Saturday, October 27, 2018

Eric Sprott: Light At The End Of The Tunnel

“The whole premise for gold going down, which is this phony premise about the strong dollar and that interest rates are going up, it’s just a narrative that covers for what’s going on in the paper market. It’s just a narrative, OK? 

The reality is that… we talked last week about India buying 100 tonnes of gold in August. I mean, that was an incredible purchase! 

And various central banks have been buyers of gold… It’s like, man, there’s not going to be enough gold around. So, I think we’re looking good.”

- Source, Eric Sprott

Monday, October 22, 2018

Who’s Kidding Who? Eric Sprott On The Weak US Dollar

“I have a view of markets, OK? It’s almost like, whatever the narrative is at the time, you know it’s likely to reverse. For example, I look at the Emerging Markets that got hammered, hammered, hammered. 

Next thing you know: Whoomp! Away they go, they turn around to the upside. It’s like this Invisible Hand comes into the market. 

So, you look at the gold market, and as you and I both know, we’re at the 50-day, and we’re thinking, ‘Oh my God, it’s going to break out of a down trend that it’s had for the last three or four months. 

It goes right to the line and bang! Right back down again. And viciously down.”

- Source, Sprott Money

Thursday, October 18, 2018

An Explosive Situation: Eric Sprott On The State Of US Politics

“Thank God there is truly a market. You know, ‘supply and demand’, and price and all that stuff. It does work for the consumer. Even though it may not work in stocks and bonds and things like that where the Fed can interject and have the Invisible Hand working. 

But when it comes to people and to budgets and their income… I just think the consumer has lots of things to be concerned about, with energy going up, interest rates going up. 

Of course, health care costs are always uncontrolled… I don’t have a lot of hope for the consumer, notwithstanding the stock market going up all the time and a certain segment of the population making hay here. But the average guy is not doing that well.”

- Source, Sprott Money

Sunday, October 14, 2018

Eric Sprott: Life Learned Lessons in Resources

Eric states that there is always the cost of production with commodity investments. If a company increases output by twenty percent, there is always that overhead cost. 

However, if the price of a commodity rises by twenty percent that could represent a doubling of profits. Therefore commodity price has a much more significant impact on profitability than merely increasing production. 

As an investor, you want to know what a company will earn so you can determine what your returns are likely to be. If you are too conservative, you may not even make the trade.

- Source, Palisade Radio

Wednesday, October 10, 2018

Prepare Now: This Is When Gold Will Begin its Climb

Eric agrees that the average gold investor likely feels rather depressed. However, behind the scenes, there is a lot of activity. Kirkland was up 150% last year, and Novo has good performance. He feels we are still in the beginnings of a bull market for several reasons. 

Real economic recovery is lacking as low-interest rates and money printing continues. The second half of 2018 should be better than the first.

- Source, Palisade Radio