If anyone knows gold, it's Eric Sprott. We previously spoke with Mr. Sprott on the subjects of the IMF, GATA, and the Plunge Protection Team.

Needless to say, he's a bull on gold.

Sprott recently sat down with Eric Jackson of TheStreet.com for an interview and what he had to say should have investors concerned.

He says that gold is more popular than ever before, which is fantastic for his fund. The problem is, there's a shortage of physical gold out there and it's only getting worse. After all: you can only mine so much gold but you can always print more money.

TheStreet.com: Central governments were selling gold 10 years ago. This put a burden on a very small market. Today, central governments are buying, the miners are unhedged, you have big gold ETFs, you have coin sales going crazy. Some central banks are even telling their people to buy gold.



I've got to believe that a physical shortage will manifest itself somewhere soon. There's only 162,000 tons of it out there -- and I don't know anyone selling it. Someone's going to try to buy a bar of gold sometime and it won't be there.

Indeed, the gold rush is upon us. Yesterday, COMEX reported that gold hit a record high of $1254.50 an ounce.