that are doing worse. The savers are way worse off today than they were before. They are forced to speculate in order to get returns. By speculating they are taking on greater risk.
But there is no recovery. You just have to take the comments of the various people at companies and they keep saying, ‘The consumer is tapped out here and it’s not likely that we are going to experience much growth.’ So how can you have stocks keep going up when there is no commensurate economic recovery?
But the framework for gold and silver and other precious metals to do well is more incredible today than it’s ever been. And you can have (crazy) readings in these (stock) markets — I’ve experienced it. Going into 1999 – 2000, everyone was buying Nasdaq stocks like crazy. Ultimately the day came when the whole index crashed by 75 percent, and that’s what I think is going to happen here. The stock market is going to crack.
There is no growth and we don’t need to build more plants and equipment because things are cooling down on a worldwide basis, whether it’s China, Japan, Russia or Europe. The U.S. is flatlining at best. In fact I don’t even believe it’s flatlining, it’s probably negative. So there is not much to cheer about in terms of future earnings growth for companies.
Again, I just think that owning paper assets is the worst thing that anyone can do, and they should continue to buy and own physical metals.” This is one of Eric Sprott’s best audio interviews ever and it is available now. You can listen to it by CLICKING HERE. Also, KWN will be releasing interviews all day today with Eric Sprott and Andrew Maguire.
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The audio interviews with Eric Sprott, Rick Santelli, Bill Fleckenstein, Rick Rule, Michael Pento, Dr. Paul Craig Roberts, Andrew Huszar, MEP Nigel Farage, John Mauldin, Egon von Greyerz, Michael Belkin, and Marc Faber are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf — to listen CLICK HERE.