Gold could surge past $1,920/oz high: Sprott
Billionaire investor and asset manager Eric Sprott says that the ruinous state of the global financial system and a shortage of physical gold could send prices for the precious metal surging past $1,920/oz.
Sprott tells King World News he is highly pessimistic about the state of the global financial system, saying that ‘I don’t think central planners have a winning hand here. They’re not going to win.’
According to Sprott should central banks stop leasing an extra 2,500 tons of gold each year to make up for the shortfall in physical supply gold prices could blow through the roof.
I argue that there is 6,500 tons of demand and 4,000 tons of supply (each year), and the extra 2,500 tons is coming out of central banks that are leasing it. Imagine if they just stopped leasing it. Who knows where the price would go? You would get such chaos (disorderly upside trading in gold).
I can sense it has a lot of upside here. Total chaos can happen when we all realize that on a sovereign basis, the ‘Emperor has no clothes.’ Who knows how high it’s going to go, but we’re not talking about just hitting a new high above $1,920. We’re looking at much bigger numbers.