March 29, 2012

New Highs Coming for Gold

Even though some people including Chariman Ben Bernanke are bashing gold saying that it is old, not money and is a worthless standard that should not be considered, Eric Sprott of Sprott Asset Management doesn’t agree. He states that those investors who have studied history and what is going on the world economy, these who understand what money printing of out thin air means are aware of the merits of gold.

Buy Gold

Eric believes that the merits of gold are getting better day by day but the mainstream is trying to downplay it. The majority of forecasters still do not believe in gold to be an appropriate investment. Still Mr. Sprott knows that these who owned gold and silver for the last 12 years know they are right. He points out that even though gold and silver are hugely manipulated and the price prices of gold and silver are negatively affected, before the yearend both precious metals will reach new highs. Right after gold and silver reach new highs, the mining stocks which have been lagging the prices of precious metals lately will also follow and will rise significantly. Only when the precious metals start rising and continue their uptrend with no vacillation, precious metal stocks will follow.

Eric Sprott is a Canadian hedge fund manager and founder of Sprott Asset Management. He became a billionaire on paper with the initial public offering of Sprott Inc., the parent of his Sprott Asset Management firm.