Wednesday, August 17, 2016

Eric Sprott and David Baker: When fundamentals no longer apply, review the fundamentals

April 30, 2012 by · Leave a Comment 


9p ET Friday, April 27, 2012

Dear Friend of GATA and Gold:

The U.S. and European economies are still sinking, money is rushing out of Spain’s banking system, and demand for physical gold is exploding and will blow up the paper gold market before long, Eric Sprott and David Baker of Sprott Asset Management write today in the company’s “Markets at a Glance” commentary. Sprott and Baker write:

“We have written at length about the disconnect between the paper gold price and the physical gold market. If the demand changes stated above applied to any other market, the investing public would lose their minds. Could you imagine, for example, if the demand shifts described above were applied to the global oil market? What would happen if a single country came in from nowhere and increased its oil purchases by a factor equivalent to 30% of the world’s annual oil supply? We are students first and foremost of the physical market, and the numbers stated above speak for themselves. We remain confident about gold for the simple reason that the demand we are now seeing for physical is completely unsustainable without higher prices, and we do not see that demand abating in the coming months.”

The Sprott-Baker commentary is headlined “When Fundamentals No Longer Apply, Review the Fundamentals” and it’s posted at the Sprott Internet site here:


CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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