Monday, June 4, 2012

Eric Sprott - This is a Perfect Environment for Gold

The elevated stress levels emerging as a result of the euro zone debt crisis and further evidence that the U.S. economy may be running out of steam has many investors looking to gold for some summer insurance for their portfolios.
Friday’s disappointing U.S. payrolls report helped drive the metal up more than 4%, its biggest one-day rally in more than three years. The weak data prompted speculation that the Federal Reserve could pursue a new round of quantitative easing, providing further support for gold above the US$1,600 per ounce mark.
Eric Sprott, CEO of Sprott Asset Management, said the recent surge in gold is overdue given the unsustainable leverage among financial institutions and the severe bank run Spain is facing.

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