Eric Sprott is the CEO of Sprott Asset Management, a Canadian-based investment company. In his interviews, Sprott constantly emphasizes the prospects of silver and that in the future it will rise more than gold. He also plans to sell some of his gold to invest in physical silver. In his view, silver should trade at a 16: 1 ratio with gold (16 ounces of silver can buy 1 ounce of gold), which means silver is undervalued and should now cost $ 120 per ounce rather than $ 40.
“There is 100 times more gold available on the market in dollars than silver. Now people buy gold and silver in the same amount and if this continues, the price of silver should go up as there is a limited supply of silver. I think there are about 27 million ounces of silver worth $ 1 billion on sale at Comex. What does a billion mean today? I think about 500 organizations could buy it all. “
Sprott also expects the next banking crisis to come. In this regard, he said: “In Europe, people are beginning to fear for the stability of the banking system, whether Spain or Portugal, Italy, or France. Some people think that if you take your money from a Spanish bank and put it in a bank German or Swiss nothing will happen.But this is not the case.Today, money moves easily around the world.Recently there was a case where a representative of the Bank of New York Mellon said he has so much money that he will soon charge a fee Of course, they will not, but the fact suggests that money is being taken out of Europe. debt obligations they have to sell. But everyone wants to sell, but no one wants to buy them, so the government has to support the banks. Something similar has happened in Iceland, Ireland, England and now it happens in Spain, Portugal and Italy. “
Sprott also spoke about his impressions of the 2011 Gold Rush conference and Jim Sinclair’s performance at it: “It was a special occasion for me to meet the famous Jim Sinclair, whom I had not met before, although I often visit his website ( jsmineset.com) His gold price forecast was one of the most incredible I had to comment on at my conference.In 2000, Jim said that in 2011 the price could rise to $ 1,650 an ounce.His prediction came true and he spoke Jim Sinclair impressed everyone with his forecast of a maximum price of $ 12,500 an ounce, at which gold could plummet after $ 1,764, when the parabolic phase of the price increase could begin. But the $ 1,650 forecast that came true was incredible. “