8/7/2019 Sprott on Silver

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PDAC 2011 mARCh 6-9 201

silver will keep outshining gold, sprott sayshedge und boss sys dollr fows vor silver over gold

By EUAn RoChA AnD PAv JoRDAn

TORONTO, MaRCh 8

Silver is likely to keep outperorming gold

tnks to strong dollr fows, toug bot

re still good investments compred wit

copper nd oter bse metls, ccording to

Eric Sprott, te edge-und mnger nd

Cndin investment guru.

I wtc were te money goes nd te

moneys going into silver. Teres s muc

money going into silver s into gold in dollr

terms, sid Sprott in n interview wit Reuters.

Sprott, wo eds Toronto-bsed edge-

und Sprott asset Mngement, sid it is

importnt to note tt silver vilble to buy

is reltively scrce in terms o vlue, nd tt

bodes well or urter gins.

Tere is 75 times more dollrs wort o

gold to buy tn silver, but te moneys going

in one to one, sys Sprott, wile speking

on te sidelines o n investor event eld in

conjunction wit te nnul PDaC mining

convention in Toronto.

Silver stocks in COMEX wreouses re

ner teir lowest since april 2006, wen te

metl trded t $5 n ounce. Demnd or

silver coins s lso picked up, especilly

in te United Sttes, were it ws t record

levels erly tis yer.

My biggest ting is silver -- I tink silver

is going to go up lot ere. Golds rigt in

tere, but not s good s silver, sid Sprott,

ollowing presenttion to undreds o

investors in resplendent bllroom t

Torontos Royl York hotel.

Gold nd silver -- trditionlly viewed s

se store o vlue in turbulent times --

ve sored on inftion concerns, politicl

turmoil in te Middle Est nd Nort aric,

n uneven U.S. economic recovery nd teEuropen sovereign debt crisis.

Gold touced n ll-time ig o $1,444.40

on Mondy, wile silver it 31-yer ig o

$36.70 n ounce, ter rting gency Moodys

downgrded Greeces debt nd violence

fred new in Liby.

I ve little website tt sells gold nd

silver mple les, nd we sell bout our

times more silver tn gold in dollrs (terms),

sid Sprott, wo d erlier in te dy

ddressed room ull o miners nd investors

nd oters t te PDaC convention.

Te PDaC event is te worlds lrgest

gtering o people tied to te miningindustry, nd tis yers event is expected to

ttrct more tn 22,000. Te mood mong

delegtes is exubernt, tnks to record or

ner-record prices tt bot precious nd

bse metls re commnding.

BASE mETALS RiSKy

Wile bullis on precious metls, Sprott is

wry o bse metls - copper, nickel nd zinc

- s teir ortunes re too closely tied to te

te o te broder economy.

I gree wit te prices o precious metls.

Im not s muc o bull on bse metls,

sid Sprott. I still worry bout te nncil

system, its mssively over-levered nd will

still come undone.

Sprotts views on bse metls mirror tose

o noter o Cnds most infuentil money

mngers, Donld Coxe, wo expresses similr

doubts bout te strengt o te economy

due to surging ood nd uel prices.

Im not s economiclly optimistic s te

verge guy, so I dont go to bse metls, sid

Sprott, gold bug, wo s built reputtion

or bucking mrket trends.

We ve oil nd ood prices rising like crzy

... Its lmost yper-inftionry, sid Sprott,

wo dvises investors to put money in rel

tings were demnd is virtully inelstic.

Im very optimistic bout gold nd silver,

sid Sprott. and rel tings like pots,

urnium, oil, stu tt is bsolutely essentil.

(Editing by Frnk McGurty)

i agree with the

prices of precious

metals. im not as

much of a bull on

base metals...i still

worry about thefinancial system,

its massively over-

levered and will

still come undone.

an eployee works t workshop o chngning Steel nd Iron Ftory in chngzhi, Shnxi provine Jnury 15, 2009.

REUTERS/STRingER

Sprott In. chie Exeutive

Ofer Eri Sprott silesduring the nnul generl

eeting o shreholders

in Toronto my 12, 2010.

REUTERS/ miKE CASSESE