Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Worried About Silver? Listen to Eric Sprott's Stump Speech

IMG Auteur
Published : October 22nd, 2011
420 words - Reading time : 1 - 1 minutes
( 8 votes, 4.5/5 ) , 1 commentary
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
1
comment
Our Newsletter...

 

 

 

 

Hedge fund manager Eric Sprott's speech at this week's Silver Summit turned a room full of nervous precious metals owners into pumped-up silver buyers. Some of the highlights are posted below, and here's a link to a recent Financial Sense interview where he makes many of the same points.


  • The US Mint sells about the same dollar amount of gold and silver coins, which means it sells 50 ounces of silver for every ounce of gold. It's more or less the same story at GoldMoney and Sprott Money.


  • Ten times more silver than gold is produced each year, and the ratio in the earth's crust is 15:1, so how can the price be 50:1? Expect a return to the historical norm of 15:1, which implies that silver will outperform gold.


  • The supply/demand picture has seen a 380 million ounce per year positive swing -- in a 900 million ounce market. Where is the silver coming from?


  • The paper silver markets trade a billion ounces a day and the world only produces 900 million in a year. The amount available for settlement of these futures contracts is something like 1.5 million ounces, ludicrously little compared to the amount of paper.


  • "On the physical side I'm seeing only buyers."


  • "There are a lot more people who can afford a one-ounce silver coin than an ounce of gold."


  • Gold will be a reserve currency and silver will also play a role.


  • "We tried to buy 15 million ounces of silver and had to wait three months -- and some of the silver we got was manufactured after we ordered. So there's not a lot of silver sitting on shelves waiting for people to buy it."


  • "Somewhere along the line some manufacturer will say 'I can't get the silver I want' and the jig's up."


  • People will prefer gold and silver to having money in a bank where there's tremendous counterparty risk. Three months ago Dexia was considered to be the best capitalized European bank and now they've been nationalized.


  • "You go to some of the biggest names who own gold and ask them about silver and a lot of them haven't even looked at it."


  • Central banks are selling gold surreptitiously.


  • "It's shocking how undervalued the junior miners are...Gold and silver stocks are growth stocks. They all have a plan to increase production dramatically. Small miners can start a new mine and double in size...The relative value of gold stocks will become apparent with time...The breakout, when it comes, will be very sudden."

 


Companies Mentionned : Metals X |
<< Previous article
Rate :Average :4.5 (8 votes)
>> Next article
John Rubino is the author of The Coming Collapse of the Dollar (co-written with James Turk), How to Profit From the Coming Real Estate Bust (Rodale, 2003), and Main Street, Not Wall Street (William Morrow, 1998). A former Wall Street financial analyst and columnist with theStreet.com, he currently writes for Fidelity Magazine and CFA Magazine He lives in Moscow, Idaho
Latest comment posted for this article
Apparently the Silver market is at its most bullish for many years. Since the recent sell-off Ag has traded sideways for almost 20 days. I suggest wait to see direction...a close outside that band...and go with it, either way. What is to stop further sh  Read more
S W. - 10/24/2011 at 8:01 PM GMT
Top articles
Latest Comments
Here's What Will Send Oil Prices...
01:42overtheedge
"Admittedly there has been a production surplus since the beginning of 2014 but that is nothing new and is forecast to be back in balance by the en...
Another Clinton Scandal
01:27overtheedge
O, Mr Hoye you must have really infuriated the Clintonistas. Before I voted, you only had 1 vote that was a one star. I tend to think ...
Apple's iWatch and Some Crazy Go...
00:47overtheedge
Oooo, let me think about this. I have forward guidance about gold-bearing Timex® equivalents that are supposedly gonna be made by Apple/Foxconn...
Financial Repression Authority w...
03 Marovertheedge
"The US is only about 50% of global market cap but most US investors have a 'hometown bias" of having 70% of their portfolio in US securities. Fabe...
Bondholders “Bailed In” In Austr...
03 Marovertheedge
"“Bail-in is now the rule” as Irish finance Minister Michael Noonan warned in June 2013. Noonan admitted that the move to not maintain deposits as ...
Bondholders “Bailed In” In Austr...
03 MarArgus
Shortly after the Cyprus test run, Canada's budget document made provision for bail-ins in the event of significant 'systemic risk' to the banking ...
Illinois Pension Plans 39% Funde...
02 Marovertheedge
And it gets even worse. The unfunded pension liability monies aren't invested and never will be. You can't pay pensions out of an unfunded ...
China is about to overthrow Lond...
28 Febneville
This a good slap in the face for the downright crooked bullion banks,traders that have been front running ie algorythm trading etc It had to ta...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Sprott Resources(Ag-Au-Co)SCP.TO
Resource Corp. Announces 2014 Annual Results
CA$ 1.25-5.30%Trend Power :
Corporate news
Vista Gold(Cu-Le-Zn)VGZ.TO
. Announces 2014 Results and Provides Update on Recent Activities
CA$ 0.42-2.33%Trend Power :
Corporate news
Major DrillingMDI.TO
Announces Third Quarter Results and Declares Dividend
CA$ 6.44+0.63%Trend Power :
Corporate news
UR-Energy(Ur)URE.TO
Releases 2014 Year End Results
CA$ 1.15+0.00%Trend Power :
Financials
Rockwell(Cu-Gems-Ni)RDI.TO
Announces Filing of Preliminary Short Form Prospectus
CA$ 0.26-1.89%Trend Power :
Corporate news
Cardero Res.(Ag-Au-Cu)CDU.TO
Announces Proposed Reverse Takeover of Artha Resources
CA$ 0.04+0.00%Trend Power :
Corporate news
Goldcorp(Cu-Le-Zn)G.TO
declares third monthly dividend payment for 2015
CA$ 25.45-2.42%Trend Power :
Corporate news
Integra Gold(Gems-Ag-Au)ICG.V
Files PEA Technical Report on SEDAR
CA$ 0.29-7.94%Trend Power :
Corporate news
Fjordland Expl.(Ag-Au-Co)FEX.V
Geophysical Survey Outlines Strong Conductors on South Voisey's Bay Nickel Project
CA$ 0.02-16.67%Trend Power :
Corporate news
Clifton StarCFO.V
Announces Private Placements and Settlement of its Osisko Litigation Raising $11 million
CA$ 0.18+0.00%Trend Power :
Corporate news
Comments closed
  All Favorites Best Rated  
Apparently the Silver market is at its most bullish for many years.
Since the recent sell-off Ag has traded sideways for almost 20 days.
I suggest wait to see direction...a close outside that band...and go with it, either way.

What is to stop further short selling by the top four?

SW
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.