Monday, April 30, 2012

More Global Shocks Coming!

Eric Sprott was recently interviewed by King World News. In the interview they discuss the inevitable collapse of the banking system. Gold, Silver and mining shares. This is a must listen to interview. 

Listen to the full interview here:

Saturday, April 28, 2012

The Ponzi Scheme Continues

“The Ponzi scheme in the financial world continues. Month after month there is a new technique for trying to prevent the dominos from falling. We see that people are doing the logical thing, they are taking money out of the banking system.”

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

Tuesday, April 10, 2012

Silver is the Investment of this Decade and Here is Why!

Eric Sprott has become Canada's Silver Bull. And he says his conviction has nothing to do with a new fund his company is launching, the Sprott Silver Equities Class. He's a true believer. "It's the investment of the decade," he proclaims.

Why? Let us count the reasons.

1. Demand exceeds supply. Annual production is about 900 million ounces per year, including recycling. Industrial usage alone will rise to 660 million ounces by 2015. That leaves only 240 million ounces for coinage, central bank purchases, and investment. The latter category is huge; as of 2010 holdings of physical silver to back up exchange-traded funds was 577 million ounces.

2. Silver is undervalued compared to gold. The historic silver to gold ratio is 16 to one. The geological silver-gold in situ reserve ratio is 17.5 to one. The current silver-gold ratio is 51 to one. The implied price if silver reverts to its historic ratio with gold at US$1,600 an ounce is US$100 an ounce. The actual closing price on Thursday was US$31.73.

3. The silver price is artificially low. There has been speculation for some time that the price of silver has been kept deliberately low by market manipulation.

- Read the full article by Guru Focus here:

Wednesday, April 4, 2012

The Recovery Has No Clothes!

"If we are right about gold and silver as currencies, and if we are right about the continuation of central bank printing, both gold and silver will continue to appreciate in various fiat currencies over time. If there is indeed some sort of manipulation in the futures market that is designed to suppress the prices for both metals so as to detract from the mainstream investor's interest in them as alternative currencies, then both metals are likely trading at suppressed prices today. This means that there is an opportunity for investors to continue accumulating both metals at much cheaper nominal prices than they would do otherwise. While the volatility of the price fluctuations may be unsettling, they ultimately won't change the underlying fundamental direction of both metals, which is upwards."

- Article by Eric Sprott and David Baker, Read the full article here: