Sprott Sees Gold Bullion at $2,000 March 12/08
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Eric Sprott, who is a well respected fund manager in Toronto, says that the turmoil in the global credit markets may result in the collapse of a North American bank. In the same breath, he sees bullion prices possibly rising to US $2,000 an ounce, as investors rush to that safe haven. He further predicts that the decline in banking and brokerage stocks will only get worse, saying that we’re in a systemic financial meltdown.
To make matters even worse, he claims that there are probably companies that are broke that are still trading. Here, he’s talking about banks and financial institutions. He expects the global financial system to endure increased pressure, as banks struggle to raise money to compensate for losses incurred as a result of asset write-downs.
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