Thursday, December 31, 2015

Central Banks Are Getting Down to Fumes



Friday, December 25, 2015

BLACK FRIDAY GOLD SMASH


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.


Thursday, December 3, 2015

Eric Sprott - Central Banks Are Getting Down To Fumes


Excellent Interview With Eric Sprott explaining what's happening in the Gold & Silver Markets and the Day of Celebration is Close at Hand.


Wednesday, November 25, 2015

No Stone is Being Left Unturned

“In times of fiscal prudence, it’s essential to see companies eliminating all unnecessary expenditures,” said Eric Nuttall, a portfolio manager at Sprott Asset Management LP in Toronto. “This whole every second Friday off thing, that’s the most egregious example.”

The changes to incentives at Canadian Natural and ConocoPhillips are according to people familiar with the moves, who asked not to be identified discussing private matters. Kristen Ashcroft, a spokeswoman at ConocoPhillips, said the company won’t confirm specific cost-reduction actions. Julie Woo, a Canadian Natural spokeswoman, declined to comment.

At Cenovus, “no stone is being left unturned” in a broad review of workforce policies, said Brett Harris, a spokesman. Employees currently work longer hours on other days to earn the Fridays off, he said.

- Source, BNN

Friday, November 20, 2015

No turnaround anytime soon for resource stocks, says Sprott CEO

Sprott Asset Management Inc., the Canadian investment firm best known for precious metals, doesn’t want to solely be known for precious metals any more.

The protracted bear market for commodities has forced the fund to diversify its investments and shift focus away from the resource sector, where it profited so substantially during the bull market of the 2000s.

Company chief executive John Wilson, who was brought on in 2012 to help lead the shift, says more than 80 per cent of the company’s actively managed business is not related to resources at all today, compared with only about a quarter in 2012.

In an interview, Mr. Wilson said that Sprott actually started as a small cap investment firm and saw big gains on non-resource plays such as Taser International Inc., but the commodity bull market pushed the firm more into resources.

“The firm grew incredibly quickly through there and grew this reputation as a resource manager, but at its core that’s not necessarily what it was about. It’s just that’s what worked, and that’s what people wanted to put money in.”

But the resource reputation has stuck, helped in part by founder Eric Sprott’s affinity for gold, and Mr. Wilson said that the company determined from a recent survey that 70 per cent of Canadian fund managers still think of Sprott as only focused on gold and resources.

And so Sprott Asset Management, the biggest component of the Sprott Inc. public company, is now in the middle of a cross-Canada tour and advertising campaign to change the perception that it’s only about resources as the bear market for commodities continues for a fourth year.

Mr. Wilson said precious metals, mining, and energy have “all been hit incredibly hard,” and he doesn’t see a turnaround soon as the fast growth in emerging markets that drove the commodity boom shows a lot of stress.


“Those growth rates are clearly decelerating pretty rapidly, and so over the near term, it doesn’t look particularly compelling, and the price action is telling that,” he said.

As the commodity cycle wound down, Sprott Asset Management started shifting into new areas of investment and is now more involved in fixed income, blue-chip equity investments, and real asset investing outside of resources.

But despite the diversification, Sprott is still a big name in precious metals, in part as a major player in physical gold investments.

And Sprott Asset Management is currently pursuing a hostile takeover of Central GoldTrust and Silver Bullion Trust to increase its stake in the physical gold business.

If the company is successful in its all-share US$898 million offer, the firm plans to merge the two businesses with its own precious metals holding companies, the Sprott Physical Gold and Silver Trusts.

Wilson said he thinks Sprott can do a better job of managing Central GoldTrust and Silver Bullion Trust.

“Sometimes when you’re the biggest in an asset class, and in precious metals we are, it is incumbent on you to clean up the space,” said Wilson.

The deal is anything but certain, with Sprott already extending the deadline for its offer twice, the latest of which ends on Friday.

- Source, Globe and Mail

Tuesday, November 10, 2015

Why Resource Stocks Will Fall Further From Here

"We still haven’t seen capitulation yet," Rick Rule told me.

Two weeks ago, I met up with my good friend Rick at Sprott’s headquarters in Toronto. Sprott is one of the largest resource companies in the world. They have over $8 billion in assets under management.

I also spent the day with Sprott founder Eric Sprott and chief portfolio strategist John Embry. These men are considered the Warren Buffett, George Soros and Carl Icahn of the resource industry. They have over 140 years of combined experience in the resource sector.

I was excited to catch up with Rick. After all, resource stocks have been in one of the biggest bear markets in decades. And I was sure Rick was about to tell me why investors should be aggressively buying stocks in this sector right now.

But his advice caught me by surprise.

Rick told me, "It’s still an incredibly risky market that could see more pain ahead over the next few months." And he explained why investors should be "extremely careful" when buying gold and silver stocks right now.

If you are not familiar with the resource industry, most stocks have lost more than 80% of their value over the past four years. Some experts (including John Embry) say it’s the worst bear market in resources in more than 30 years.


These types of extreme conditions in the resource sector often lead to incredible opportunities for investors.

For example, most resource stocks fell sharply during the late 1990s. By 2002, the sector finally bottomed. Over the next few years, resource stocks enjoyed an incredible run — with many individual names surging more than 10 times in value.

Resource stocks also fell sharply during the 2008-’09 credit crisis. Once again, this cyclical market reversed and sent stocks sharply higher. Smaller names like ATAC Resources, Kaminak Goldand Africa Oil surged more than 500% in just a few years’ time.

I’m sure huge opportunities will open up for investors once the current bear market reverses. However, Rick cautions that investors should be patient as resource stocks could fall further from here.

He highlights how most companies in the resource sector are "delusional." They have less than nine months of cash left on their balance sheets. Yet, these companies refuse to raise money "hoping" that the sector will finally bottom.

Rick also says that larger companies are not restructuring fast enough. They still have huge amounts of debt on their books. This will force industry leaders like Barrick Gold to sell assets well below net asset value (to raise cash).

Sprott is in a great position to weather a further downturn.

Rick says the company is only invested in a few dozen names today. That leaves more time for its portfolio managers and geologists to see more projects and spend time with their largest clients.

Plus, Sprott is sitting on over $330 million in cash. I’m sure this money will be used to fund some of the well-run resource companies who have fallen victim to the bear market. Based on Rick’s history of being an exceptional dealmaker, I’m also sure the terms of these deals will be extremely favorable for Sprott.

I suggest paying close attention to Rick’s advice. Many resource names are still sitting on piles of debt and need to restructure. Most junior mining stocks (which do not generate revenue) are also running low on cash. In fact, Rick says 90% of these small speculative names are worthless.

However, if you do venture into this volatile sector, be sure to buy stocks that are flush with cash. Also be sure they have experienced management teams and high insider ownership.

Most resource companies that are currently in Sprott’s portfolio fit this profile.

Good investing,

Frank Curzio

Thursday, November 5, 2015

Western central banks are depleting their gold resources

Well, in a gold market that has 4,000 tons of supply, I see 6,000 tons of buyers. You know that the 2,000 tons has to come from somewhere. It has got to come from Western central banks and I think these Western central banks are depleting their gold resources. Someday they’re not going to be able to make the payment when somebody demands the gold.

Of course the guy demanding the gold would be either Indian or Chinese or the US retail coin buyer -- people like that. And all of a sudden people will realize that the demand was always way above supply. And the same thing for silver. I mean look at what India has done in the last two years. They’re buying 30% of the silver market up from 10%. How is that possible?

You could buy an extra 20% of the market and have the price go down. It’s mathematically challenging to come up with that conclusion unless somebody in the paper market just wants to make the price whatever he wants to make it. Somebody who has got deep pockets can make the price do anything he would want as long as nobody asks for the silver. So I’m pretty convinced that the physical argument is a very powerful one.



Friday, October 30, 2015

There Will Be A Reset


Legendary investor and Sprott Asset Management Chairman Eric Sprott explains why he expects a junior resource "renaissance" and how he became successful by "stealing value." He also describes why gold price suppression is doomed to fail, how India could shock the silver market, and mentions three gold juniors in which he's "putting his money where his mouth is."


Tuesday, October 20, 2015

Shortages in Gold and Silver Very Quickly

Well, of course you won’t get a rebirth in the stocks unless you get a rebirth in gold and silver. I find it interesting that as we sit here today, though we don’t have the final numbers for the month of July, US mint sales I believe will be up at least 400% year over year.

Gold is dead. But we have a 400% increase in demand.

In the month of July, the US mint stopped silver sales. And ultimately silver sales for July, even though they missed about two or three weeks, I’m going to guess that we’re up at least 100%with two weeks of non-selling.

So you can see that there’s a move afoot here. It’s not just in the US mints or the Canadian mint in Canada, the Perth mint. Even at a company called Sprott Money where we sell coins on the internet, our business was very substantive in July.

So people are coming in to buy. I suspect that as we move into the second half of ’15, the physical demand out of Asia, and particularly India, really gets going. So there are lots of signs that there’s true interest in gold and if the interest in gold comes back, of course the leverage in the stocks is mind-boggling. I mean when the HUI index was last at around 110, the price of gold was probably $400. Today it’s at $1,100.

So you tend to think that there’s a lot of torque here. People actually started to believe that gold was going up. Most people, probably in the market, think gold is going down. So they’re probably pricing maybe $800 in the gold stocks today.

Well, if it ever reversed here, there would be a lot of catching up to do. So that could be very exciting if it were to manifest itself.

I believe that the physical buyers are there. The Russians are buying, the Chinese are buying, and the Indians are buying. People are buying. You would imagine everybody in Europe would be thinking, “OK, we got Greece going on. Is there going to be another one? Where is that other one?” There have been good sales in Europe recently of gold coins and silver coins. So you get enough of a groundswell that we could find out that we have shortages very, very quickly.


Thursday, October 15, 2015

What Are the Banks Assets Worth?

We’re going through the exact same thing in Greece. There has been no bail-in announced yet but if there’s a bail-in announced in a country that’s a little more developed than Cyprus, then in the countries around them who might be in similar situations, maybe then people will start reacting sooner.

I can think of Italy or Portugal or Spain or maybe some of the Eastern European countries. It could catch fire very quickly. I’m not suggesting it will. But when you have people starting to take money out of the banking system -- in terms of deposits --, that’s when we all find out what the assets [of the banks] are worth if they have to sell them.

When you have to sell an asset, it’s nowhere near the worth of some quote in the newspaper or some housing index that somebody says is up five percent this year.

You’re not going to get that market price. Now you have to sell it. The market will adjust to that.


Saturday, October 3, 2015

Wednesday, September 30, 2015

Eric Sprott Discusses BitGold vs. Bitcoin


Eric Sprott spoke at the Sprott-Stansberry Natural Resource Symposium on July 31st, 2015 in Vancouver. He took the opportunity to discuss his thoughts on BitGold, its relation to bitcoin and the role BitGold will play in the development of gold.


Saturday, September 26, 2015

I just know that the economy is not functioning smoothly

I’ve actually been very surprised that there hasn’t been more disruption at the university level for example. I mean here we have all these people taking on all these loans with the promise of some job that they don’t get.

They can’t possibly pay off the loans, and yet nobody seems concerned about them. How about if you’re at university today and you know darn well that when your time comes to get the social security, there’s not going to be any social security? Literally, people of my era are benefiting at the expense of people that are going to be in your era because all these programs that we have, we can’t afford. But nobody wants to cut them down to size -- not on their watch, not while they’re running the government, even though it’s so obvious that there’s no way that when you retire the social security benefits that you’ve been promised can be paid.

For example, they just announced that the disability fund is going to be out of money next year and then the retirement fund will be out of money in 2034. Well, that’s maybe getting to when you might retire.

But there won’t be any money there. So it’s a very difficult situation and I’m surprised that there haven’t been more people complaining. Maybe someday if food prices go up shockingly high -- perhaps because of the drought in California or other things -- when you start affecting food and its availability, then people will be more disruptive.

I don’t like to even contemplate those things. I would much rather just look at the economy. Let’s not get into how people are going to react, although it could be very negative to markets.

I just know that the economy is not functioning smoothly. Sooner or later-- because I have to care about these things -- stocks won’t sustain the highs that they’re at and the banking system won’t be able to pretend that it’s solvent.

And of course it’s the banking system not being solvent that always takes me to precious metals.

I think of the people in Greece, who could only get – what was it? -- sixty euros a day? Well, if they’d had their gold somewhere, they could cash something in. But they go to the bank and they got to get in the line-up and they get 60 euros in a day. I mean that doesn’t carry you too far. So I still believe that’s the ultimate manifestation that there’s no economic recovery. The banks will suffer. People will figure out that banks are risky and the money will go to where it should go -- precious metals.


Wednesday, September 23, 2015

Double Digit Inflation With No Growth

They pretend that inflation is low but I don’t think inflation is low. As you would have seen in my presentation, there’s an index called the Chapwood Index that measures 500 different items in 20 different cities in the US. The index, every year from ‘11 to today, has been in the double-digits.

So imagine double-digit inflation with 2% GDP growth. You would be really shrinking at 8%. Today we saw that wage gains in the second quarter were 0.2%. Well, 0.2% in the quarter is like 0.8% for a year. I can assure you that everyone’s increases in healthcare costs this year will suck up more than that wage gain. Somehow these costs don’t go into the CPI thing. I don’t know how they don’t, but they’re just not going to tell us what inflation really is. It’s much higher than is being reported, I think.

It tends to distort all the numbers. It makes GDP way higher than it would otherwise be and tries to keep a certain calmness in a very, very difficult economic environment.

- Source, Eric Sprott via Proactive Investors

Sunday, September 20, 2015

Inflation is Way Beyond What is Reported

We have this constant interference by the powers-that-be to not let the markets function properly. In the bond market, it’s through low interest rates. I personally suspect that governments are in the stock market. We know the Japanese buy stocks. We know that the Swiss national bank buys stocks. We don’t know for a fact that the US government buys stocks but there might be methods by which they can convince people to “keep it together.” Every time we get a little correction, it bounces right back up again.

So that’s just the environment we’re in. We’ve spent all this money. We’ve taken rates as low as we can get them and we’re just hanging in there. Even recently we had the GDP for 2011 to 2014 revised down so that it turned out to be 2% a year. Of course the 2% is a function of the inflation rate. Say, if inflation was reported as 1% but is really 3%, then you had no growth because GDP is just a dollar number.

My own feeling is that inflation is way beyond what’s reported. If inflation really was 5%, and you said GDP growth was 2%, then the real growth is -3%.

So I’m not a believer that there is any economic recovery that’s sustainable. I always say we’re trying to get liftoff. But we don’t get liftoff because we haven’t finished the cleansing process yet.

- Eric Sprott via Proactive Investors

Tuesday, September 15, 2015

The Financial Crisis Nearly Took the Whole System Down

I’ve never been a believer in the economic recovery that we’re supposedly in. I think that the powers-that-be are pulling out all the stops to try to hold it together. I go back to the NASDAQ break which I think should have caused a huge cascade of stock values to stay low for quite a while. And then of course the powers-that-be used whatever methods were available to them to try to stimulate things. Back in those days, it was “cash-for-clunkers,” the new homebuyer tax credits and of course the whole zero-interest-rate thing. Then we had TARP and TALF in ’07 and ‘08.

We had conservatorships of Fannie and Freddie, and AIG, which I’m sure nobody really understands. It’s all “try to keep it together.” I think we learned in ’07 and ’08, when Lehman went down, that the powers-that-be can’t allow a liquidation where a financial organization has to sell something, which unfortunately is what happened to Lehman and nearly took the whole system down.

So subsequent to that, we’ve never had a liquidation. Even, for example, in the Cypriot bank crisis, the Cypriot banks never had to sell anything because they just took from the depositors. It looks like the Greek situation that we have today; the Greek banks don’t have to sell anything because the ECB just comes in and supplies the Emergency Lending Authority. I think if you allowed the market to function as it should function, where values are determined by the market, we would see this sort of domino effect where the Greek banks would have to sell their loans off and then the Greek stock market would collapse, the bond market would collapse and then people [in countries] around them would start thinking, “Well, that could happen to me.”

- Source, Eric Sprott via

Thursday, September 10, 2015

The Powers That Be Don't Want To Admit There's A Problem


The market is out of step with reality, Eric Sprott tells Tekoa Da Silva in his recent interview.

“We had no growth in the economy to speak of. Yet these stocks were trading at record-high prices,” he says of the overall market.

He also believes the banking system is over-exposed to assets which stand to depreciate in value.

The strength of bonds and stocks so far has masked these weaknesses in banks’ balance sheets, says Eric, but that could change if markets came under more strain. “When you have people starting to take money out of the banking system,” he warns, “that’s when we all find out what the assets (of the banks) are worth.”

Especially worrying for investors in stocks should be the massive build-up in debt and un-funded obligations in developed countries, says Eric. This is leading towards a big breakdown in world bond and stock markets, he believes.

Eric also discusses his “principles” for success and how anticipating a crash in tech stocks during the late 1990’s led him to first become interested in gold and silver.



Sprott Provides Update on Central GoldTrust and Silver Bullion Trust Exchange Offers

Please Join Sprott for a webcast hosted by John Wilson, CEO of Sprott Asset Management and Eric Sprott, Founder of Sprott Asset Management and Chairman of Sprott Inc.

John and Eric will provide an update on Sprott’s Exchange Offers for Central GoldTrust and Silver Bullion Trust and will answer questions from participants.


Thursday, September 10, 2015, 10:00 am EDT


Sunday, August 30, 2015

Eric Sprott Was Right, Inflation is Rising

Eric Sprott believes that we’re still living in the times of inflation.



Source: ChapwoodIndex.com

Eric showed the above table in his presentation. It shows that the true level of inflation, a persistent increase in prices, has been sitting around 10% since 2011. Indeed, a far worse picture than what the US Federal Reserve paints. The Fed argues that prices have been rising below 2% for the past four years. That said, the Fed doesn’t include food, petrol and taxes in its inflation index. This is similar to the Reserve Bank of Australia’s inflation calculation.

But then who needs petrol and food, right?

So it’s not surprising that Jim Rickard’s, over at Strategic Intelligence, argues that there’s no worse forecaster in the world than the US Fed.

You may have noticed each year that Australian healthcare companies raise their premiums by roughly 6%. Well, costs are also rising over in the US.

I’ve been speaking to many US citizens up here at the conference. The word on the street is that Obamacare is one of the worst policies of all time. It’s legally forced those who can’t afford health care to buy; at the same time, hiking insurance premiums for those who require modest healthcare.

And it’s only going to get worse…

Now, after two years of being relatively stable, premiums are going to skyrocket. New Mexico, for example, is about to see a 51.6% jump in costs next year. No doubt this will squeeze the US economy even more.

So Eric Sprott is correct…yet again. The general level of prices across the economy has been increasing. You’ve probably noticed the same thing here in Australia — food, healthcare, education, etc. — It’s all going up!



Tuesday, August 25, 2015

I’ve always believed you should own gold

I’ve always believed you should own gold and it has played out very well since I got involved back in 2000. It has been spectacular, quite frankly.

Of course it has been a very, very tough game for the last four years here. In my own account, I continue to invest in gold and silver companies. I recently bought a mine in the United States personally. I just took on 40% of another mine here in Canada.

So I’m a believer. I look at the physical supply and demand of gold -- and silver for that matter, where we are experiencing some shortages here.

The demand numbers I’ve seen are way beyond the supply. I think that Western central banks surreptitiously make up the missing supply and that someday they’re going to look in the cupboard and realize that it’s bare.

So far, everyone in the press is downplaying gold but I haven’t lost any conviction whatsoever.

To your bigger question, how do you survive in a recession or a depression?

You have got to take matters into your own hands. Make sure you have essentials and the things you need to get you through. It could fall apart pretty seriously all of a sudden – just like we experienced in ‘08 where there was almost a zero credit available at one time.

That is just as likely to happen this time and it’s hard to transact in an environment like that. So you had better be prepared. Have some ‘good’ currency -- gold and silver.


- Source

Thursday, August 20, 2015

Fiat Money and Central Planners Will Fail

That is totally the case.

It’s similar to what we’ve seen in Japan, where there really is no recovery. We see it happening in the States where there’s no recovery. The only hint of a recovery is coming from the fact that you took rates to zero. You let the marginal buyer buy a home. You let the marginal buyer buy a car. Those slight gains, which are often at very low levels, have kept the economy bumbling along here.

But as you know, there are lots of signs that the economy is not strong. Retail sales were down 0.3 percent for the month of June.1

The middle class is getting pillaged because inflation is way higher than the wage gains they have seen. Therefore, there’s no extra money for discretionary spending, even in the US.

Europe looks like it has failed the Greek situation here.

And we even have a situation in China now where the monetary authorities were perhaps too lax and now they are paying the price.

The population bought into the stock mania and now they are getting their hats handed to them too.

The theory that central planners can alter events on a sustained basis is fundamentally wrong. We saw the central planners fail in the USSR. We see them failing in Japan. We see them failing in the ECB. We see them failing in the US.

I think it all shows that fiat currency -- and more importantly debt creation -- can sustain an economy for a while. But once you have to start paying back the debt and you can’t take on increasing amounts of credit, then your GDP goes down because people don’t have the spending power.

That’s essentially where we are now. Countries, central banks, and people really can’t take on more debts. Therefore, you’re likely to see a contraction in economies as that extra spending from debt vanishes from the scene.


Saturday, August 15, 2015

The Greek Crisis Will Continue

Well, of course the fundamental problem, which was very much expressed by Mr. Varoufakis, is that Greece is broke.

He said it probably three months ago now. The fact is that they are broke and have around 25 percent unemployment.

They’ve been undergoing a recession for five years. So how do you expect somebody who’s broke to pay up? Normally, when someone is broke, they go through a chapter 11 bankruptcy or something in order to get out from under debt.

So I think it’s going to be an ongoing crisis. It will be interesting to see how it plays out in the banking system. But of course it’s the banking system that the powers-that-be want to preserve. That’s because the banking system can create a domino effect where all of a sudden everyone is questioning everyone else’s credit. Also, writing down a debt would be bad because that debt is on people’s balance sheets, particularly the ECB’s.

They can pretend that there are no write-offs or put it up in some organizations where you never see the losses. But we all know that if Greece repudiates its debts, there are going to be lots of losses on those bonds. We will see how it plays out.

- Source, Eric Sprott via Proactive Investor

Wednesday, August 12, 2015

"I Haven't Lost any Conviction" on Gold and Silver

I have always thought that the ECB (European Central Bank) would persist in coming up with some kind of solution, because they had just under $89 billion euros in the Greek banking system and we were theoretically only talking about lending another $7.2 billion to Greece to solve the problem.

But that has gone way up in the meantime, like most estimates that countries make on the size of their difficulties.

When I look at the proposals, it just is a total wipeout for Greece. For the love of me, I can’t understand why their parliament would pass that.

I mean, the ECB is seizing $50 billion in assets. It almost looks like they want to run the banking system in the country, if not effectively run the country itself! All the reporting mechanisms go to the ECB.

I can’t believe that Tsipras would have won the “no” vote (against the bailout) and then had that happen to him.

I have always believed that Greece would have been better off just reneging on the debt because there’s no way in the world that the ECB can honestly expect to be paid back.

So we will see what happens in the Greek parliament. But I think Greece would be better with an exit and debt repudiation. With what they theoretically agreed to, it is going to be very, very difficult for the Greeks and the country to survive in that environment.

So we will see how that plays out as events unfold. Even other governments within the ECB might reject it. So there are still a lot of acts to be played.


Thursday, June 25, 2015

Sprott Carries No Debt

“We want to double our business in the next three years, and we can do that by offering different kinds of products,” Wilson said.

Sprott Asset Management, the unit run by Wilson, has made an offer to buy Central GoldTrust and Silver Bullion Trust via a share swap valued at about $898 million. The offer for the Canadian trusts, which buy and hold gold and silver, expires in July.

Sprott would consider opportunities similar to its proposal for the two trusts should they come up, Wilson said.

“I expect acquisitions, tuck-ins or larger,” Scott Chan, an analyst at Canaccord Genuity Corp. in Toronto, said by phone. “Sprott’s been looking at acquisitions, they have a strong balance sheet. They have the people to manage C$15 billion, they’re just half-way there.”

Sprott carries no debt and had C$119.6 million in cash and near-cash items on its balance sheet, according to the company’s first-quarter filings.


- Source, Bloomberg

Saturday, June 20, 2015

Sprott Sees Assets Doubling as Braces for Bull Market End

Sprott Inc. aims to double its assets to about C$16 billion ($13 billion) in the next three years by adding consumer and technology stocks to legacy gold holdings as the equity bull market nears an end.

While the Canadian money manager is positive on U.S. and European growth, it’s also bracing for volatility as central banks raise interest rates, said John Wilson, chief executive officer of the firm’s asset management unit. He’s invested in more defensive stocks such as Alimentation Couche-Tard Inc. and CGI Group Inc. that are geared towards international growth.

Canadian software provider Shopify Inc.’s 51 percent surge on its New York trading debut in May underscores the bull market’s advancing age, Wilson said.

“That’s not the start of a bull market cycle,” Wilson said in an interview in Bloomberg’s Toronto office. “That tells you where we are in the equity cycle. My best guess is we have a year or two left.”

Sprott, founded by gold investor Eric Sprott in 1981, hired Wilson in 2012 to help diversify the firm as the precious metal tumbled. Assets edged up to C$7.8 billion in the first quarter after sliding to C$6.97 billion at the end of 2013 from a peak of C$9.93 billion in 2012.

Non-resource assets now make up about 75 percent of Sprott’s actively managed funds, compared with 27 percent in 2012, the company said.

Sprott has risen 4.5 percent to C$2.55 this year, compared with a 3.1 percent gain in the Standard & Poor’s/TSX Composite Index. It’s down almost 75 percent from a 2011 peak of C$9.60.

- Source, Bloomberg


Friday, June 12, 2015

I Remember My First Period of Catastrophic Losses


Rick Rule of Sprott Global talks about some of his experiences in the investing world. Even the greats make mistakes from time to time.

Monday, May 25, 2015

Billionaire Eric Sprott Says Stock Market Will Crash, Not Gold

“Well, God knows when the dust settles, but what I’ve expected for a long time now is that the basic fundamentals for gold and silver will win the day. That hasn’t happened yet. It hasn’t happened because entities have financial weapons that they can use on these commodity exchanges and the physical buying hasn’t gotten to a point where we have the failure (of an exchange to deliver)….

But I think it’s reasonably predictable that we are going to have a failure. All of the demand data and the reasons for owning gold have improved. We all know that zero interest rates and printing money has not provided the answer and won’t provide the answer.

The only thing it does is it allows people to speculate on buying securities, but it’s not helping the economies. In fact, there are elements of the economy that are doing worse. The savers are way worse off today than they were before. They are forced to speculate in order to get returns. By speculating they are taking on greater risk.

But there is no recovery. You just have to take the comments of the various people at companies and they keep saying, ‘The consumer is tapped out here and it’s not likely that we are going to experience much growth.’ So how can you have stocks keep going up when there is no commensurate economic recovery?

But the framework for gold and silver and other precious metals to do well is more incredible today than it’s ever been. And you can have (crazy) readings in these (stock) markets — I’ve experienced it. Going into 1999 – 2000, everyone was buying Nasdaq stocks like crazy. Ultimately the day came when the whole index crashed by 75 percent, and that’s what I think is going to happen here. The stock market is going to crack.

- Source, Eric Sprott via King World News

Wednesday, May 20, 2015

Silver Is One Of The Greatest Opportunities In World History

“Normally when there is a price decline like we have recently seen on the Comex, the longs are flushed out and the shorts reap their profits. But despite continued pressure on the price of silver, the longs are not capitulating. If anything they are digging in and the open interest is growing, which is unheard of.

The open interest in the December trading contract, which matures in 17 trading days, dwarfs the available inventory on the exchange. So it will be very interesting to see how this situation unfolds. When you put that into the context of the fact that silver is now trading dramatically below what it takes to extract an ounce from the ground for a pure silver producer, it really demonstrates the absurdity of the situation.

With a price that has been under so much pressure, this would normally suggest that silver demand has been weak and the market is being overwhelmed by supply, but that’s not the case. The demand for silver coins from the U.S. Mint has risen dramatically and there has been continued demand from the industrial side, which takes up the lion’s share of supply.

People have to remember that in the aftermath of World War II there were massive inventories of silver in the world. And following the Hunt Brothers attempt to corner the market in the 1970s, above ground inventories remained huge. But all of these above ground inventories have been absorbed as physical demand has outstripped mine supply for many, many years.

Also, the majority of silver mine supply comes as a result of base metals mining. With the world now moving inexorably toward a recession/depression, and with excess supply everywhere, the demand for base metals is going to decline sharply. This will curtail production and mean there will be less silver byproduct.

So I see an extremely positive supply/demand situation building here at a price that is remarkably discounted for silver. What doesn’t get discussed is the fact that not too long ago roughly 1/3 of the industrial demand for silver was related to photography. But all of that demand from photography has disappeared and been replaced by solar demand, medicinal demand, etc.. And these new sources of demand continue to grow well beyond what we used to see from photography.

But because the paper manipulation is beyond remarkable, silver remains as undervalued an asset as I have ever seen. As an example, in the last 135 trading days the silver price has declined in the thinly traded access market 130 times at the open. So to be clear, in the early hours of the east coast of the United States silver has declined at the opening of trading 130 out of the last 135 trading days. That is preposterous. And some of these declines have been precipitous.

This is purely manipulation by high-frequency and algorithm programs and it sets the tone for each trading day and permits the powers that be to keep the pressure on the price. This is all part of how they attempt to keep the public away from gold and silver. But gold and silver are the only real money and it remains the arch enemy of the failing fiat currency system. So the central bankers are in overdrive here trying to discredit gold and silver.

Sadly the Western governments and central banks have failed their citizens and are now trying one last time to keep things afloat. Unfortunately they are going to fail, and all investors can do as that day of failure rapidly approaches is to own physical gold and silver in order to protect themselves. This is the most dangerous time in world history, both economically and financially — strictly on the leverage in the financial system — and the sad truth is that I don’t even think we are going to recognize the world when this is over.”

- Source, John Embry of Sprott Global via King World News

Friday, May 15, 2015

Coming Mania In Gold And Silver Will Be Epic

"You will also remember that anybody who got shaken out in the period from 2000 – 2002, missed the market between 2002 – 2006, and that was an epic move by any imagination. And my suspicion is that when this up-market gets going in earnest in the gold and silver sector, it too will be epic by anybody’s imagination.

The bull market in gold will be global this time around. Meaning China, India and other big gold-buying countries will be involved in the mania. Also, the Western countries are in substantially worse shape today in terms of dealing with the problems that we find ourselves in. So you have two strong reasons why this market could eclipse the mania that we saw in the gold and silver markets from 1976 – 1980."

- Source, Rick Rule of Sprott Global, via a recent King World News interview

Tuesday, May 12, 2015

Fortunes Will Be Made

The truth is that in all the prior cycles the money that I had invested in the market went up 10-fold in the rebound. The difference today is that I have much more money to work with and a much stronger team at Sprott. And I would suggest to you, Eric, that the KWN readers who maintain the cash and the courage to be involved through this down-cycle and into the up-cycle will be similarly rewarded.

What I don’t know is exactly when this up-cycle will begin in earnest. Make no mistake about it, I think we are already in the early stages of the up-cycle, but you will remember, Eric, that the last up-cycle, beginning in July of 2000, didn’t feel apparent to most of the market in 2002.

- Rick Rule of Sprott Global, via a recent King World News interview

Monday, May 4, 2015

Fortune Favors the Bold


It's no coincidence that at this exact moment, billionaire Eric Sprott, legendary investor Rick Rule, and Keith Neumeyer are coming together to start First Mining Finance.

They are calling it a mineral bank, with the objective to acquire high-quality assets that they are already aware of that are currently owned by distressed companies. Over 60 projects have already been identified by management.


Wednesday, April 22, 2015

The Entire Global Financial System Could Collapse

“So who’s going to buy it? Who in their right mind would be buying bonds with a negative yield? It’s just so preposterous. And all of the sudden if the bond buyer is not there — we used to think it was so great that China would buy our bonds. They don’t buy our bonds (anymore). Russia used to buy our bonds — they (now) sell our bonds.

The only entities buying the bonds are the central banks. Well, you take the central bank out of it and there’s no bid. That’s why I use the phrase, ‘I hope we are not right one day,’ that all of the sudden it (the entire global financial system) just collapses."


- Source, Eric Sprott via King World News

Friday, April 17, 2015

Billionaire Eric Sprott Just Made The Most Terrifying Prediction Of 2015

Today billionaire Eric Sprott warned King World News that the entire global financial system is now facing the greatest danger in history. He then issued the most dire prediction of 2015.

Eric King: “We had (the stock market collapse) of 2001 – 2003. Then we had (the more intense collapse of) 2007, 2008, 2009. The next one (collapse) is going to be worse because that’s just how these cycles progress. As you know, they (seizures in the global financial system) get more violent and the collapses become more and more intense. People couldn’t imagine it would get worse than 2001 – 2003, and yet we had 2007 – 2009. This one that’s in front of us, I’m assuming it's going to be the mother of all collapses.”

- Eric Sprott via King World News, read more here.


Thursday, March 5, 2015

Expect Physical Gold Backing Of Currencies Within Next Decade


Tekoa Da Silva sits down with Eric Sprott to discuss the current state of the Gold & Silver Market & where its heading.

Friday, February 20, 2015

The Fed Has Lost Control of the Bond Market!


In his most explosive. - The CEO of Sprott Asset Management, Eric Sprott, says, We're buying more bonds on a daily basis.

Tuesday, February 17, 2015

Expect Physical Gold Backing of Currencies Within Next Decade


During a time of currency volatility and returning strength in precious metals, Eric Sprott, Chairman of Sprott Inc. was kind enough to share a few comments.

Regarding currencies, Eric noted that “I’m kind of shocked that the most volatile sector of the financial market right now is the currencies… it really should be bonds or stocks, but it now seems to be currencies.”

Higher risks within global currency markets buttress, “An awesome outlook for gold,”Eric added. “Last year, 84% of the world’s population would have made money owning gold because of various currency moves—even though gold in US dollars was down approximately 1%.”

Commenting on the root cause of growing currency gyrations, Eric noted that, “The whole precept that printing money is goodthat somehow zero interest rates and negative interest rates are good, is totally fallaciousIt’s so unimaginable and yet somehow the investment public has bought into itThings are unstable hereSo I imagine probably in less than 10 years we will see physical assets backing currency. Of course, the most likely physical asset is gold.”

- Source, Sprott Global



Monday, February 2, 2015

Post-Referendum Gold Jitters, Black Friday Blues & the Smash in Gold


Listen to Eric Sprott share his views on the effects of the Swiss gold referendum on gold prices earlier in the week, the decrease in sales for this year's Black Friday sales, U.S. job numbers not reflecting the current economic status of the average individual, and the smash in gold prices today.

- Source, Sprott Money News

Friday, January 30, 2015

Indian Gold, Stock Market Woes, Oil Prices, and Golden Optimism



Listen to Eric Sprott share his views on gold imports in India, the growing volatility of the stock market, the effects of declining oil prices on the global economy, and his short-term outlook for gold.

- Source, Sprott Money

Saturday, January 24, 2015

Forget The Propaganda, Things Will Quickly Unravel As We Enter 2015

The U.S. is by far the world’s largest debtor, and the fact that it still retains its world reserve currency status is the primary reason that its paper retains any value whatsoever at this point.

So what we’re faced with right now is this recurring propaganda that is being reported in the United States that the U.S. economy is growing strongly and that job creation is robust. What utter rubbish. Everything is being falsified to keep this myth alive and keep the U.S. dollar and the bond market afloat.

So for somebody to say that this is the only game in town really shows the depth of stupidity that’s on display today. Part of this plan is the relentless suppression of the gold and silver prices. I think it’s reaching new levels of absurdity as we speak. There is no justification for the price action that we are seeing, even today when prices fell sharply as soon as the London market closed.

The reason for the continued manipulation is because gold and silver represent the canaries in the coal mine. If they were really reflecting the truth this whole myth about low interest rates and everything being fine would be destroyed. I think there is infinitely more evidence coming out daily that the offtake in the East — India, China Russia, etc — is continuing to grow.

In the meantime, what remaining gold is left in Western vaults continues to be depleted. So I believe this suppression is very much in the final stages. If that is the case, I think the subsequent price explosion will be something to behold.


- John Embry of Sprott Assets, via King World News

Wednesday, January 21, 2015

Billionaire Sprott’s Business Partner Reveals His Thoughts For 2015

"My suspicion is that 2015 will give us more of the same. Meaning the global economy is flat on its back and it will stay there for quite some time. 2015 will bring small pockets of prosperity, but the prevailing trend towards increased government and increased government debt will continue to strangle the overall economy.

One would hope, you’ll note that I used the word ‘hope’ again, that the big thinkers of the world are right and that I’m wrong. I understand the hope people have that Western central planners can print trillions of dollars of counterfeit currency units and that liquidity will overwhelm concerns of solvency. It certainly has worked for the last 2 or 3 years.

It would be wonderful to have a set of circumstances where contrived liquidity was the antidote for the sins of the past decade. I just have a very difficult time seeing that come true.”


- Source, Rick Rule via a recent King World News interview

Thursday, January 15, 2015

The Fed Has Lost Control of the Bond Market!


 
The CEO of Sprott Asset Management, Eric Sprott, says, We're buying more bonds on a daily.

Monday, January 12, 2015

Bankrupt governments will break their promises




Eric Sprott, Chairman of Sprott Asset Management, and James Turk, Director of the GoldMoney Foundation, talk about Eric's book and how his analysis shows that the US government, with a GDP of 15 trillion, has liabilities of almost 80 trillion and that these promises will be broken just as the Greek government is breaking its commitments.