Central Banks’ Gold Likely Gone-Eric Sprott

By Greg Hunter’s USAWatchdog.com  

Money manager Eric Sprott says, “The central banks’ gold is likely gone with no realistic chance of getting it back.”  Don’t expect this revelation to get any coverage by the mainstream media.  In an interview last week, Sprott’s analysis was met with words such as “gold bug” and “conspiracy theory.”  Sprott answers that sort of disrespect by saying, “We’ve had so many conspiracies, I don’t know why anyone would think this was unusual.”  To back up his point, he named “LIBOR, electricity markets in California and the Madoff” scandals.  Sprott’s analysis shows a “flat supply” and at least a “2,500 ton net increase in gold demand” since 2000.  “Where’s all the gold coming from?” asks Sprott.  He says Western central banks “. . . keep supplying this market with product in order to keep the price down so nobody knows how vulnerable the situation is.”  Sprott, who manages nearly $10 billion in assets, boldly proclaims, “We have a shortage of gold.”  Join Greg Hunter as he goes One-on-One with Eric Sprott of Sprott Asset Management.

(Click here for Eric Sprott’s recent analysis of the gold market in reference to the central bank holdings.)

(Click here for interview with Mr. Sprott last week on Bloomberg TV.)    (I think this disrespects his analysis.  Remember, he runs a $10 billion fund!)

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  1. Art Barnes

    Greg, WOW! What he said in short was that we have a shortage of gold that is being covered up by the FED. If it were known I know gold would go up fast and furious but would that also create a run on the dollar; to get out of them, remembering the dollar is not tied to gold any longer?
    Your thoughts to an ordinary Joe who didn’t study MSM’s economics.

    • Greg

      Art Barnes,
      You probably still need some dollars, especially if we have a big run up in gold. This is short term though, as the dollar (as we know it now) is toast.

  2. AndyB

    Greg: great catch getting Eric. Even though Sprott is always (understandably) “talking his book”, you can not argue with his organization’s expertise in, and analysis of, the PM sector. It is interesting that, for this reason, you rarely, if ever, see the propaganda and disinformation FED sycophants attack Sprott in any direct way.

    • Greg

      Yes he is talking he is talking book, but his money and assets are where his mouth is. Thank you for you participation here!!

  3. ManAboutDallas

    Disrespect? From Bloomberg ? I’m shocked…. shocked, I tell you ! ( Best Capt. Louie Renault impression )

  4. Charles Savoie

    Sprott, though wealthy, can be trusted; meaning, it’s extremely doubtful he’s a member of any of the typical banking organizations—the public ones, and one in particular not known to the public (“Pilgrims Society,” Volcker and Kissinger are VP’s). Sprott’s counterpart to the South is Hugo Salinas-Price, and to an extent, Carlos Slim-Helu. These men are sources of pain to the Anglo/American banking phalanx which has fought precious metals since 1572, when Francis Drake started seizing Spanish silver. His March 1, 1579 raid, netting 80 pounds of gold, 26 tons of silver and an unknown quantity of emeralds, is estimated to have netted “investors” 4,700% return, after the Crown took an unspecified, but presumably large, share. Those 16th century “investors” were antecedents of British banking groups formed in successive centuries which have suppressed metals, especially silver, so the British fiat system could be imposed on many nations who otherwise would have had their own mined coins. The Americans today remain junior partners in this vile scheme.

  5. George

    WTF!!! “Oh, we did an audit. The gold is there” the government tells us. What kind of gold were they counting? Paper gold? It sure is hard to make a coin out of paper. These guys at the Fed Reserve have been looting us since 1913. It looks like we would have caught on before they stole everything.

    • Greg

      Thank you George and Gary.

  6. Gary

    Thanks for this interview, I always like to hear what Sprott or Embry have to say. You frequently ask your guest that if there’s going to be a crash, when it may happen? What’s your take….when do you think the jig is up?

  7. Stan

    Hey Greg,

    Im building a greenhouse for my garden and I just bought some more gold and silver. Thank you for your efforts to get the truth out. You are making a difference in peoples lives.

    • Greg

      Thank you Stan. I don’t see how you can go wrong doing what you are doing.

  8. Ted Kramedas

    On one day alone, a few months ago, contracts representing 500 tons of gold were dumped
    on the market to force the price down. To buy 500 tons of gold on the open market to cover
    those contracts when they come due, would have impossible in todays market without
    causing the price to surge dramatically. Only a Central Bank could have supplied that much,
    and if that was just one days dump, massive amounts of gold must have left the central banks
    by now.

    • Greg

      Thank you for adding your analysis here!!

  9. Derrick Michael Reid

    BHO and Bernake, the Fiat paper money and income taxes the means, are enslaving us all as tax mules or dependents, and power concentrates in DC.

    “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world’s greatest civilizations has been 200 years.”

    Alexis de Tocqueville 1835

    Alexis is wrong. Had the US Government stuck to “limited government” per the constitution, our democracy would have survived. Currently, there is no choice.

    Solution for the ages and the masses, for Capitalists, Consitutionalists, Traditionalist, Conservationists, Socialists, the communists be damned.

    1) Only a national consumption sales tax. (Pay and forget, IRS thuggery liberation, and reduced pressure on the environment

    2) Only a state in rem property taxes. (Simple, and does not conflict with federal pledary power)

    3) Abolish the FED, fiat paper money and replace with real money gold and silver coinage. (And force budgetary discipline and liberate free market forces.)

    4) Abolish all social programs at the federal level. (And return those powers to the states, restore the republic, and let the state provide any level of social services desired by the local state sovereign governments run the safety nets, to prevent the moral hazzards across the country.

    5) Eliminate the National debt by default to redemption in bullion, outlaw deficits and government bonds, except war bonds.


      we are not a democracy! we are a constitutional republic! do you even know hat that means?

      • Greg

        Thank you for all your comments,


    Hi!, Patrons Of USAW;atchdog.com Et Al:

    In my opinion Mr. Sprott brings to light another example of the uncertainties relevent to the fact that we the people have abandoned the certainties guaranteed by OUR founders in Article 1; Section 10 of OUR US Constitution which calls for specie gold and silver coins circulatng as OUR only money with no paper substitutes allowed. The real inventoy of OUR gold should be found in OUR citizens’ pockets provided by the US Mint for FREE without commission etc. strings attached. One of my deceased mentors who lived through the Great Depression explained that during the Depression he mined gold which he sent to OUR Mint. The mint poduced gold coins for FREE for him and retuned those coins for general circulation. That process too is now burried in various levels of inexcusable mythical excuses that people across this Nation now use to defend the psychopaths that now are ruining OUR Nation using their printing mehtods @ the Federal Reserve. Dr. Frantz Pick, who when alive was the World’s formost currency expert, wrote his book published around 1987, The Triumph Of Gold, featuring on the front a picture of a tombstone. On the face of the tombstone is pictured the sign for the US $. The caption below reads: The US $; An Advanced Obituary! He also mentions in his book tat he owned gold & that he would NEVER sell it @ any price; so that he would always have money. He also called US Bonds: “Certificates of Guaranteed Confiscation.”

    RUSS SMITH, CALIFORNIA (One Of OUR Broke States Going Broker Daily)
    [email protected]

  11. George Too

    One thing I like about Sprott is he does the MATH. He points to what he can quantify, not speculation. Its like the math done by the analyst who outed Maddoff many times, starting 9 years before his ponzi scheme collapsed but was ignored by the SEC because he was connected.Bloomberg is shilling for the money guys. Very disrespectful. A pox on their house

    • Greg

      Thank you George Too and mickey for the comments and passion!

    • jc davis

      Great piont george too. Greg always seems to get the facts without distractions ..just the proven facts. I love it.

  12. Mickey

    Greg, Dr Paul tried his best to get a audit of our gold reserves but was let down by the rest in congress. This should alarm the voters but they are caught up in the promises of free stuff & getting the latest iphone instead of buying a gold coin, it very sad, I see it in my own family!

    People need to wake & look up the meaning of ‘UN Agenda 21’ & what it means to all of us! Dr Paul’s fairwell speech was the best speech I have ever heard, to bad he did not bring up the UN’s Agenda 21 for folks to look up, but it’s very long & full of things most would say it could never happen here! Well who would thought NDAA would have passed? Not me.

    Those who still are suffering in the N East from a lack of planning for such events as a natural disaster are now seeing how great it is to depend on our govenment agencies & Red Cross to help them. Time is short but there is still time to stock up on supplies while you can.

    The signs are showing world wide, we have no ideal when they will shut down parts of the net or all of it, we know every transaction on the net, phones, banking, gun ownership is well kept by big brother for a reason! Was it this week end that JP Morgans EFT(food stamps)servers went down & 1.3 million in FL were out of luck? It seems like the gov is doing tests to see how the public reacts! One day it will be all shut down, then panic will set in!

    The nation is split more now than any time in my life time & it really worries me what will become of my grand children when I can’t convince their parents to get prepared for very hard times or worse, they will buy the newest gagets but no gold or silver or stock piles of food. You know in a crisis some gold & silver coins might save your life, it has through out history.

    Thanks for having Mr Sprott on your show, he tells it like it is!


      want to audit the fed? then get a copy of their combine annual financial report, it’s that simple.

      • Theo

        Actually an audit refers to physical confirmation of the asset.

  13. David E

    I worked as gold refiner for a jeweler manufacturing for 30 years. I would supply them gold from and for their manufacturing process. My gold came from their manufacturing waste products and from Jewelry store scrap purchases from the public. The amount I supplied was far less than the manufacturer needed. Their need was in the level hundreds of ounces per week, thousands of ounces per year. The balance of the gold they received for manufacturing was from East Coast gold banks. What this manufacture would do to get enough gold for manufacture was to “lease” the gold. Only with this “lease” agreement the product “leased” was never returned. Instead the value of the leased material was paid to the gold banks in form of a wire transfer after the Christmas and Mother’s day season. So for the 30 years I was involved gold flowed from East Coast gold banks to jewelry and dental manufacturing. So in my opinion what happened was banks sitting on large deposits of gold turned this over to gold banks which then “leased” this gold. This way a sale of the deposits never needed to be acknowledged on the books. Better yet for the banks they got deposits that they could fractionally reserve and loaned out at 10 to 1 ratios. The gold the banks supposed have is at the same place where the Social Security “Trust us” funds are kept. The gold is gone and replaced by a scrap of paper.

    • Greg

      Very good info from the real world David E. Thank you for posting it here!

      • jc davis

        Woe. This is news to me. One man with One story. If this is fact this is more proof the Gold reserve (cant) be at the fed reserve banks. David E could you expound more on this?

  14. dean

    Dear Greg,

    I am baffled like I think you seem to be that they can keep this thing going. I would not be surprised If I woke up tomorrow and this whole rigged PONZI SCHEME was collapsing .
    I have heard it said, ” A people of sheep will get a government of Wolves “. I think this a big part of the problem . Thanks to people like you the masses are waking up.
    Would it be possible for you to get an interview with Jim Sinclair ? You two would be a great combo . I love you both .

    As always many thanks to you for what you do !!! Best Dean

    • Greg

      I have asked many times but Mr. Sinclair is not doing any interviews right now. Sinclair is very bright and nailed this calamity years ago. I would do whatever he said to to to pprotect your assets. he said years ago to just buy physical gold (and silver) and sit tight. Right again and He will be correct about gold going first to $3,500 and on past $12,000. Anyone who bets against him in the long run is a fool. Thank you for your suggestion and for your support.

      • dean


        Since he posts and links your stuff I will ask him myself and see if I can get him to change his mind.

        Best to you as always ! Dean

      • Tony

        Hi Greg,

        I was wondering if you could comment on the link below, this article appears to be an interview with Mr. Sinclair & the Futures Magazine, dated May 2012.

        This article goes into great depth about the state of the economy & Mr. Sinclair apparently states that gold prices will never go beyond $2111.00.

        My researched has influenced my thinking that gold could go to $10000, though this article has somewhat dimmed this view.


        Regards Tony

        • Greg

          Jim Sinclair has repeatedly said in that gold is going to $3,500 per ounce in the intermediate term and has also said it will go past $12,000 per ounce in the longer term. He quotes the $3,500 number on a weekly basis in his website JSMinset.com. Here’s a link to his home page: http://www.jsmineset.com/ I would never bet against Sinclair in the long term on anything dealing with gold. He has made some enormous calls on gold dating back to the 70’s that can be documented. I hope this is what you were looking for and thank you for your comment and question.


      so what we will have is a flock of awake sheep.

  15. Virginia Simson

    I adore Eric Sprott. TY for posting.

    • Greg

      Thank you for commenting Virginia.

  16. Larry

    We all need to remember, “you can fool some of the people some of the time, but you can’t fool all the people all the tiem. Ignorance will not win out over time. Gold will go to fundamental value. Amen.

  17. gary

    I was wondering why Eric has gotten off the silver bandwagon that he helped create. Its all talk about gold you mentioned in the interview he couldn’t talk about silver is that good or bad news

    • Greg

      He’s not off the silver bandwagon, he could not talk about silver because of an impending silver deal. Regulations say he cannot comment on silver.

  18. BOB D

    U-Tube , The Money Masters How International Bankers Gain Control of America. It’s over three hours long but was full of interesting history.
    At the end of the lesson , the guy said once they talk about going back to the gold standard , it means the Bankers got most of the gold.
    The guy said Reagan check out about going back to the gold standard. Reagan ask the Treasury, they said they had no gold and that the Fed. had claims on it.
    This video was done about 1998 before 9-11. I would like to hear what you think of it Greg. I’m just a old country boy but always been interested in the ways of the world.
    I think the Bankers are losing the master plan. 9-11 was the kick off and it failed , 10 years of worthless wars but they didn’t get control.
    We will dig out and America will over come the NWO.
    Obama is finding new friends and Congress is working on a Bill to open free trade with Russia.
    Russia hates the international Bankers, so this Congress Bill is a good sign they are losing control over us.
    Money is cheap, a good time to write the International bankers off. Then rebuild and put the people to work on cheap money, maybe interest free money.
    Gold is just a metal we have computers and mathematics. Gold has a place but as information of a mans worth,it’s time has pass.
    The people will break the gold chains of the money changers. Peace

  19. Vess

    Never forget that most of the gold traded on the markets is paper gold – mostly futures contracts. What he says would be valid if every futures contract resulted in delivery – but that isn’t the case. Most of them are just rolled over. So, most of the gold is still where it has always been – in the bankers’ vaults. Rest assured, they don’t intend to part with it. Just the opposite, they are likely to acquire more. Some day, when the game is up, the futures exchanges will force cash settlement (in debased currency) for the gold contracts and that would be it.

    Also, Mt. Sprott manages a physical gold closed-end fund and is probably just drumming up support for it. The guy is a marketing genius, judging by the premium his funds sport to spot prices.

    • Greg

      Sprott’s overall track record is stellar. I suspect the premium issue will work out well for long term investors.


      a men brother! if you do not have the gold in your hand, than it’s only a promise to pay, and they can default and pay you with devalued currency. i will take actual oz. over paper any day, because there is no chance of default.

  20. David

    Another good one Gregg, thanks a lot.

    • Greg

      Thank you David, Kenny and Silverbug for the comments.

  21. Kenny

    Great interview, based on the kind of objective analysis of the overall situation that’s required. What concerns me about holding physical gold & silver is something that doesn’t get talked about all that much, that being that an increasing loss of faith/confidence in fiat currency leading inevitably to higher PM prices will encourage banksters & bureaucrats to think about methods of confiscation and/or perhaps a swingeing sales tax levied specifically on PM sales. How can the little guy with only a few ounces of gold and a bit more silver protect him/her self from this? You can’t very well move your tiny stack to Singapore like Marc Faber advises. Also if the $, £ and Euro are going down then how exactly do you profitably realize your PM asset(s) come the day?

  22. Silverbug

    Once again amazing interview Greg. Keep up the good fight. Eric Sprott is a legend in the Gold and Silver community.

  23. sturmudgeon

    Thank you, Greg. Newcomer to your comments, via JSmineset.

    Important stuff! I, too, have no success attempting to alert my family/siblings… extremely frustrating in relating to the ones you love.

    • Greg

      Just work on protecting yourself. Your family will need you desperately in the future.

  24. stalin

    Greetings from ukraine? Greg, thank you for doing your job.

    • Greg

      Thank you for your kind words Stalin from nearly half way around the world.



  25. kerry bates

    good interview with the always informative Eric Sprott. The term “conspiracy theory” is used by those who,

    1) don’t have an explanation for what is occurring or

    2) they are trying to a. hide facts; b. suppress truth, or c. protect their big advertisers.


    • Greg

      Thank you Kerry Bates.

  26. Michael Riley

    Dear Greg,
    American Govt (Federal-FedReserve-Congress-President) have jumped off the Cliff of Credibility! I know they are lying when there lips move! This may seem an extreme statement, but just look at the $200+ Trillion in net present value of unfunded liabilities, the Fast & Furious crime, the $800 Billion megafelony agreed to by Congress & Tr Sec Hank Paulson, etc etc etc. Also recall the $1.5 Trillion annual deficits, which would be perhaps $5 Trillion using GAAP standards.
    I am ALL IN for gold-silver-copper-coal-oil.
    All the best,

    • Greg

      I don’t see how you can go wrong this those investments. I think the weak links are the brokerages. Who knows how they will perform in a meltdown, but some will go under–that’s for sure. please keep that in mind. Thank you for the comment.


    do not buy paper gold, always get the real stuff. if you do not believe me than go ask gerald celente.

    • Theo

      Yes. Didn’t Celente lose money in the MF Global fiasco?

  28. Bill

    I encourage everyone to watch the free youtube video –

    “The Money Masters – How International Bankers Took Control Of America”

    and tell everyone you know about it. It explains very well how the central banks were established and have been corrupting the currency for hundreds of years.

    Ask 10 people at work if they know what “fractional reserve” banking is and I bet dollars to donuts ( great example how inflation killed the dollar – that used to be a 3 to 1 ? bet ,now adonut IS A DOLLAR ) and I would say not 1 in 100 people – if that – know what it is.

  29. Dave

    Greg, thanks for getting this interview out there. It is amazing to me how many people have their heads in the sand. I own a small coin store and we are selling the heck out of gold and silver to informed, common sense people all day long, but there are soooo many who are out there like a leaf in stream just floating along as the “river” (government) takes them. I loved the interview and of course I have heard much of what Mr Sprott has said here, but what I would love to hear at some point is what he did not say here. Or more direct, what he “couldn’t” say here with regard to his “silver deal”. I think most people here at this site know that there are as many “shinanigans” in the silver market as there is the gold market, and for many, silver is much more affordable than gold and they will be able to make a play in silver if gold is out of financial reach.
    I look forward to an interview with Mr Sprott and his words of wisdom on silver at some point down the road.
    Again, thank you for exposing the truth as so few will do today !

    • Greg

      Thank you Dave for your comment and support.

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