Eric Sprott, Founder and Chairman of Sprott Asset Management, said recently that he expects a “significant re-rating of the gold price” due to high physical demand from China and India, coupled with a gold supply shortfall. The effect, which he calls the “Chinese Gold Vortex,” is rapidly taking physical gold from West to East. When the West runs out of gold, the price should go much higher, he believes. I recently spoke with him on the phone about his near-term views.
Hello Eric, what do you see happening today in the metals markets?
Eric Sprott: I am very excited about developments in the gold and silver markets today. I have been speculating since late 2012 that