As the gold and silver smash continues for a second day, billionaire Eric Sprott warned King World News that central planners are in the final death throes of trying to keep things together.  Below is what Sprott, Chairman of Sprott Asset Management, had to say in Part I of a remarkable series of interviews that will be released today.

Eric King:  “Eric, we are seeing a huge smash in gold and silver — your thoughts on what is unfolding.”

Sprott;  “Well, Eric, we’ve seen this before.  It’s interesting that we end QE3 and everybody thinks it’s the end for gold, but the next day Japan ups their QE, and yet gold gets smashed again….

Continue reading the Eric Sprott interview below…


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“…It’s funny, Eric, when I look at what’s going on in the financial markets.  In fact, I was reflecting this morning that it’s almost like Nasdaq (in the year) 2000 — where everyone is in buying because theoretically the money printing is going to help stocks.

And the market can be so wrong for so long, and all the sudden we get this reversal of action.  And when I look at what’s going on in the economy, I think it’s just totally depressing what’s happening to world economies.  We know Europe is going into recession.  We had consumer consumption in the U.S. that was negative .2 percent for September.  

The housing market is weak and getting weaker.  The average person’s costs are going up.  I keep hearing about healthcare costs that are going to go up by double-digits next year.  So it’s pretty hard to imagine things getting better going forward.  We keep getting disappointing earnings from bellwether companies, whether it’s McDonald’s or Starbucks.  

It’s very tough out there, and of course it’s tough out there because we’ve all been misled on inflation and job growth.  I look at the whole job growth thing and all I ever think about is, OK, we’re converting from full-time to part-time jobs and the part-time worker only works 29 hours.  So he (or she) has to go and get another job in order to work a 40-hour week.  The bottom line is personal income is not going up and on a real basis it’s undoubtedly going down.

So I think the market is hugely misinformed here and I obviously think that the precious metals markets are hugely misinformed.  So we are getting very close to this (ultimate bottom).  I am shocked at what’s happened here, particularly when we end QE one day and we start another one the next day but gold goes down both days.  And I think the most ironic thing is that copper is still hanging in above $3 when it’s an industrial metal. (Laughter).  

And silver, which is also an industrial metal, which has way better industrial applications growth going on than copper has, I’m just stunned at what’s happening (to the silver price).  Maybe we are in the last death throes of the central planners trying to keep things together here.  But certainly anything I see in the physical market is nothing but constructive for precious metals owners and we just have to be patient waiting to get there (to the ultimate upside explosion of this secular bull market).

…And maybe the markets even shut down.  That would be the worst thing — everything just shuts down.  That’s what I worry about, that one day we are just given this jolt.” This is one of Eric Sprott’s best interviews ever and it will be available shortly.  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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IMPORTANT – KWN has many more interviews being released today.

The audio interviews with Bill Fleckenstein, Rick Santelli, Rick Rule, Michael Pento, Paul Craig Roberts, Andrew Huszar, Andrew Maguire, 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.

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