Billionaire Sprott – The Bank Of England Gold Vaults Are Empty

As the gold and silver smash continues for a second day, billionaire Eric Sprott warned King World News that the Bank of England gold vaults are empty and there will be a price to pay for what Western central planners have done.  The Canadian billionaire also warned about the banking system.  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.

Sprott:  “We have the Chinese coming in and buying an extra 1,500 tons (of gold).  We will have a GLD metric that could be as much as 1,000 tons just this year, year over year.  The Indians haven’t changed the laws yet but I think that will be forthcoming, and they can get back into normal buying mode….

“We know that production is likely to fall off because of the lack of financing, the difficulty of getting projects approved, the unwillingness to go into projects, and the massive decline in exploration.

So if you look at it from a longer-term perspective, you can see that all the catalysts are in place.  In terms of the immediacy of something, it’s going to be a failure to deliver.  I don’t know where it’s going to occur, but it will be a failure to deliver somewhere.”

Eric King:  “It almost sounds like you feel that failure to deliver is imminent.”

Sprott:  “It’s hard for me not to think it’s imminent.  When I got into the gold market back in 2000 I read Frank Veneroso’s gold book.  He suggested that the central banks, who said they had 35,000 tons of gold, probably only had 18,000 tons.

These numbers all reek of the suppression of the gold price and tell you the game will have an end date. I think we might be very close to that end date now. I know lots of your readers and listeners will have seen a comment by some reporter from Bloomberg who suggested that the Bank of England’s vaults were empty now. [LAUGHTER.]

A lot of the policy to keep the gold price suppressed is not going to work.  How could anybody honestly believe that inflation is only 2 percent?  It’s so ridiculous, and even the public is now realizing it’s ridiculous.  The central planners have played a game that hasn’t worked, and there will be a price to pay.

Full article: Billionaire Sprott – The Bank Of England Gold Vaults Are Empty (King World News)

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