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
In the same category

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 7:01 PM GMT
Top articles
Latest Comments
Is the gold price manipulated?
28 Julkeith951
... if one takes the dumping of an usually high tonnage of gold at an illiquid time in the gold market aka the Monday one week ago - then such 'b...
Gold Reserves and GDP: China is ...
30 JulWilliam Tan
Shakespeare was right; "The world is a stage." Unfortunately we have all the bad actors acting at once.
Iran Agreement Boosts Peace, Def...
28 Julsonora69
You have a point. The 2003 Iraq invasion is mostly now considered an ill-advised and unjustified destabilization, with regional & political consequ...
Why we should abandon the State
28 Julovertheedge
What a gigantic pile of horse excrement. Cherry pick everything that has gone wrong. Completely discount the hard fact that the author and ...
Iran Agreement Boosts Peace, Def...
26 Julkeith95
How about the US invading Afghanistan in 2001, Iraq in 2003 ... leading to the current unrest in the middle east while supporting the 'Saudi's' ......
Take Possession of IRA Metals We...
24 Julericgolub
Internal Revenue Code 4975 language suggests that whether the gold is held directly by the IRA or by an IRA LLC (which is nonetheless still subject...
Gold Miners Nearing Rebound
24 Julsonora69
Silver has already made a 50 cent down and up round trip as of 3:30. This is happening on a Friday, with the stock markets failing to make an advan...
Why Pensions Are A (Big) Black Swan
25 JulS W.1
No (pensions) are not a black swan, which is totally random unforeseen event.
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Mawson Res.(Au-Ur)MAW.TO
Restarts Drilling at the Palokas Gold Prospect in Finland
CA$ 0.16-5.88%Trend Power :
Corporate news
Goldcorp(Cu-Le-Zn)G.TO
Achieves Record Quarterly Gold Production; Updates 2015 Cost Guidance
CA$ 16.46-1.38%Trend Power :
Production
Claude Resources(Au-Cu-Ngas)CRJ.TO
Provides Date for Q2 Results and Conference Call
CA$ 0.63+5.00%Trend Power :
Corporate news
Richmond Min.(Ur-Au-Gems)RMD.V
- Exploration Update
CA$ 0.09+0.00%Trend Power :
Corporate news
Arianne Phosphate(Ur-Mo-Ti)DAN.V
Extends the Term of Warrants
CA$ 0.86+2.38%Trend Power :
Financings
Anaconda Min.(Au)ANX.TO
Reports 12.83 g/t Gold Over 4.38 Metres and 8.55 g/t Gold Over 4.97 Metres from Channel Sampl
CA$ 0.04-20.00%Trend Power :
Corporate news
Capstone Mining(Ag-Au-Cu)CS.TO
Second Quarter 2015 Financial Results
CA$ 0.90-5.26%Trend Power :
Financials
Taseko(Au-Cu-Mo)TKO.TO
and Soda Creek Indian Band Sign Participation and Cooperation Agreement
CA$ 0.65-2.99%Trend Power :
Corporate news
Tinka Resources(Ag)TK.V
commences 10,000 metre drill program at Ayawilca zinc project, announces new IP results & tar
CA$ 0.18+2.94%Trend Power :
Corporate news
Sandstorm Gold(Cu-Mo-Au)SSL.V
Files Early Warning Report
CA$ 3.13-2.19%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