- Read the full article here:
Thursday, December 22, 2011
Sprott's Call for Silver Producers to Hold Back Metal Strikes Chord
Sprott says he has had some positive responses to his letter from major producers. "I know it's under consideration by a lot of people," he said.
"I think the price should already be substantially higher," Sprott said. "The trade should be 16:1 gold:silver ratio. That implies that at $1,600/oz gold, silver should be $100/oz. At $3,200/oz gold, silver should be $200/oz. The outlook for gold is phenomenal and silver is going to go up even faster. That is why I think that this next decade will be the decade for silver," Sprott predicted.
Tuesday, December 13, 2011
Positioning To Profit From The Pan Asia Gold Exchange
Some other analysts such as Eric Sprott claim that if individuals took delivery of just 5% of the traded contracts it would be enough to deplete COMEX of its entire inventory.
- Read the full article here:
Sunday, December 11, 2011
Eric Sprott Fights PM Manipulation Fire With Fire: Calls Silver Producers To Retain Silver Produced As "Cash"
In what is likely the most logical follow up to our post of the day, namely the news of the lawsuit between HSBC and MF Global over double-counted gold, or physical - not paper - that was "commingled" via rehypothecating or otherwise, we present readers with the monthly note by Eric Sprott titled "Silver Producers: A Call to Action" in which the Canadian commodities asset manager has had enough of what he perceives as subtle and/or not so subtle manipulation of the precious metal market, and in not so many words calls the silver miners of the world "to spring to action" and effectively establish supply controls to silver extraction to counteract paper market manipulation in the paper realm by treating their product as a currency and retaining it as "cash". To wit: "instead of selling all their silver for cash and depositing that cash in a levered bank, silver miners should seriously consider storing a portion of their reserves in physical silver OUTSIDE OF THE BANKING SYSTEM. Why take on all the risks of the bank when you can hold hard cash through the very metal that you mine? Given the current environment, we see much greater risk holding cash in a bank than we do in holding precious metals. And it serves to remember that thanks to 0% interest rates, banks don’t pay their customers to take on those risks today." And the math: "If silver miners were therefore to reinvest 25% of their 2011 earnings back into physical silver, they could potentially account for 21% of the approximate 300 million ounces (~$9 billion) available for investment in 2011. If they were to reinvest all their earnings back into silver, it would shrink available 2011 investment supply by 82%. This is a purely hypothetical exercise of course, but can you imagine the impact this practice would have on silver prices?" And there you go: Sprott 'reputable' entity to propose to fight manipulation with what is effectively collusion, which in the grand scheme of things is perfectly normal - after all, all is fair in love and war over a dying monetary model. Who could have thought that the jump from "proletariats" to "silver miners" would be so short.
- Read the full story at ZeroHedge, here:
Friday, December 9, 2011
Canada's Gold Problem, It Has None
"Eric Sprott with Sprott Asset Management discusses how Canada sold all of its gold and how that decision will impact the country."
Wednesday, November 30, 2011
Eric Sprott - Silver Producers: A Call to Action
“If they were to reinvest all their earnings back into silver, it would shrink available 2011 investment supply by 82%... Silver miners need to acknowledge that investors buy their shares because they believe the price of silver is going higher. We certainly do, and we are extremely active in the silver equity space. We would never buy these stocks if we didn’t. Nothing would please us more than to see these companies begin to hold a portion of their cash reserves in the very metal they produce. Silver is just another form of currency today, after all, and a superior one at that.”
- Read the full article at King World News, here:
Saturday, November 26, 2011
Billionaire Eric Sprott Asking Silver Producers to Save in Silver
“All you know is that there’s only a couple of things that you have to have your money in to be safe. For example, I’m writing a letter basically suggesting to the silver producers, you know you guys have all of this money in banks, why do you have it in banks?
Put it into silver, it’s a way better asset than having a bank deposit that pays zero interest rate and you take all of the risk of the bank on. You know if enough people accept that thinking, I mean, at the margin, you bring all of those buyers in (to silver), who knows where the price is going to go? But it won’t bear any relationship to where it is today.”
Put it into silver, it’s a way better asset than having a bank deposit that pays zero interest rate and you take all of the risk of the bank on. You know if enough people accept that thinking, I mean, at the margin, you bring all of those buyers in (to silver), who knows where the price is going to go? But it won’t bear any relationship to where it is today.”
- Read the full interview at King World News, here:
Tuesday, November 22, 2011
Sprott to Buy $1.5B of Silver Bullion
As the silver and gold price predictably fade ahead of option expiration, JP Morgan’s bullion manipulation scheme could be headed for unprecedented problems, not from the record purchases of gold and silver from the Chinese, Indians or Russians, but from one Canadian billionaire.
Canadian-based Eric Sprott Management CEO Eric Sprott filed a follow up prospectus for the purchase of an additional $1.5 billion of silver bullion to cover expected demand for the company’s exchange traded fund, PSLV...
Canadian-based Eric Sprott Management CEO Eric Sprott filed a follow up prospectus for the purchase of an additional $1.5 billion of silver bullion to cover expected demand for the company’s exchange traded fund, PSLV...
- Read the full story here:
Saturday, November 19, 2011
This Will Be The Decade Of Silver - Interview With Eric Sprott
Well, I have to beg to differ with the word ‘intelligent plan’, because I don’t think there is an intelligent plan. In fact I think we all now know that most plans have not worked and created a very difficult situation for the average person in the world and has exacerbated the problem in the banking world. So, they’re going to come up with a plan, it won’t be an intelligent plan. I don’t think solving a debt problem is solved by more debt and leveraging, which is what’s being discussed in Europe today. But either way, as I said before, I don’t think the impetus will be for precious metal prices to rise, if I had to predict, I certainly would believe that silver would be above $50 next year and that gold certainly would be above $2000 and it could be substantially higher than that. It’s a question of how irresponsible governments are and maybe we will find out there is a Eurpoean plan, and then 3 or 4 months later, there is an American plan where we get QE3. It’s hard to know where it’s going to go because we don’t know how irresponsible the governments are going to be, but they are tending to be irresponsible, therefore you would think there would be lots of impetus for higher prices...
- Read the full interview here:
Thursday, November 10, 2011
Sprott Inc. likes gold stocks as they trail bullion
Money management firm Sprott Inc. sees the performance gap between gold stocks and bullion as an opportunity.
Sprott is "confident in its physical metals position and believe the current market environment presents unique opportunities to invest in precious metals-related equities, many of which are trading at historically wide spreads to bullion prices," Sprott chief executive officer Peter Grosskopf said as the firm released third-quarter results...
Sprott is "confident in its physical metals position and believe the current market environment presents unique opportunities to invest in precious metals-related equities, many of which are trading at historically wide spreads to bullion prices," Sprott chief executive officer Peter Grosskopf said as the firm released third-quarter results...
- Read the full story at the Globe and Mail, here:
Tuesday, November 8, 2011
Eric Sprott talks to James Turk in Munich
Eric Sprott, Chairman of Sprott Asset Management, and James Turk, Director of the GoldMoney Foundation, meet in Munich and talk about the Munich Precious metals conference (Edelmetallmesse). They comment on Eric Sprott's speech at the conference and how increasing interventions by central banks, from zero interest rates to money printing and bond buying have completely distorted the financial markets.
They speak about the very hard choices between austerity and increasing stimulus and how both will bring on a meltdown, whether bankruptcy or hyperinflation brought on by money printing. They talk about the huge leverage in the banking system and the risk inherent in the system. People are only now starting to understand counterparty risk. They explain that 20-to-1 and even higher leverage is common in the banking system.
They talk about the disparities between the physical market and the paper silver markets. Eric talks about supply and demand and how the upward pressures on silver price from demand growing much faster than supply are not being accurately reflected. A 900 million ounce silver supply simply cannot cope with a 380 million ounce increase in demand and maintain current prices. Eric also explains that investment sales of silver are 50 to 1 in volume compared to gold and that this means a decreasing gold/silver ratio.
They 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.
They talk about the short-term focus of political decisions and the bad omens for the dollar as a world reserve currency. Kicking the can down the road is increasingly not an option for bankrupt governments, as even the bond markets are increasingly uncooperative with new stimulus efforts. As an example the recent failed attempt by the EFSF to raise 3 billion. They talk about the IMF creating $280 Billion SDRs out of thin air and ask whether that will keep the party going a bit longer.
This interview was recorded on November 4th 2011 in Munich.
Thursday, November 3, 2011
EXCLUSIVE INTERVIEW WITH ERIC SPROTT CONCERNING SILVER PRICE OUTLOOK
Patrick MontesDeOca chats with Eric Sprott in this exclusive interview that took place at the Silver Summit in Spokane, Washington the week of October 17, 2011. Mr. Sprott speaks in riveting detail about the Silver Market and it's outlook through this year and next, in this not-to-be-missed interview.
Friday, October 21, 2011
Monday, October 17, 2011
Sprott Launches Corporate Class, New Fund
"Sprott Asset Management has launched Sprott Corporate Class Inc., a mutual fund corporation which will allow investors to switch between investment mandates without triggering a taxable disposition.
As part of the launch, the company is also offering a new mandate, the Sprott Resource Class, which will be managed by Eric Sprott, Rick Rule, Paul Wong, Charles Oliver, Jamie Horvat and Eric Nuttall. The fund will also serve as the rollover vehicle for Sprott’s Flow-Through limited partnerships."
As part of the launch, the company is also offering a new mandate, the Sprott Resource Class, which will be managed by Eric Sprott, Rick Rule, Paul Wong, Charles Oliver, Jamie Horvat and Eric Nuttall. The fund will also serve as the rollover vehicle for Sprott’s Flow-Through limited partnerships."
- Read the full article here:
Thursday, October 13, 2011
Why have the Gold Equities Lagged?
Why have the gold equities lagged? Eric Sprott provided a few reasons and what he is doing about it:
First and foremost: the sell-side’s abysmal gold price estimates. While the futures market is comfortably forecasting a continuation of today’s levels, the majority of sell-side analysts refuse to update their gold price estimates to reflect its recent strength. A rising gold price is normally a bad sign for the broader equity markets, and generally indicates a bearish trend. As bears ourselves, we’re completely fine with this, and invest accordingly. But the sell-side has difficulty pairing bearishness with new underwriting opportunities. It doesn’t mean you have to believe their price forecasts however.
The second reason is gold’s volatility. The amount of paper gold and silver contracts that trade on the futures and equities exchanges still dwarf the amount of actual physical trading that takes place. Paper markets continue to set price discovery – thereby allowing for dramatic volatility with little or no influence from actual physical fundamentals. In the LBMA market, for example, market participants traded an average 19.6 million ounces of gold PER DAY in July 2011.1,2 Keep in mind that the total gold mine production in 2010, globally, was approximately 86.5 million ounces. Global gold mine production is not expected to increase significantly year-over-year, so the LBMA is essentially trading a year’s worth of production in less than a week. And this is just ONE market. When you add the COMEX futures and gold ETFs, the paper trading volume becomes absurdly high. When price discovery is dictated by levered paper contracts with no physical backing, it’s extremely easy and relatively inexpensive to jostle the spot price around. The result for gold has been many days of extreme downside volatility, despite a strong and consistent overall upward trend. Investors don’t like volatility – and the constant whipsawing has probably kept many of them away from the gold equity sector as a result.
Thirdly – investors still remember how badly gold equities got crushed in 2008. There was a reason they sold off so aggressively however – they were the most profitable positions investors owned going into the ‘08 crisis. Gold equities had enjoyed a strong bull trend going back to 2001, with the HUI Index appreciating by 980% from its November 2000 low through to August 2008. Investor behaviour is fairly consistent – when panic hits, you sell your winning positions first.
In many of the funds we manage at Sprott, we’ve transitioned out of gold bullion and into gold equities to better participate in the continuation of the trend indicated above. As long-time investors in this space, we can assure you that the production growth rates will be significantly higher in the junior stocks. They continue to trade at discounted valuations, and we believe they offer the best opportunity to build exposure. Margin expansion is the key metric for this industry, and the market is now acknowledging the miners’ improvement in margin capture – which has occurred despite the increase in capital and operating costs. We meet with a large number of gold mining management teams on a weekly basis, and based on those meetings, it appears that the average cost of producing an ounce of gold today, all in, is now around $800. At $1,200 gold, these companies can capture roughly $400 in EBITDA. At $1800 gold, however, they’re now capturing $1,000 per ounce in EBITDA - representing an increase of 150% in profit margin. That is significantly far above what any other equity sector has been able to generate over the past year.
Amazingly – despite this new reality for gold producers, we are still finding opportunities in select gold and silver mining companies that can be purchased today at 2-3 times their 2-year-out forecasted cash flow. These multiples are based on the current gold and silver spot price, and if these companies hit their production targets, and gold and silver continue their appreciation – we may discover that these stocks were trading at less than 1 times 2-year-out cash flow today. Having been in the business for many years, we can tell you that investing in a stock at 1 times 2-year-out cash flow tends to be a winning proposition – let alone in an industry that literally mines the world’s reserve currency out of the ground.
In our view, gold stocks represent a bona fide growth sector in an otherwise dreadful equity market. All other equity sectors are weakening due to sovereign uncertainty and the reemergence of soundly weak economic data. The recent disconnect between gold equities and bullion isn’t new either. We’ve seen it before over the past decade, and the returns generated after previous divergences have averaged around 26% (see Table 2). Given the recent performance correlations, the HUI’s breakout above 600 and spot gold now firmly above $1600, we expect this rebound in gold equities to be prolonged and much more significant in percentage terms.
Equity investors shouldn’t let $1800 gold dissuade them from participating in precious metals equities. The world is still dramatically underexposed to gold, and we firmly believe it should represent a higher percentage of investors’ total portfolios today. The fact remains that both gold and silver continue to trade well below their inflation-adjusted highs in nominal terms, and the market is now beginning to acknowledge the profit potential that precious metals equities offer at today’s bullion prices. We believe the equities will offer more upside than the bullion over time. Many of the smaller names are well priced and have momentum behind them. The prospects for gold stocks look extremely bright.
First and foremost: the sell-side’s abysmal gold price estimates. While the futures market is comfortably forecasting a continuation of today’s levels, the majority of sell-side analysts refuse to update their gold price estimates to reflect its recent strength. A rising gold price is normally a bad sign for the broader equity markets, and generally indicates a bearish trend. As bears ourselves, we’re completely fine with this, and invest accordingly. But the sell-side has difficulty pairing bearishness with new underwriting opportunities. It doesn’t mean you have to believe their price forecasts however.
The second reason is gold’s volatility. The amount of paper gold and silver contracts that trade on the futures and equities exchanges still dwarf the amount of actual physical trading that takes place. Paper markets continue to set price discovery – thereby allowing for dramatic volatility with little or no influence from actual physical fundamentals. In the LBMA market, for example, market participants traded an average 19.6 million ounces of gold PER DAY in July 2011.1,2 Keep in mind that the total gold mine production in 2010, globally, was approximately 86.5 million ounces. Global gold mine production is not expected to increase significantly year-over-year, so the LBMA is essentially trading a year’s worth of production in less than a week. And this is just ONE market. When you add the COMEX futures and gold ETFs, the paper trading volume becomes absurdly high. When price discovery is dictated by levered paper contracts with no physical backing, it’s extremely easy and relatively inexpensive to jostle the spot price around. The result for gold has been many days of extreme downside volatility, despite a strong and consistent overall upward trend. Investors don’t like volatility – and the constant whipsawing has probably kept many of them away from the gold equity sector as a result.
Thirdly – investors still remember how badly gold equities got crushed in 2008. There was a reason they sold off so aggressively however – they were the most profitable positions investors owned going into the ‘08 crisis. Gold equities had enjoyed a strong bull trend going back to 2001, with the HUI Index appreciating by 980% from its November 2000 low through to August 2008. Investor behaviour is fairly consistent – when panic hits, you sell your winning positions first.
In many of the funds we manage at Sprott, we’ve transitioned out of gold bullion and into gold equities to better participate in the continuation of the trend indicated above. As long-time investors in this space, we can assure you that the production growth rates will be significantly higher in the junior stocks. They continue to trade at discounted valuations, and we believe they offer the best opportunity to build exposure. Margin expansion is the key metric for this industry, and the market is now acknowledging the miners’ improvement in margin capture – which has occurred despite the increase in capital and operating costs. We meet with a large number of gold mining management teams on a weekly basis, and based on those meetings, it appears that the average cost of producing an ounce of gold today, all in, is now around $800. At $1,200 gold, these companies can capture roughly $400 in EBITDA. At $1800 gold, however, they’re now capturing $1,000 per ounce in EBITDA - representing an increase of 150% in profit margin. That is significantly far above what any other equity sector has been able to generate over the past year.
Amazingly – despite this new reality for gold producers, we are still finding opportunities in select gold and silver mining companies that can be purchased today at 2-3 times their 2-year-out forecasted cash flow. These multiples are based on the current gold and silver spot price, and if these companies hit their production targets, and gold and silver continue their appreciation – we may discover that these stocks were trading at less than 1 times 2-year-out cash flow today. Having been in the business for many years, we can tell you that investing in a stock at 1 times 2-year-out cash flow tends to be a winning proposition – let alone in an industry that literally mines the world’s reserve currency out of the ground.
In our view, gold stocks represent a bona fide growth sector in an otherwise dreadful equity market. All other equity sectors are weakening due to sovereign uncertainty and the reemergence of soundly weak economic data. The recent disconnect between gold equities and bullion isn’t new either. We’ve seen it before over the past decade, and the returns generated after previous divergences have averaged around 26% (see Table 2). Given the recent performance correlations, the HUI’s breakout above 600 and spot gold now firmly above $1600, we expect this rebound in gold equities to be prolonged and much more significant in percentage terms.
Equity investors shouldn’t let $1800 gold dissuade them from participating in precious metals equities. The world is still dramatically underexposed to gold, and we firmly believe it should represent a higher percentage of investors’ total portfolios today. The fact remains that both gold and silver continue to trade well below their inflation-adjusted highs in nominal terms, and the market is now beginning to acknowledge the profit potential that precious metals equities offer at today’s bullion prices. We believe the equities will offer more upside than the bullion over time. Many of the smaller names are well priced and have momentum behind them. The prospects for gold stocks look extremely bright.
Read the full article here:
Sunday, October 9, 2011
Tuesday, September 27, 2011
Eric Sprott backs Carney in Dimon spat
"In the fight to put risk-limiting regulations on banks, Mark Carney has a big name in his corner: Eric Sprott.
After Mr. Carney ended up in a well-publicized argument with JP Morgan Chase chief executive officer Jamie Dimon about whether regulators are on the right track, Mr. Sprott wrote an open letter to The Globe and Mail backing Mr. Carney."
After Mr. Carney ended up in a well-publicized argument with JP Morgan Chase chief executive officer Jamie Dimon about whether regulators are on the right track, Mr. Sprott wrote an open letter to The Globe and Mail backing Mr. Carney."
Letter:
Dear Sir,
I wish to express my firm support for Mark Carney’s recent financial regulation speech in Washington. Despite Mr. Dimon’s alleged criticism of Mr. Carney’s remarks, the fact remains that we would not be in the present situation today were it not for the excessive overleverage and flagrant misappropriation of capital undertaken by the world’s largest banking corporations.
It has been our view for many years that the world’s largest banks are operating with leverage ratios of over 20-to-1. We are now in an environment where all financial assets, including currencies, can change 5-10% in a single week (many change by that percentage in a single day – see the Swiss Franc’s 9.5% depreciation against the US dollar on September 6th, 2011). With volatility of that magnitude, the practice of maintaining such leverage is not only imprudent, it is irresponsible.
We have long maintained that all banks should make stronger efforts to bolster their capital reserves. It should not be the responsibility of government to rescue these corporations if they continue to make the same mistakes, and engage in the same risks, year after year. In that vein, we must also question why banks were allowed to reinstate their dividends so quickly after the 2008 crisis. In France, for example, where French banks are currently experiencing deposit withdrawals, one wonders how much stronger they would be today had they initiated a more prudent recapitalization policy.
In our opinion, the current economic crisis is still, at its heart, a banking crisis. Mr. Dimon’s alleged criticism reflects his inability to acknowledge this. Banking regulation is a wholly crucial issue and we stand behind Mr. Carney’s attempts to address it.
Yours sincerely,
Eric Sprott, FCA
Sprott Asset Management LP
200 Bay Street, Suite 2700
Dear Sir,
I wish to express my firm support for Mark Carney’s recent financial regulation speech in Washington. Despite Mr. Dimon’s alleged criticism of Mr. Carney’s remarks, the fact remains that we would not be in the present situation today were it not for the excessive overleverage and flagrant misappropriation of capital undertaken by the world’s largest banking corporations.
It has been our view for many years that the world’s largest banks are operating with leverage ratios of over 20-to-1. We are now in an environment where all financial assets, including currencies, can change 5-10% in a single week (many change by that percentage in a single day – see the Swiss Franc’s 9.5% depreciation against the US dollar on September 6th, 2011). With volatility of that magnitude, the practice of maintaining such leverage is not only imprudent, it is irresponsible.
We have long maintained that all banks should make stronger efforts to bolster their capital reserves. It should not be the responsibility of government to rescue these corporations if they continue to make the same mistakes, and engage in the same risks, year after year. In that vein, we must also question why banks were allowed to reinstate their dividends so quickly after the 2008 crisis. In France, for example, where French banks are currently experiencing deposit withdrawals, one wonders how much stronger they would be today had they initiated a more prudent recapitalization policy.
In our opinion, the current economic crisis is still, at its heart, a banking crisis. Mr. Dimon’s alleged criticism reflects his inability to acknowledge this. Banking regulation is a wholly crucial issue and we stand behind Mr. Carney’s attempts to address it.
Yours sincerely,
Eric Sprott, FCA
Sprott Asset Management LP
200 Bay Street, Suite 2700
Read the full article at the Globe and Mail here:
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Biggest Names Discuss Silver, Gold and the Global Economy - Follow Up Call
Some of the biggest names in Gold and Silver discuss the current market turmoil. Including our very own Gold and Silver Vigilante, Eric Sprott.
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Monday, September 26, 2011
This Billionaire Hedge Fund Manager Isn't On Forbes' Billionaires List?
The annual Forbes' world's billionaires list is out this week that came out earlier this year has one name we know that's missing.
Eric Sprott, a 40-year veteran in the investment industry, is believed to have a net worth of at least $1.3 billion, according to Bloomberg Business Week.
However, his name is nowhere to be found on the list... odd...
- Read the full article here:
http://www.businessinsider.com/meet-the-billionaire-hedge-fund-manager-who-didnt-make-forbes-list-2011-9
However, his name is nowhere to be found on the list... odd...
- Read the full article here:
http://www.businessinsider.com/meet-the-billionaire-hedge-fund-manager-who-didnt-make-forbes-list-2011-9
Saturday, September 24, 2011
Eric Sprott - The Single Most Important Economic Indicator
Just how bad have things been at the consumer level? Hedge fund guru Eric Sprott said the single-most important economic indicator of the past four months came from Wal-Mart chief executive Mike Duke, who literally said that his customers were “running out of money” much faster than they were a year ago. His evidence: customers are doing their bulk shopping at the beginning of every month (minutes after cashing their paycheques) and business drops off right after that.
“People’s incomes haven’t been going up, but their costs have,” Mr. Sprott said. “It’s palpable what’s happening, and it’s not good.”
His favourite “negative” indicators include U.S. bank failures (which increase every week) and over-leverage in the banking system (a huge problem in Europe). But the lesson of the past few weeks is that any investor can find a negative indicator to suit his or her taste right now. They all boiled over into a panic on Thursday, and if all those Harvard MBA recruits want to keep their jobs, that panic had better recede pretty soon.
“People’s incomes haven’t been going up, but their costs have,” Mr. Sprott said. “It’s palpable what’s happening, and it’s not good.”
His favourite “negative” indicators include U.S. bank failures (which increase every week) and over-leverage in the banking system (a huge problem in Europe). But the lesson of the past few weeks is that any investor can find a negative indicator to suit his or her taste right now. They all boiled over into a panic on Thursday, and if all those Harvard MBA recruits want to keep their jobs, that panic had better recede pretty soon.
- Read the full article here:
Friday, September 23, 2011
Sprott Money - We have run out of physical silver
“We have completely run out of physical silver, so we are temporarily out of stock."
- Larisa Sprott of Sprott Money
Tuesday, September 20, 2011
Equity investors shouldn’t let $1800 gold dissuade them from participating in precious metals equities
Something has changed recently, however. A new divergence has arisen in the precious metals equity market – a subtle, but plainly evident shift in recent daily performance.
In many of the funds we manage at Sprott, we’ve transitioned out of gold bullion and into gold equities to better participate in the continuation of the trend indicated above. As long-time investors in this space, we can assure you that the production growth rates will be significantly higher in the junior stocks. They continue to trade at discounted valuations, and we believe they offer the best opportunity to build exposure. Margin expansion is the key metric for this industry, and the market is now acknowledging the miners’ improvement in margin capture – which has occurred despite the increase in capital and operating costs
We meet with a large number of gold mining management teams on a weekly basis, and based on those meetings, it appears that the average cost of producing an ounce of gold today, all in, is now around $800. At $1,200 gold, these companies can capture roughly $400 in EBITDA. At $1800 gold, however, they’re now capturing $1,000 per ounce in EBITDA – representing an increase of 150% in profit margin. That is significantly far above what any other equity sector has been able to generate over the past year.
Amazingly – despite this new reality for gold producers, we are still finding opportunities in select gold and silver mining companies that can be purchased today at 2-3 times their 2-year-out forecasted cash flow. These multiples are based on the current gold and silver spot price, and if these companies hit their production targets, and gold and silver continue their appreciation – we may discover that these stocks were trading at less than 1 times 2-year-out cash flow today. Having been in the business for many years, we can tell you that investing in a stock at 1 times 2-year-out cash flow tends to be a winning proposition – let alone in an industry that literally mines the world’s reserve currency out of the ground.
Equity investors shouldn’t let $1800 gold dissuade them from participating in precious metals equities. The world is still dramatically underexposed to gold, and we firmly believe it should represent a higher percentage of investors’ total portfolios today. The fact remains that both gold and silver continue to trade well below their inflation-adjusted highs in nominal terms, and the market is now beginning to acknowledge the profit potential that precious metals equities offer at today’s bullion prices. We believe the equities will offer more upside than the bullion over time. Many of the smaller names are well priced and have momentum behind them. The prospects for gold stocks look extremely bright.
In many of the funds we manage at Sprott, we’ve transitioned out of gold bullion and into gold equities to better participate in the continuation of the trend indicated above. As long-time investors in this space, we can assure you that the production growth rates will be significantly higher in the junior stocks. They continue to trade at discounted valuations, and we believe they offer the best opportunity to build exposure. Margin expansion is the key metric for this industry, and the market is now acknowledging the miners’ improvement in margin capture – which has occurred despite the increase in capital and operating costs
We meet with a large number of gold mining management teams on a weekly basis, and based on those meetings, it appears that the average cost of producing an ounce of gold today, all in, is now around $800. At $1,200 gold, these companies can capture roughly $400 in EBITDA. At $1800 gold, however, they’re now capturing $1,000 per ounce in EBITDA – representing an increase of 150% in profit margin. That is significantly far above what any other equity sector has been able to generate over the past year.
Amazingly – despite this new reality for gold producers, we are still finding opportunities in select gold and silver mining companies that can be purchased today at 2-3 times their 2-year-out forecasted cash flow. These multiples are based on the current gold and silver spot price, and if these companies hit their production targets, and gold and silver continue their appreciation – we may discover that these stocks were trading at less than 1 times 2-year-out cash flow today. Having been in the business for many years, we can tell you that investing in a stock at 1 times 2-year-out cash flow tends to be a winning proposition – let alone in an industry that literally mines the world’s reserve currency out of the ground.
Equity investors shouldn’t let $1800 gold dissuade them from participating in precious metals equities. The world is still dramatically underexposed to gold, and we firmly believe it should represent a higher percentage of investors’ total portfolios today. The fact remains that both gold and silver continue to trade well below their inflation-adjusted highs in nominal terms, and the market is now beginning to acknowledge the profit potential that precious metals equities offer at today’s bullion prices. We believe the equities will offer more upside than the bullion over time. Many of the smaller names are well priced and have momentum behind them. The prospects for gold stocks look extremely bright.
Saturday, September 17, 2011
Buy Gold & Silver - Protect Yourself!
“There’s great risk in owning paper assets because of what’s going in the paper-asset world,” Mr. Sprott said. “We have sovereign risks, we have bank risks, we have budget deficits, we have irresponsible monetary policies and fiscal policies, all of which leads you to a common conclusion: How do I protect myself?”
Tuesday, September 13, 2011
Default threat boosts case for gold, Sprott says
The risk of Greece defaulting on its debt may be roiling the world’s financial markets, but it’s good news for Eric Sprott.
Investors seeking refuge from the financial storm drove the price of gold to a record high last week, and Mr. Sprott is optimistic that demand for the precious metal will expand as fears grow that Greece and other European countries will fail to repay their massive debts.
“Greece either defaults or they print money, both of which are great for gold,” said Mr. Sprott, chairman of Toronto-based Sprott Inc, which holds $2.2-billion of gold and $900-million of silver among its $11-billion in assets.
While acknowledging that a Greek default would lead to “a crescendo of problems” for the global financial system, he argues that it would be unambiguously positive for haven commodities such as gold. “The market has made gold the reserve currency. The market has already made that decision, that this is the safest asset when there is potential financial contagion.”
- Read the full story here:
http://www.theglobeandmail.com/globe-investor/default-threat-boosts-case-for-gold-sprott-says/article2164929/
I think silver will outperform gold in the next decade
“I think silver will outperform gold in the next decade. If silver should trade at a 16 to 1 ratio (to gold), it will probably trade at 10 to 1 because things tend to overshoot. Let’s use Jim Sinclair’s $12,000 target, that would suggest $1,200 silver, which is a thirty bagger from here...The biggest reason it (silver) should go there is people should fear bank deposits, that’s what I think they should fear.”
- Eric Sprott, via a King World News Interview, Read the full interview here:
Saturday, September 10, 2011
King World News Interviews Eric Sprott - Silver a 30 Bagger?
Eric Sprott, was recently interviewed by Eric King, of King World News. This is a powerful interview, where Mr. Sprott speaks of Gold, Mining shares and Silver becoming an eventually 30 bagger from these prices! This is an interview you won't want to miss.
Hear the full interview here:
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/9/10_Eric_Sprott.html
Hear the full interview here:
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/9/10_Eric_Sprott.html
Thursday, September 1, 2011
Top investor (Eric Sprott) buys into Halifax firm
An influential Toronto firm has invested more than $2 million in a junior Halifax exploration company.
Mountain Lake Resources announced Tuesday that it has arranged a private placement with Sprott Asset Management LP of 3.1 million units at 65 cents each to raise $2,015,000.
The deal gives Sprott 3.1 million common shares of the company that is looking for gold in Newfoundland and Labrador, plus the ability to buy another 1.6 million Mountain Lake shares at 80 cents a piece within two years of its closing date.
"We plan to raise a fair bit of money between now and the end of the year for our program for next year, which will be fairly aggressive," Gary Woods, president and chief executive officer of Mountain Lake, said Wednesday from his Port Williams, Kings County, home.
Woods said he did the deal Monday directly with Eric Sprott, a famed investor and founder of Sprott Asset Management...
Mountain Lake Resources announced Tuesday that it has arranged a private placement with Sprott Asset Management LP of 3.1 million units at 65 cents each to raise $2,015,000.
The deal gives Sprott 3.1 million common shares of the company that is looking for gold in Newfoundland and Labrador, plus the ability to buy another 1.6 million Mountain Lake shares at 80 cents a piece within two years of its closing date.
"We plan to raise a fair bit of money between now and the end of the year for our program for next year, which will be fairly aggressive," Gary Woods, president and chief executive officer of Mountain Lake, said Wednesday from his Port Williams, Kings County, home.
Woods said he did the deal Monday directly with Eric Sprott, a famed investor and founder of Sprott Asset Management...
- Read the full story here:
Tuesday, August 23, 2011
Silver the Investment of this Decade, but Gold isn't out of the picture yet!
Mr. Sprott said his comment about silver does not mean he is abandoning gold altogether. “Anything I said about it being the resource of the last decade was not to suggest that it wasn’t going to do well this decade,” he said. “It’s just I think silver will do better.”
- Eric Sprott
Saturday, August 20, 2011
King World News Interviews Eric Sprott - 08/20/2011
Eric Sprott was just interview by King World News, the premier alternative media website. Such issues, such as Gold, Silver, and the recent GATA conference were discussed. A must hear interview.
Listen to the King World News interview with Eric Sprott, here:
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/8/20_Eric_Sprott_files/Eric%20Sprott%208%3A20%3A2011.mp3
Listen to the King World News interview with Eric Sprott, here:
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/8/20_Eric_Sprott_files/Eric%20Sprott%208%3A20%3A2011.mp3
The Greatest Trade of All Time
"We are of the view that the appetite for sovereign paper promises will continue to decline, and such promises will continue to lose their value relative to real assets, like gold. What needs to be understood is that paper promises (sovereign debt and fiat currencies) are ‘faith-based assets’. They have no inherent value. They have perceived value in that they have historically been convertible into real assets. With their value decreasing against real assets, however, we are of the view that holders of faith-based assets will be increasingly unwilling to store their wealth in them. This will drive up the prices of real assets versus faith-based assets, a process which we have already begun to see en mass."
Read the full article, by Kevin Bambrough, a member of Sprott Assest Management, Here:
Friday, August 19, 2011
There will be no buyers of distressed assets in the sizes that European banks hold today
"EU banks are also highly levered, but their situation is further complicated by the fact that what was once the most liquid and secure loan on European banks’ balance sheets – sovereign debt – is no longer liquid and secure. This makes EU banks extremely vulnerable to deposit withdrawals as it forces them to approach the ECB for help to maintain liquidity. There is only so much the ECB can do – if a true ‘liquidity event’ takes place, we can all rest assured that there will be no buyers of distressed assets in the sizes that European banks hold today, sovereign bonds, or not."
Thursday, August 18, 2011
Eric Sprott - The Price of Silver Should be $110 to $120 Today
“We’ve put a notice in that we are going to sell two million shares of the Sprott Physical Trust, which would generate something like $32 million of proceeds, and it’s my intention to move that into (physical) silver. As you know I have opined very often that I think silver should trade at a 16/1 ratio to gold. That would imply a price today of something like $110 or $120, (and today) it’s $40.
...The availability in dollar terms of gold is 100 times that of silver, so you can’t keep buying at a one to one ratio without something giving here. As long as people keep buying it you know the price has to go up, there is very limited supply. I think Comex has something like 27 million ounces (available for purchase), which is all of one billion dollars. What is one billion dollars these days? I mean there’s probably 500 different organizations that could clean them out.”
...The availability in dollar terms of gold is 100 times that of silver, so you can’t keep buying at a one to one ratio without something giving here. As long as people keep buying it you know the price has to go up, there is very limited supply. I think Comex has something like 27 million ounces (available for purchase), which is all of one billion dollars. What is one billion dollars these days? I mean there’s probably 500 different organizations that could clean them out.”
- Read the full article are King World News, here:
Think gold may lose some lustre? Eric Sprott sees a silver lining
Eric Sprott, the perennial gold enthusiast, has his sights set on a new precious metal.
Mr. Sprott’s charitable organization, The Sprott Foundation, is selling two million units of its gold holdings and using the money to buy silver.
The move comes as gold veers close to $1,800 (U.S.) per ounce, and less than a week after Mr. Sprott had declared the metal “the investment of the last decade” in an interview with GoldMoney Foundation. “I think silver is going to be the investment of this decade.”
Mr. Sprott’s charitable organization, The Sprott Foundation, is selling two million units of its gold holdings and using the money to buy silver.
The move comes as gold veers close to $1,800 (U.S.) per ounce, and less than a week after Mr. Sprott had declared the metal “the investment of the last decade” in an interview with GoldMoney Foundation. “I think silver is going to be the investment of this decade.”
- Read the full article here:
Friday, August 12, 2011
Markets at a Glance: The Real Banking Crisis
We believe that gold and silver are the ultimate alternative for a chequing account in a vulnerable banking jurisdiction, and whether the ECB prints more euros or eventually defaults, both outcomes will continue to support a robust demand for precious metals as an alternative currency.
Read the full article by Eric Sprott and David Baker Here:
http://www.sprott.com/Docs/MarketsataGlance/2011/07_11_The%20Real%20Banking%20Crisis.pdf?utm_source=Sprott+Money+Newsletter&utm_campaign=6d4e960c4e-Sprott_Money_Newsletter_August_11_20118_11_2011&utm_medium=email
Read the full article by Eric Sprott and David Baker Here:
http://www.sprott.com/Docs/MarketsataGlance/2011/07_11_The%20Real%20Banking%20Crisis.pdf?utm_source=Sprott+Money+Newsletter&utm_campaign=6d4e960c4e-Sprott_Money_Newsletter_August_11_20118_11_2011&utm_medium=email
Saturday, August 6, 2011
Silver price update from Eric Sprott and James Turk
In this video, recorded August 4 2011, Eric Sprott, Chairman of Sprott Asset Management, and James Turk, Director of the GoldMoney Foundation, talk about how there isn't enough silver in the silver market to back existing "paper silver" commitments. Sprott thinks that "silver will be the investment of this decade". Stay tuned to GoldMoney Research for the rest of James Turk's interview with Eric Sprott, which will be released shortly.
Thursday, August 4, 2011
Eric Sprott, Canada's 'hidden billionaire'
His wealth is not a surprise to anyone in Canada who has watched him prosper, but investor Eric Sprott is under the radar enough in the rest of the world to land on a new global list of "hidden billionaires."
Bloomberg Markets magazine ranks Mr. Sprott as one of the globe's unsung billionaires, along with a French advertising heiress, a German appliance entrepreneur and a Moroccan property developer.
Mr. Sprott's wealth is estimated by Bloomberg at "at least $1.3-billion (U.S.)," based mostly on his publicly disclosed holdings in Sprott Inc.(SII-T9.010.010.11%) and some other Sprott-related companies, including Sprott Physical Gold Trust, stakes that have both hugely benefited from the run in gold. There may be more wealth in other private holdings, acknowledged Matthew Miller, Bloomberg's new billionaire reporter (yes, they have such a thing)...
Read the full article here:
http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/eric-sprott-canadas-hidden-billionaire/article2119318/
Bloomberg Markets magazine ranks Mr. Sprott as one of the globe's unsung billionaires, along with a French advertising heiress, a German appliance entrepreneur and a Moroccan property developer.
Mr. Sprott's wealth is estimated by Bloomberg at "at least $1.3-billion (U.S.)," based mostly on his publicly disclosed holdings in Sprott Inc.(SII-T9.010.010.11%) and some other Sprott-related companies, including Sprott Physical Gold Trust, stakes that have both hugely benefited from the run in gold. There may be more wealth in other private holdings, acknowledged Matthew Miller, Bloomberg's new billionaire reporter (yes, they have such a thing)...
Read the full article here:
http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/eric-sprott-canadas-hidden-billionaire/article2119318/
Wednesday, July 27, 2011
Wednesday, July 20, 2011
Sprott Prices PHYS Follow On Offering, Raises $266 Million, To Buy Over 5 Tonnes Of Physical Gold
As was announced before, Sprott's PHYS fund (which previously had not disclosed terms of its offering) has just priced 19 million units at $14.00/unit for a total raise of $266 million, all of which will go to removing another 5 tonnes of physical gold out of the broader lendable circulation.
Read the full story at Zerohedge here:
http://www.zerohedge.com/article/sprott-prices-phys-follow-offering-raises-266-million-buy-over-5-tonnes-physical-gold
Read the full story at Zerohedge here:
http://www.zerohedge.com/article/sprott-prices-phys-follow-offering-raises-266-million-buy-over-5-tonnes-physical-gold
Monday, July 18, 2011
Eric Sprott: SILVER TO GO SUPERNOVA, PAPER MARKETS ARE A JOKE!
Eric Sprott - Paper Markets Are A Joke: Prepare for Bullion Prices to Go Supernova.
Thursday, July 14, 2011
Sprott Physical Gold Trust Announces Follow-on Offering of Trust Units
Sprott Physical Gold Trust (the "Trust") (TSX: PHY.U)(NYSE: PHYS), a trust created to invest and hold substantially all of its assets in physical gold bullion and managed by Sprott Asset Management LP, announced today that it has launched a follow-on offering (the "Offering") of transferable, redeemable units of the Trust ("Units").
The Trust will use the net proceeds of this Offering to acquire physical gold bullion in accordance with the Trust's objective and subject to the Trust's investment and operating restrictions described in the prospectus related to this Offering. Under the trust agreement governing the Trust, the net proceeds of the Offering per unit must be not less than 100% of the most recently calculated net asset value per Unit of the Trust prior to, or upon determination of, pricing of the offering.
http://www.sprottphysicalgoldtrust.com/Investors/Press-Releases/Press-Release-Details/2011/Sprott-Physical-Gold-Trust-Announces-Follow-on-Offering-of-Trust-Units1125973/default.aspx
The Trust will use the net proceeds of this Offering to acquire physical gold bullion in accordance with the Trust's objective and subject to the Trust's investment and operating restrictions described in the prospectus related to this Offering. Under the trust agreement governing the Trust, the net proceeds of the Offering per unit must be not less than 100% of the most recently calculated net asset value per Unit of the Trust prior to, or upon determination of, pricing of the offering.
http://www.sprottphysicalgoldtrust.com/Investors/Press-Releases/Press-Release-Details/2011/Sprott-Physical-Gold-Trust-Announces-Follow-on-Offering-of-Trust-Units1125973/default.aspx
Monday, July 11, 2011
STUNNING DEVELOPMENTS IN SILVER, PRICE TO EXPLODE: Eric Sprott
Paper Markets Are A Joke. Prepare for Bullion Prices to Go Supernova!
Thursday, July 7, 2011
SILVER GURUS Paper to Physical Ratio of 25, 100, 500 to 1 Eric Sprott, Martenson, Bix Weir
"This is a long overdue precious metals update discussing the massive paper manipulation of the silver market. Featuring Eric Sprott, Chris Martenson and by phone, Bix Weir."
-SGTBull007
-SGTBull007
Tuesday, July 5, 2011
Eric Sprott: "Paper Markets Are A Joke: Prepare For Bullion Prices To Go Supernova"
"I think that the prices will continue higher. I mean the amount of money printing is unbelievable. I just think you have to take that initial stand in terms of buying it. I use the James Turk analogy: just keep dollar averaging. We have gone up eleven years in a row, this year it looks like it will be no exception; I would certainly think next year will be no exception. If we ever have QE3 announced, I think gold and silver will just go absolutely bonkers here. And so I just think you have got to step in there and own it; we’ve had these fears all the way along. You know, $400, and $500 and $700 and $800 dollar gold, everyone was afraid it was a one-time thing. I don’t think it is a one-time thing, I think it is a secular thing. It’s going to carry on for quite a while here until we find some resolution of these problems. And the resolution probably will be some form of default where people just have to expunge debts that cannot be repaid. So, you have got to be in some asset which will not be affected by that." So predicts Eric Sprott, founder of Sprott Asset Management and famed investor. In this wide-ranging interview, he shares his insights on the precious metals markets - specifically what investors need to be aware of in terms of the way the markets are currently managed (manipulated), the macro outlook for the economy (grim) and the true value of gold and silver (very underpriced; particularly silver).
Read the full article at ZeroHedge here:
http://www.zerohedge.com/article/eric-sprott-paper-markets-are-joke-prepare-bullion-prices-go-supernova
Read the full article at ZeroHedge here:
http://www.zerohedge.com/article/eric-sprott-paper-markets-are-joke-prepare-bullion-prices-go-supernova
Saturday, July 2, 2011
Caveat Venditor!
There is no doubt that speculative dollars have been flowing into the silver market. We note that in April record trading volumes were registered in the SLV, Comex futures, LBMA transfers, and the Shanghai Gold Exchange futures. In fact, converting the average daily trading volume in the aforementioned silver instruments to the amount of ounces of silver they are supposed to represent, there were on average, over 1.1 billion ounces worth of silver traded every day in the month of April. Truly a staggering number when contrasted against the actual amount of silver available for investment. To wit, the world will only supply about 979 million ounces this year from mine and recycling of scrap, of which it is estimated that 657 million ounces will be used up for non-investment purposes. So in effect, that leaves roughly only 322 million ounces available this year for investment purposes. Converting to days (recall that at least 1.1 billion ounces traded each day) it leaves only about 1.3 million ounces per trading day of available supply. So, we are essentially trading the amount of physical silver actually available for investment, 891 times over each day! It really begs the question; just what are people trading in these markets?
Consider the largest and most prominent of those markets - the Comex, which we believe has owned an effective monopoly on silver price discovery for decades. In fact, the Comex churned over 800 million ounces of silver futures and options on average each day in April. Indeed, notwithstanding the massive but very opaque over-the-counter silver derivatives market, trading on the Comex dwarfs both the physical and the other (known) paper silver markets, combined. Despite its dynamics being relatively complex and generally not well understood by most, the world’s financial community continues to view trading on the Comex as representative of the fundamentals for the physical silver markets. A market built on a high amount of leverage, both the buyers and sellers of Comex futures and options contracts are able to establish a position in "silver" with pennies on the dollar in collateral and even more astonishingly, no physical silver backing the contracts at all. The following charts illustrate just how unreal these markets have become.
Read Eric Sprotts latest article here:
http://www.industrymailout.com/Industry/Home/5274/22439/images/0611%20Caveat%20Venditor.pdf
Consider the largest and most prominent of those markets - the Comex, which we believe has owned an effective monopoly on silver price discovery for decades. In fact, the Comex churned over 800 million ounces of silver futures and options on average each day in April. Indeed, notwithstanding the massive but very opaque over-the-counter silver derivatives market, trading on the Comex dwarfs both the physical and the other (known) paper silver markets, combined. Despite its dynamics being relatively complex and generally not well understood by most, the world’s financial community continues to view trading on the Comex as representative of the fundamentals for the physical silver markets. A market built on a high amount of leverage, both the buyers and sellers of Comex futures and options contracts are able to establish a position in "silver" with pennies on the dollar in collateral and even more astonishingly, no physical silver backing the contracts at all. The following charts illustrate just how unreal these markets have become.
Read Eric Sprotts latest article here:
http://www.industrymailout.com/Industry/Home/5274/22439/images/0611%20Caveat%20Venditor.pdf
Wednesday, June 22, 2011
Fund View: Sprott says buy oil stocks, dump natgas and uranium
"Buy oil stocks on high crude prices but sell uranium and natural gas, was the advise of a fund manager at Sprott Asset Management's energy fund, which invests in small and mid-sized Canadian companies."
- Read the full article at Reuters here:
http://www.reuters.com/article/2011/06/17/us-fundview-sprott-idUSTRE75G48620110617
- Read the full article at Reuters here:
http://www.reuters.com/article/2011/06/17/us-fundview-sprott-idUSTRE75G48620110617
Sunday, June 19, 2011
In my heart of hearts I believe it was a manipulation
After a record surge in prices towards a record high just short of $50, silver crashed back down in May to around $32.
Many analysts have struggled to give a reason to these large swings, with some speculating the extreme depreciation was due to price manipulation. “In my heart of hearts I believe it was a manipulation. There was no market, it was a setup. They‘ve just pushed it down. It‘s ridiculous,” said Eric Sprott, CEO of Sprott Asset Management.
Looking ahead, Sprott is preparing for the next bull – run in silver if the US implements QE3. “A lot of that QE1 and QE2 are giving a tailwind to gold and silver. If you want to tell me there‘s going to be a QE3, I‘m going to tell you silver will hit $50 before we even know it,” Sprott added.
Read the full article here:
Saturday, June 18, 2011
If you Fear the Banking System, you go to Gold
“If you’re in Ireland today, you don’t have any money in banks, particularly if you’re non-Irish," he said. "If you’re in Greece you’re taking your money out. In Portugal you probably have concerns. If you have a fear of the banking system, you go to things like gold.”
Sunday, June 12, 2011
Eric Sprott - Interviewed by King World News
Eric Sprott was interviewed recently by King World News on June 11th, such topics as Gold, Silver and the Ongoing Financial Disaster were discussed.
You can listen to the full King World News Audio interview, by visiting this the following link:
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/11_Eric_Sprott.html
You can listen to the full King World News Audio interview, by visiting this the following link:
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/11_Eric_Sprott.html
Saturday, June 11, 2011
Eric Sprott - We’re Headed Over a Cliff, Be Wary of Paper Assets
“Well I’ve always believed the fundamental problem with the capitalist system if you will, is the fact that the banks are over-levered. There is only one way to get rid of over-leverage and that is to shrink your balance sheet.
I always find it interesting that every time a bank fails we find out exactly what the losses were and typically not only did the bank lose their capital, but they lost their capital six times over. That’s the average cost, which really means that your dollar of assets was undervalued by about 30 cents on the dollar and I think that’s the case almost throughout the banking system. So if we ever marked things to market, we would be in big trouble.”
Read the full interview here:
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/6/10_Eric_Sprott_-_Were_Headed_Over_a_Cliff,_Be_Wary_of_Paper_Assets.html
Read the full interview here:
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/6/10_Eric_Sprott_-_Were_Headed_Over_a_Cliff,_Be_Wary_of_Paper_Assets.html
Friday, June 10, 2011
Thursday, June 2, 2011
Sprott Inc Reports a 66-per-cent jump in First Quarter Profit
Canadian asset manager Sprott Inc. reported a 66-per-cent jump in first-quarter profit, helped by a rise in assets under management.
Net income rose to $10.6 million, or 7 cents a share, from $6.4 million, or 4 cents a share, a year ago. Total revenue rose 54 per cent to $39.5 million.
Assets under management for the hedge fund manager rose 88 per cent to $9.7 billion.
Shares of Sprott, which was founded by Bay St. contrarian investor Eric Sprott and taken public in 2008, closed at $8.66 on Wednesday on the Toronto Stock Exchange.
- Montreal Gazette
http://www.montrealgazette.com/business/Sprott+profit+jumps+managed+assets+rise/4880151/story.html
Net income rose to $10.6 million, or 7 cents a share, from $6.4 million, or 4 cents a share, a year ago. Total revenue rose 54 per cent to $39.5 million.
Assets under management for the hedge fund manager rose 88 per cent to $9.7 billion.
Shares of Sprott, which was founded by Bay St. contrarian investor Eric Sprott and taken public in 2008, closed at $8.66 on Wednesday on the Toronto Stock Exchange.
- Montreal Gazette
http://www.montrealgazette.com/business/Sprott+profit+jumps+managed+assets+rise/4880151/story.html
Wednesday, May 25, 2011
Eric Sprott to Speak at Gold Rush 2011 conference in London this Year
GATA is set to hold the Gold Rush 2011 conference in London this year, with returning speakers Eric Sprott of Sprott Asset Management and Brian A. Hinchcliffe, CEO of Kirkland Lake Gold.
The event, sponsored by Sprott Money, will be held from August 4 to 6 at the Savoy Hotel in London, England.
Read the full article here:
Saturday, May 21, 2011
If 3% of the People Demanded Physical Delivery of their Silver, there would be No Silver on the Comex
"One of the things we should look at is the trading of silver in the paper markets, I mean the Comex and the SLV. Last week it averaged 1.2 billion ounces per day. There is only 700 million ounces mined in a year. There is only 33 million ounces of physical silver that is available for delivery by the commercial shorters. If something like 3% of the people that were trading silver in one day demanded physical delivery, there would be no silver on the Comex.... The key market is the physical market. I don't think this raid is going to work."
- Eric Sprott
- Eric Sprott
Wednesday, May 18, 2011
Call Leaked: Biggest Names Discuss Silver (Eric Sprott is one of them)
"David Morgan hosts a call on Saturday, May 14th about silver that will be shocking to most! Includes and drive-by shooting and the Fed Reserve caught doing something illegal. Guest included, Eric Sprott, Bill Murphy, Rob Kirby, Bob Quartermain, Sean SGTReport and James Anderson in for Mike Maloney."
Monday, May 16, 2011
Eric Sprott - The Financial System is Massively Over-Levered
“I agree with the prices of precious metals. I’m not as much of a bull on base metals...I still worry about the financial system, it’s massively over-levered and will still come undone.”
Saturday, May 14, 2011
Friday, May 13, 2011
Eric Sprott Says Gold Is Now The World's Reserve Currency, Says Silver Was Manipulated Lower
Eric Sprott making headlines in Vegas:
- Zero Hedge
- SPROTT SAYS GOLD IS NOW THE WORLD'S RESERVE CURRENCY
- SPROTT SAYS SILVER WAS `MANIPULATED' DOWN IN PRICE
- SPROTT SAYS PEOPLE IN IRELAND, GREECE ALREADY FLEEING BANKS
- SPROTT SAYS SAVERS WILL FLEE BANKS TO PUT MONEY INTO GOLD
- Zero Hedge
Thursday, May 12, 2011
Max Keiser guest Eric Sprott on Commodities Prices
Max Keisers guest Eric Sprott talks about the commodities prices, and how the sudden downturn in prices is a temporary blip from profit takers. The underlying problem of G20 governments smashing the value of their currencies remains, so people continue to put their savings into anything that the governments cannot print or easily get their hands on.
Tuesday, May 10, 2011
A week ago we could have bought 1 Million Oz of Silver, now we can buy 1.3 Million Oz
"There are a lot of great things about silver going down,” Sprott said in a keynote presentation at the Hard Assets Investment Conference Monday. “We’re starting up a (new) silver fund tomorrow – available only in Canada. A week ago we could have bought 1 million oz. of silver and now we’ll be able to buy 1.3 million (oz.) for the same money,” he added.
- Read the full interview at Resouce Investor.com here:
http://www.resourceinvestor.com/News/2011/5/Pages/Sprott-on-Gold-vs-Silver-after-the-Selloff.aspx
- Read the full interview at Resouce Investor.com here:
http://www.resourceinvestor.com/News/2011/5/Pages/Sprott-on-Gold-vs-Silver-after-the-Selloff.aspx
The Secret of Oz
- Peter Schiff
- Peter Schiff
Monday, May 9, 2011
Sprott Launches Physical Silver Mutual Fund, Will Likely Soak Up Much Marginal Silver Inventory
And another major source of physical demand in the already very undersupplied silver market appears. Just released from Sprott Asset Management, who recently added to the perfect storm in silver by cashing out on the record PSLV premium and converting proceeds to miner stocks: "The Sprott Silver Bullion Fund is an innovative offering, being the first mutual fund in Canada to invest primarily in unencumbered, fully allocated silver bullion. The Fund's objective is to seek to provide a secure and liquid investment for investors seeking exposure to silver bullion without the inconvenience associated with direct investment." We can't wait to discover how many tons of silver this mutual fund will soak up imminently, and where the always exciting adventure of "COMEX registered silver" takes us next...
Full release:
Sprott Asset Management Expands its Industry Leading Family of Precious Metals Funds with First Silver Bullion Mutual Fund in Canada
TORONTO, May 9 /CNW/ - Sprott Asset Management LP ("Sprott") is pleased to announce that it has expanded its industry leading family of precious metals funds with the addition of the Sprott Silver Bullion Fund.
Sprott now offers five different precious metals funds including, Sprott Gold & Precious Minerals Fund, Sprott Gold Bullion Fund, Sprott Silver Bullion Fund, as well as the exchange-traded Sprott Physical Gold Trust and Sprott Physical Silver Trust.
"We have been very early and active investors in precious metals and we strongly believe that all investors should have an allocation to precious metals in their portfolios. With our newest fund, investors will have greater choice as to how they choose to gain exposure to this asset class." says James Fox, President of Sprott Asset Management.
The Sprott Silver Bullion Fund is an innovative offering, being the first mutual fund in Canada to invest primarily in unencumbered, fully allocated silver bullion. The Fund's objective is to seek to provide a secure and liquid investment for investors seeking exposure to silver bullion without the inconvenience associated with direct investment.
- Zero Hedge
http://www.zerohedge.com/article/sprott-launches-physical-silver-mutual-fund-will-likely-soak-much-marginal-silver-inventory
Full release:
Sprott Asset Management Expands its Industry Leading Family of Precious Metals Funds with First Silver Bullion Mutual Fund in Canada
TORONTO, May 9 /CNW/ - Sprott Asset Management LP ("Sprott") is pleased to announce that it has expanded its industry leading family of precious metals funds with the addition of the Sprott Silver Bullion Fund.
Sprott now offers five different precious metals funds including, Sprott Gold & Precious Minerals Fund, Sprott Gold Bullion Fund, Sprott Silver Bullion Fund, as well as the exchange-traded Sprott Physical Gold Trust and Sprott Physical Silver Trust.
"We have been very early and active investors in precious metals and we strongly believe that all investors should have an allocation to precious metals in their portfolios. With our newest fund, investors will have greater choice as to how they choose to gain exposure to this asset class." says James Fox, President of Sprott Asset Management.
The Sprott Silver Bullion Fund is an innovative offering, being the first mutual fund in Canada to invest primarily in unencumbered, fully allocated silver bullion. The Fund's objective is to seek to provide a secure and liquid investment for investors seeking exposure to silver bullion without the inconvenience associated with direct investment.
- Zero Hedge
http://www.zerohedge.com/article/sprott-launches-physical-silver-mutual-fund-will-likely-soak-much-marginal-silver-inventory
Thursday, May 5, 2011
Eric Sprott: The Government Lied... There is No More Silver!
"Speaking at the Casey Research Gold and Resource Summit, Eric Sprott told investors that there is no more silver left to go around, "There's $22 billion of silver available in the world, of which the ETFs already own half, and between you guys and us we probably own the other half... Which means there's nothing left."
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