Eric Sprott was recently interviewed by King World News. He discussed the great liquidation event that is coming our way, as well as how this will affect Gold, Silver and more!
To listen to this full interview, go here:
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2012/5/19_Eric_Sprott.html
Monday, May 28, 2012
Wednesday, May 23, 2012
Governments Frightened of Panic Liquidation Event
"Ever since we saw what happened when Lehman was liquidated, they realized we can’t go there. Fannie was taken over as well as AIG and GM to prevent this liquidity event. But I think the market is just liquidating, irrespective of whether the powers that be want it or not.
I just think that process is picking up into a tsunami..."
I just think that process is picking up into a tsunami..."
- Eric Sprott via a recent King World News Interview, read the full interview here:
Wednesday, May 16, 2012
Want to Invest in Gold and Silver? Invest in Sprott
The beating that Sprott Inc.'s shares have taken in recent months may have made them an attractive entry point for investors looking to play a bullish outlook for gold
Forty per cent of Sprott’s $9.7-billion in assets under management are invested in bullion, while the precious metals exposure rises to 70 per cent when one includes the gold and silver equities in its mutual and hedge funds.
Eric Sprott, the firm’s founder and architect of the dominant precious metals theme, is a big believer that the price of gold and silver – as stores of value – will climb as governments debase their currency by printing money to stimulate their economies. While the metals stocks have sharply lagged their bullion peers, the firm argues that these oversold stocks are poised for a rebound.
“We believe that the prime catalyst for this stock continues to be a rally in precious metals equities,” says Scotia Capital Markets’ Phil Hardie. “Given recent weakness, we believe the valuation is now looking quite reasonable for those who ascribe to Sprott’s underlying investment themes.”
Forty per cent of Sprott’s $9.7-billion in assets under management are invested in bullion, while the precious metals exposure rises to 70 per cent when one includes the gold and silver equities in its mutual and hedge funds.
Eric Sprott, the firm’s founder and architect of the dominant precious metals theme, is a big believer that the price of gold and silver – as stores of value – will climb as governments debase their currency by printing money to stimulate their economies. While the metals stocks have sharply lagged their bullion peers, the firm argues that these oversold stocks are poised for a rebound.
“We believe that the prime catalyst for this stock continues to be a rally in precious metals equities,” says Scotia Capital Markets’ Phil Hardie. “Given recent weakness, we believe the valuation is now looking quite reasonable for those who ascribe to Sprott’s underlying investment themes.”
- Read the full article at the Globe and Mail, here:
Saturday, May 12, 2012
What Happens When there’s a Market Setback, and the Derivatives Trigger?
Mr. Sprott is also concerned at mushrooming growth of derivatives. This part of modern finance is based purely on financial vaporware. There’s no relation to creating underlying wealth. For example, one company might have a trading program with a slightly positive bias, and so buys and sells accordingly. Another has a trading program with a slightly negative bias, and so sells and buys accordingly.
The crazy thing is that, despite everybody looking at the same market, the players all think they’re “making money” with all of their in-and-out trading. Maybe or maybe not — although a lot of people extract big money from the Wall Street system. But the whole process wreaks havoc on the idea of creating wealth by investing in the best companies with the best ideas and assets.
All along, derivative exposure is growing. But what happens when there’s a market setback, and the derivatives trigger? There’s no way that all the exposure can ever get covered. There’s not enough money to go around. We’ll see failure in the derivatives markets, and it will likely tank other parts of the world of finance, if not the larger economy.
The crazy thing is that, despite everybody looking at the same market, the players all think they’re “making money” with all of their in-and-out trading. Maybe or maybe not — although a lot of people extract big money from the Wall Street system. But the whole process wreaks havoc on the idea of creating wealth by investing in the best companies with the best ideas and assets.
All along, derivative exposure is growing. But what happens when there’s a market setback, and the derivatives trigger? There’s no way that all the exposure can ever get covered. There’s not enough money to go around. We’ll see failure in the derivatives markets, and it will likely tank other parts of the world of finance, if not the larger economy.
- Source:
Friday, May 11, 2012
In the Long Run the Physical Participants Will Win the Day
"I think it’s counter intuitive. Gold normally doesn’t go up when things are the most extreme. When we had the RTO announcement on Feb 29th, it got crashed, which seemed somewhat counter intuitive. I’m going to fall back on Jim Grant’s statement here on CNBC when he said all markets are manipulated. We know the credit markets are manipulated. I suspect that central banks that are fighting this contagion out there don’t like gold going up. So I think it’s always somewhat counter intuitive. The people who sell paper gold and paper silver can rule the markets over the short term, but I think in the long run the physical participants will win the day."
- Source:
Wednesday, May 9, 2012
Tuesday, May 8, 2012
TrimTabs Talks Gold with Eric Sprott
"TrimTabs President & CEO Charles Biderman interviews Eric Sprott of Sprott Asset Management to get the truth behind gold."
- Source:
http://trimtabs.com/blog/
Monday, April 30, 2012
More Global Shocks Coming!
Eric Sprott was recently interviewed by King World News. In the interview they discuss the inevitable collapse of the banking system. Gold, Silver and mining shares. This is a must listen to interview.
Listen to the full interview here:
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/4/29_Eric_Sprott.html
Listen to the full interview here:
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/4/29_Eric_Sprott.html
Saturday, April 28, 2012
The Ponzi Scheme Continues
“The Ponzi scheme in the financial world continues. Month after month there is a new technique for trying to prevent the dominos from falling. We see that people are doing the logical thing, they are taking money out of the banking system.”
- Eric Sprott Via a recent King World News interview, read the full interview here:
Tuesday, April 10, 2012
Silver is the Investment of this Decade and Here is Why!
Eric Sprott has become Canada's Silver Bull. And he says his conviction has nothing to do with a new fund his company is launching, the Sprott Silver Equities Class. He's a true believer. "It's the investment of the decade," he proclaims.
Why? Let us count the reasons.
1. Demand exceeds supply. Annual production is about 900 million ounces per year, including recycling. Industrial usage alone will rise to 660 million ounces by 2015. That leaves only 240 million ounces for coinage, central bank purchases, and investment. The latter category is huge; as of 2010 holdings of physical silver to back up exchange-traded funds was 577 million ounces.
2. Silver is undervalued compared to gold. The historic silver to gold ratio is 16 to one. The geological silver-gold in situ reserve ratio is 17.5 to one. The current silver-gold ratio is 51 to one. The implied price if silver reverts to its historic ratio with gold at US$1,600 an ounce is US$100 an ounce. The actual closing price on Thursday was US$31.73.
3. The silver price is artificially low. There has been speculation for some time that the price of silver has been kept deliberately low by market manipulation.
Why? Let us count the reasons.
1. Demand exceeds supply. Annual production is about 900 million ounces per year, including recycling. Industrial usage alone will rise to 660 million ounces by 2015. That leaves only 240 million ounces for coinage, central bank purchases, and investment. The latter category is huge; as of 2010 holdings of physical silver to back up exchange-traded funds was 577 million ounces.
2. Silver is undervalued compared to gold. The historic silver to gold ratio is 16 to one. The geological silver-gold in situ reserve ratio is 17.5 to one. The current silver-gold ratio is 51 to one. The implied price if silver reverts to its historic ratio with gold at US$1,600 an ounce is US$100 an ounce. The actual closing price on Thursday was US$31.73.
3. The silver price is artificially low. There has been speculation for some time that the price of silver has been kept deliberately low by market manipulation.
- Read the full article by Guru Focus here:
Thursday, April 5, 2012
Wednesday, April 4, 2012
The Recovery Has No Clothes!
"If we are right about gold and silver as currencies, and if we are right about the continuation of central bank printing, both gold and silver will continue to appreciate in various fiat currencies over time. If there is indeed some sort of manipulation in the futures market that is designed to suppress the prices for both metals so as to detract from the mainstream investor's interest in them as alternative currencies, then both metals are likely trading at suppressed prices today. This means that there is an opportunity for investors to continue accumulating both metals at much cheaper nominal prices than they would do otherwise. While the volatility of the price fluctuations may be unsettling, they ultimately won't change the underlying fundamental direction of both metals, which is upwards."
- Article by Eric Sprott and David Baker, Read the full article here:
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