Wednesday

You've Got to Own Hard Assets Like Gold and Silver

“Even when I look back to the US and how we came out of 2008 -- we’ve got an extra 20 million people on food stamps. There are no real signs of real growth here. I just think that people will figure out that we have all been boondoggled on this thing, to believe that something positive is happening, when in fact very, very negative things have been happening.

The Fed’s balance sheet has blown out. We never did restructure the banking system. We see that the European banks would have to raise $1 trillion in certain circumstances. And I can just imagine if they actually came to market (for $1 trillion) what the prices of the bank stocks would do -- they would just collapse because I don’t think there is $1 trillion that wants to go into European bank stocks.

So all of the problems that we had in 2008 are still around, except magnified now. So that’s the big concern -- that we all find out it was just a big Ponzi scheme and the market breaks. It’s the same decision I had to make back in 2000, before the Nasdaq crash, when I thought, ‘Boy, it looks like the Nasdaq is going to crash. What am I going to do?’ The obvious conclusion was you’ve got to own hard assets -- things like gold and silver.”

- Eric Sprott via King World News: