Today billionaire Eric Sprott spoke with King World News about the recent raid on gold and silver and noted the massive physical silver purchases that are taking place in India. Sprott also discussed what this means for the shorts in the silver market. This is the first in a series of interviews with Sprott that will be released today. Below is what Sprott, Chairman of Sprott Asset Management, had to say in part I of this remarkable series of interviews.
Sprott: “I just read some data on India. It said that India, last year (in the) first five months, imported 1,900 tons of silver. So far this year they have imported 2,400 tons. Now to understand the significance of this I have to tell you that the amount of tons (of silver) mined (annually) is 25,000….
“At 2,400 tons in the first five months, you are basically talking at least 5,000 tons (of silver) for the whole year. That would be 20% of the world’s (annual) silver production. And this is not going into industrial uses. This is going into savings (for investment purposes).
And there is only a certain percent of the silver market which can go into savings because a lot goes into industrial. But here is the ‘piece de resistance,’ they said (India) imported 720 tons in April (annualize 8,000 tons). In May it went to 900 tons, annualized call it 11,000 (tons). We’re going from 1,900 tons (of silver Indians were purchasing) to 11,000 tons, in a 25,000 ton market. That’s impossible. There’s not that amount of silver available for investment.