Wednesday, October 23, 2013

Eric Sprott of Sprott lectures the World Gold Council on gold demand

Sprott Globule Resource Investments Ltd. - Dear WGC executives, you suck and GFMS sucks.

Eric the Half-a-Bee asserts that core gold demand is 5200 tons a year, approximately 3000 tons more than yearly mine supply, and GFMS is woefully under-reporting demand.

His methodology seems to involve re-calcing everything from an ex-domestic-China perspective, and looking for non-GFMS data whenever possible. OK, that's fine, assuming China doesn't start dumping gold on the world market.

But in general, given his data, the fact that any house Sprott-sized or larger could arrive at the same result, and the fact that Sprott is a goldbug, I'd have to ask why the price of gold has fallen down to $1300 if what he says about supply-demand is true.

I question his methodology and would want to see his work before believing him.


  1. I think it's awfully nice of you to even give the guy play on an otherwise sane blog. He's the Ted Cruz of goldbugs - reality never intervenes in his one man campaign to fuck everyone everywhere. In Sprott's case it's just investors, as opposed to the entire U.S. and possibly world population.

    1. My sincerest apologies. This blog is out to fucking lunch. Feel better?

    2. I can't swear any more here? That was half the fun. :^(

      In other news, a sane man (does he have a sane blog?) has decided to argue with goldbug whackaloons. Film at 11.

  2. Ummm.. Did Eric not advise the silver miners to hold their retained earnings in the form of silver bullion in their vaults back when silver was like $35-$40/ounce. Did he not come out with that call after selling more shares in his PHS.U? I wonder what miners took up that advise?

    It is called the futures know the market where you can sell something that does not exist until the future and you can roll that non existing thing going forward for ever and ever into the future because it does not exist and it is non perishable.