Monday

Recent Price Drops in Gold Bizzare

Eric Sprott, CEO of Toronto-based Sprott Asset Management, says gold’s price has recently dropped because faulty statistics underreport demand and overestimate supply.

In October he wrote an open letter to an industry group, asking them to change the way they calculate supply and demand for gold in a way that would make the metal seem like a hotter commodity.

“This lack of quality information has certainly been one of the driving factors behind the lack of investors’ confidence towards gold as an investment,” he wrote.

In an interview, Mr. Sprott called gold’s recent drop in price “bizarre.”