Thursday, March 29, 2012

Mainstream Bashes Gold, But New Highs Coming

The mainstream bashes gold, including Chairman Bernanke ... indicating gold was an old, worthless standard that shouldn’t be considered. But I think those of us who have studied what’s going on in the world economic situation, the world money printing situation -- we’re very aware of the merits of gold.

The merits of gold get better by the day, but the mainstream tries to downplay it. It’s not something new. We’ve gone through this for twelve years now. But the majority of the main prognosticators in the world seems to think that gold is not an appropriate investment.

I think those of us who have championed it (gold) over the last twelve years have obviously been way more correct and we will have our day. There are strange things that happen in the paper COMEX market that negatively affect the prices of both (gold and silver).

My view here is that before we end the year we will hit new highs in both metals. Then the (mining) stocks would react. The big problem has been there is not this momentum in the prices of bullion, which is keeping people away from the gold stocks. If we can get the price of gold and silver going back up, I’m sure people will come back into the mining stocks.”

- Eric Sprott, via a recent King World News Interview, read the full interview here:

Monday, March 26, 2012

Silver to Reach it's All Time Highs this Year!

"Eric Sprott, who runs Toronto-based Sprott Asset Management LP, reckons silver is due for a bull run. Sprott says silver will reach its all-time high this year because of widespread nervousness about the fundamental health of the world economy, prompting many to hold precious metals."

- Read the full story here: 

Thursday, March 22, 2012

Endeavour Silver Provides Blueprint to Sprott’s Call to Action

"Eric Sprott, legendary gold and silver investor and chairman of Sprott Inc., famously issued an open letter to 17 of the world’s largest silver producers last year. The letter is well-known to the precious metals community because it challenged the mining industry to limit silver sales until prices increased. Unlike an OPEC style cartel, Sprott advocated that miners simply hold a portion of their cash reserves in the form of silver, in order to protect themselves and shareholders from irrational price corrections that take place too often in the silver market. Endeavour Silver not only heeded Sprott’s advice, but has already benefited from it.

Sprott’s “Call to Action” letter suggested, “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.” Furthermore, holding silver instead of cash as a form of savings allows silver miners to convert their silver into cash at an opportune time.

Endeavour Silver, a mid-cap silver mining company with operations in Mexico, is a perfect example of Sprott’s letter. The company has been parking excess cash in silver and gold on a short-term basis since 2008. Instead of falling victim to the volatile silver market, Endeavour “elected not to sell a significant portion of its metal production on the basis that the gold and silver prices were experiencing a major correction and the Company would be better served to hold the unsold metal in inventory until such time as the metal prices rebounded,” the company said in its earnings release on Tuesday. Endeavour held 980,000 ounces of silver and 5,400 ounces of gold at the end of 2011, compared to only 127,000 ounces of silver and 957 ounces of gold at the end of 2010..."

- Read the full article here:

Thursday, March 15, 2012

Unintended Consequences

"There is unfortunately no economic textbook to guide us through these strange times, but common sense suggests we should be extremely wary of the continued maneuvering by central banks. The more central banks print to save the system, the more the system will rely on their printing to stay solvent – and you cannot solve a debt problem with more debt, and you cannot print money without serious repercussions.

The central banks are fueling a growing distrust among the creditor nations that is forcing them to take pre-emptive actions with their currency reserves. Individual investors should take note and follow-suit, because it will be a lot easier to enjoy the “Year of the Central Bank” if you own things that can actually benefit from all their printing, as opposed to things that can only be destroyed by it."

- Read the full report here:

Saturday, March 10, 2012

King World News Interviews Eric Sprott - What Happened?!

King World News recently interviewed Eric Sprott. In this interview they discuss Gold, the financial system and what recently happened in the violent take down of Silver. 

Was it manipulation? Listen here to find out:

Sunday, March 4, 2012

What Happened in Gold & Silver is Stunning

“When I look at the silver market in particular, in a 30 minute span we had sellers of 225 million equivalent paper ounces, in a market that in one year the silver miners only produce 800 million ounces. So again, it’s the paper markets overwhelming the physical market. It’s stunning to me that on a day like Feb. 29th we traded 500 million ounces of silver.

No rational person could believe it had anything to do with the real market for silver...."

- Eric Sprott, via a recent King World News interview: