$400 - $1,000 Silver?

Here's a link to King World News Blog. Some pretty interesting information.
king world news Blog 

Today billionaire Eric Sprott spoke with King World News about whether or not it is possible to see the price of silver reach the astonishing levels of between $400 to $1,000 an ounce.  The Canadian billionaire also discussed the gold market and the day that China buys gold but can’t get delivery.  Below is what Sprott, Chairman of Sprott Asset Management, had to say in Part II of a remarkable series of interviews that will be released today.

Sprott:  “I hope that we find out that there is no gold left because I think we are dealing with the bottom of the vaults.  Jams Turk was making a comment that we are starting to see 1960s bars showing up at the refineries.  Well, that’s just because they are getting to the bottom of the barrel....

“So I think the outlook is stunning for all of the metals.”

Eric King:  “You brought up James Turk.  He has a target of $400 for silver.  Is that realistic?”

Sprott:  “Eric, it’s always tough to answer a question like that because we don’t know what the authorities are going to do.  Even my partner Rick Rule suggested, ‘Well, you can default on some things.’  And we know there has to be some form of default.  We say either ‘We can’t afford to pay you’ or ‘We’re going to depreciate the currency and we are going to pay you with devalued currency.’

But if they take that second option where they are just devaluing the currency, the price (of silver) can go anywhere.  There is no limit where something that’s in demand and real can go relative to these fictitiously valued currencies.  So of course silver could go to $400.  It could go to $1,000.  If we get into some hyperinflation, who knows what the number could be?

But if you ask just ‘What would you rather have, a $20 bill or an ounce of silver, or $1,300 in notes or $1,300 in physical gold?,’ I think the answer is a very simple answer when you realize what’s going on today.  It’s funny that we have to put up with this two years of nonsense that’s gone on in the paper markets, but most of the people you interview, who foresaw these things many, many years ago and participated in it as you and I did, just know that the day is coming when we are going to see some huge moves in the price of gold -- not withstanding the CME's trying to limit them at the time.

That is not going to work.  They will probably default.  Someday the Chinese will put in an order in (to buy) and there won’t be any gold, and silver could disappear so quickly, (laughter ensues), or platinum or palladium.  There is hardly any production per year, and what production there is, probably a third of it is on strike right now.  So I think our day is coming.”