Friday, February 12, 2016

The Focus For Investors

The most important thing is that roughly 97% of stocks are in bear markets throughout the world."

Originally only a few stocks in the US were holding things up, and now they're all getting crushed. In 3 months it would be no surprise to see every stock in the world being in a bear market. Furthermore it's unbelievable to think you have a stable economy when oil prices are under 30. There are so many areas of falling prices; hitting or nearing all-time record lows.

"I do not have much hope for the economy right now; the stock markets are reflective of that."

The whole issue of medical care in the US is being swept under the carpet; there are significant expenses for too many people. We need to be very careful about equity and bond investments. If you begin with the premise that the US is broke, you have $85 trillion of unfunded liabilities and a GDP of 18 trillion that says enough right there; it's a joke.

This is why I preach to own precious metals because they will survive a financial meltdown. Risk mitigation is critical, but you have to understand all the elements of risk. It is phenomenal the risk that you will be taking in turn for the yield you're expecting.

Tuesday, February 9, 2016

2016: What Lies Ahead

"There is nothing constructive to say about the financial Ponzi we have gone through since QE and negative interest rates were initiated."

By knocking interest rates down to zero and in some cases they're negative, savers are getting crucified. They get no return on their money. They have to buy the slimiest of assets, US bonds receiving 2%.

QE, printing of money will not do anything for the economy. We saw this with japan for the last 30 years. QE was only in place to inflate assets prices and we are all going to pay the consequences for that. It's shocking that the market has held up as long as it has, and even more shocking is that during this whole process policies are so irresponsible that precious metals are not getting enough attention. I feel like a lone wolf believing that people should be in precious metals to protect themselves against this recession.

Friday, February 5, 2016

Rick Rule: 2016 Will Be Painful for Commodities

Wall St for Main St interviewed Rick Rule, who is the President of US Sprott Holdings. In this podcast, we looked back on 2015 and discussed the energy market, precious metals market and the economy. Rick also provided his insights on what he thinks will happen in 2016 in the commodities sector. Plus much more!

Sunday, January 31, 2016

Sprott Breaks Through to Gold Trust Holders

John Wilson, CEO of Sprott Asset Management, joins Bloomberg TV Canada’s Pamela Ritchie to break down the asset giant’s deal to purchase Central Gold Trust. (Source: Bloomberg)

Friday, January 15, 2016

Precious Metals and Black Gold

Not to put a number on it, but I believe for the last 15 years the demand for gold has been well above supply and central banks have superficially provided the extra supply. The physical gold market may overwhelm the paper market, if or when it does you can imagine a recession or depression or even a currency crisis which is happening throughout the world.

For oil, when you ask questions about markets that are dominated by paper and the influence of central planners it is difficult to give an answer that makes much sense. Ultimately, oil should be going back up; very few entities can produce at $30/barrel. Sooner or later we will see shutdowns, and once that happens it will be highly unlikely for a restart until prices are at a profitable amount.

Saturday, January 9, 2016

Barkerville drills up out of a hole

Just one year ago, the hole that Barkerville Gold Mines Ltd. (TSX-V:BGM) had dug in the Cariboo mining district was starting to look less like a mine and more like a grave.
The company was deep in debt, its shares were in a downward spiral and its credibility was in tatters, following a year long cease-trade order imposed by the BC Securities Commission in 2013 over a dubious resource estimate made by company founder and former CEO Frank Callaghan.

What a difference a year can make.

The company is now debt-free, has raised $39 million in new investment, has been running three mill operations around the clock, and plans to restart its Bonanza Ledge mine in 2016.

“We were mired in debt and we had a $19 million debt obligation,” said Barkerville’s new CEO, Tom Obradovich, who was brought on board in January 2015 following Callaghan’s resignation. “We subsequently cleaned up the mining that was being done from a losing venture to a cash-positive venture.”

Thanks to a lifeline, in the form of a $15 million loan, thrown by legendary Canadian investor and gold bug Eric Sprott, the company was able to stay afloat long enough to get its finances in order.

In January, Obradovich, a key player in Aurelian Resources Inc., which was acquired by Kinross Gold Corp. (TSX:K), was brought on board, and other mining executives with proven track records are also being brought in.

One of the first things Obradovich did was shut down Barkerville’s small underground mining operation at Bonanza Ledge and sell off all the gold that had been mined there – about $22 million worth.

The company converted the Sprott debt to equity, giving Sprott a 41% stake. In June, the company was able to attract another key investor – Osisko Gold Royalties Ltd. (TSX:OR).

Osisko did a $6.9 million financing in June for a 7% stake, followed more recently by agreement for another $10.2 million to bring its position to 19.9%. Osisko also recently signed a $25 million royalty agreement for 1.5% of Barkerville’s future gold production. The company also recently announced another $3.5 million in a private placement with Sprott.

Monday, January 4, 2016

Here's How To Ask Sprott Global For Money

The document came about as a consequence of me watching many of our clients make mistakes investing. I watched our clients interviewing issuers (companies) at investment conferences and saw that the process they were going through in terms of accessing information to make investment decisions was faulty. What I tried to do was put together a guide that somebody could understand in an hour or less that would simplify and codify the process.

An issuer or an issuer’s agent who reads that same guide will be able to understand what is important to Sprott in 20 minutes or less. They will also be able to understand how to answer our questions efficiently.

If they don’t have the ability to answer those questions efficiently, they’ll know not to begin the process because it would be a waste of their time and ours.

Friday, December 25, 2015


Eric Sprott, Chairman of Sprott Inc joins SGTreport for a detailed analysis of the economic breakdown of the global economy, and the latest Black Friday gold and silver smash.

On the cartel manipulation of the metals: "I don't when it ends, that's the unanswered question that we all struggle with here, but we all know ultimately what's going to happen and if you have the ability to hang in there, I think there's a huge pay day here at the end of the line because we're in a financial Ponzi scheme, and we know the end result of those things."

Thanks for joining us.

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