Money manager Eric Sprott says the economy is going to tank in 2014.
Sprott, who has $8 billion under management, contends, “We have created a situation, yet again, where we pulled demand forward and added debt to everyone’s balance sheet.” Another drag is going to be health care costs and rising interest rates. According to Sprott, “I am sitting here looking at Obama Care and rising interest rates and thinking where are we going to be getting all of this growth that is non-existent. So, I don’t see a strong recovery.” As far as gold is concerned, Sprott charges central banks have little gold left, saying, “The gold’s not there, and ultimately . . . somebody will fail to deliver here. . . . What happens to the bond markets and stock markets when you have to admit that it’s been a fraud the whole time?” Sprott says that the price of gold and silver will both hit new highs in 2014. Sprott predicts, “The price of gold goes north of $2,000, and silver will quickly go over $50, and when it does, it will get a little crazy.” Sprott says, “They know a day of reckoning is coming, and they are setting up for it. . . . I am convinced some sovereign banking systems fail in 2014.” Join Greg Hunter as he goes One-on-One with the CEO of Sprott Asset Management, Eric Sprott.