Hedge funds slash bullish wagers on gold before war jitters
Speculators have reduced net-long positions by 3.6%.
Billionaire precious metals investor Eric Sprott says there will be insufficient silver on the market to satisfy demand as the US dollar and other currencies “decline materially” due to the profligate government spending.
In an interview with King World News Sprott says currency decline is an endemic global problem as governments overextend themselves fiscally, with investors rushing into precious metals such as gold and silver as a consequence.
Sprott, who is at liberty to finally discuss the silver market following the closure of his latest silver offering for around nine million ounces, says that investors are displaying a growing predilection for silver as a safe harbor investment, especially given its myriad industrial applications.
Sprott believes it is highly likely that the amount of bullion available on the market will be unable to satisfy rising demand:
We ended up buying about 47 times more silver than gold, but it’s only available 7/1 for investment because most silver has to go into industrial uses. I just believe the consumer is speaking with his wallet. They like buying silver, and there just, ultimately, will not be enough silver to satisfy all that need.
3 Comments
sailormac
Baloney
Marvin Charbonneau
Gee ,I cant tell you gave this a lot of thought.
sailormac
Does your ad hominem retort mean – It isn’t baloney ?!