Eric Sprott: Get Your Money ‘Out of Banks and into Something Tangible’
SilverDoctors.com
September 22, 2014
The most important factor right now is the physical shortage of gold. The declining amounts of gold in Shanghai storage suggest we are getting close. So I expect something to happen in the physical gold markets soon.
I probably have 70 or 80 percent of my portfolio in precious metals right now, and I believe that’s the right amount to have. Time will tell whether I’m right or not…
Since before the crash of ’00, I have thought the banking system was susceptible to pressure. I didn’t want to have my money in a bank because I thought the banks could go broke very quickly.
Fast forward to 2008 — all the banks were essentially broke, as far as I could tell. The Fed came in to support the banking system, which they’ve now been doing for the past six years. And yet, there has been essentially no improvement in capital ratios at the banks and the risk of putting money there. In fact, you now lose money when you put it in the bank because of negative real interest rates – and you still take on the risks associated with the bank.
To me, it’s just totally ludicrous to put yourself in that position when you realize how levered the banks are.
The time to get your money out of banks, & into something tangible is NOW.
The Rest…HERE
