Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199


Search Gold Prices
Gold Price
[Most Recent Quotes from]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« Hopes rise for Greek debt deal | Main | BENZINGA RADIO: Exclusive Interview with SAM KIRTLEY of SKOPTIONSTRADING »

Eric Sprott - Aggressive Chinese Buying Will Spike Gold Price

Just in case you missed this, we spotted it on Eric Kings site, King World News, which is well worth a few minutes of your time, in our humble opinion. We have mentioned KWN on more than one occasion so hopefully you have book marked it by now, haven’t you, yes?

Today billionaire Eric Sprott told King World News the Chinese cannot continue to buy gold as aggressively as they have been without there being a dramatic increase in the price.  Eric Sprott, Chairman of Sprott Asset Management, had this to say about Chinese purchases of gold and the recent announcement that Iranian oil will be acquired using gold: 

“There are two things I think are important about that.  One, it’s a statement that gold is a currency.  That is by far the most important thing.  I think the other thing is, if it actually transpires that way, what does it mean for the demand for gold?  Because now it’s considered currency, it’s, in essence, your working capital.  You have to have it.  It’s like a store, you have to have money in the till.”

Eric Sprott continues:

“So it’s obviously going to increase the demand for gold and we have seen some data that China has been a rather large buyer of gold.  People will consider it a currency and it has to necessitate more buying.  You know, Eric, I think one of the really interesting things that happened was the imports of gold into China, from Hong Kong, which always were less than 20 tons a month, all of the sudden, beginning about 5 months ago, went 20 (tons), 30, 40, 80 and in November 102 tons.  102 tons is a staggering number.

The world mines, excluding China, less than 200 tons a month.  China cannot continue to buy 102 tons and not have the price escalate dramatically.”

Sprott had this to say about today’s Fed announcement that it will leave rates at zero until late 2014: 

 “Obviously it’s dramatic what has happened.  It would appear there will be no restraint whatsoever on the part of the Fed.  Assuming this announcement causes gold to break its declining wedge, which I believe it has, I expect some serious fireworks to the upside.”

To read this article in full please click here.

Regarding We are off to a good start with our three positions showing profits of 62%, 26% and 2% yesterday, moving higher today to show profits of 67%, 30% and 6% respectively. These are only paper profits as we have yet to close these trades, but they heading in the right direction.

Please be aware that discussions are taking place regarding an increase in the price for this service for new members, so if you are thinking about joining us, then do it sooner rather later in order to avoid this additional expense.

Our model portfolio is up 399.82% since inception

An annualized return of 93.60%

Average return per trade of 36.33%

94 completed trades, 86 closed at a profit

A success rate of 91.48%

Average trade open for 50.61days


So, the question is: Are you going to make the decision to join us today?

Also many thanks to those of you who have already joined us and for the very kind words  that you sent us regarding the service so far, we hope that we can continue to put a smile on your faces.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. Winners of the GoldDrivers Stock Picking Competition 2007  

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our  Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here. 

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>