"I think the plan was, let’s knock the hell out of gold and let’s get people to cave on owning gold. The interesting thing was the exact opposite happened. There is not a data point on gold where we don’t see changes in demand by 100%, or even many hundreds of percent.
Whether it’s US Mint sales of gold in April, I think they went up by 1,000%, the Canadian Mint sales are up 128%, we see Chinese data where I think the number was up 300%. I think the World Gold Council said that India would import at least 100% more than they did last year (during the same period) in the second quarter.
So we see all of these numbers are in hundreds of percent change, whereas the supply of gold from the mining side will probably be down. The supply of recycled gold will be down significantly with the price having come off here. So I think that this raid totally backfired, and unleashed a torrent of buying.
And ultimately the physical is going to dominate the COMEX price as determined by a bunch of guys trading paper ... I would encourage everyone to, one, hold tight, two, if they can, increase their position.” - Eric Sprott via a recent King World News interview
Eric Sprott is a Canadian hedge fund manager and founder of Sprott Asset Management. He became a billionaire on paper with the initial public offering of Sprott Inc., the parent of his Sprott Asset Management firm.