Today Rick Rule told King World News that the most massive and most intelligent pools of capital on the planet are now looking to crowd into the gold and silver space. This is huge news for a sector that has been in a state of consolidation for over a year, and strongly supports the thesis that 2013 will be a banner year for gold and silver.

Rule had this to say about this extraordinary development: “The things that support the thesis, particularly with regards to the gold equities, has been the approaches Sprott (Asset Management) has gotten from the very largest sovereign wealth funds in the world, and the very largest suppliers of private capital in the world.”

“It’s interesting to see the big money starting to be attracted to the sector. It’s interesting to see that point of view being shared by the largest aggregations of capital on the planet. There are oceans of capital looking for a home.

There are literally trillions of dollars looking for a home....

“It’s going to be a very interesting year next year, and not a bad one at all I think.

The physical market (for gold and silver) is reasonably tight. You’ve seen things like China, which is now arguably the largest gold producer in the world, being the largest gold importer in the world. You are seeing steady physical off-take in a market where the futures markets would seem to be adequately balanced between buyers and sellers.

So you aren’t seeing advances in the long prices of gold. But what you are seeing is continued physical off-take. I think, ultimately, that will be reflected both in the spot price of gold and in the futures prices of both gold and silver. You know we’ve now bought $4.3 billion worth of gold and silver.

I would suggest that within Sprott we are developing a core competency in terms of our ability to time our offerings to the availability of gold and silver in the market. We did have a problem a year ago obtaining silver when one of our offerings raised more money than we had anticipated it would.

But we’ve learned a lot about the physical market for gold and silver bullion. So, at least in the current context, were we to do an offering on the gold and silver side, my suspicion is we would be fairly competent at deploying the capital we raised in equity markets, in (to) the physical markets.”