April 18, 2013

Eric Sprott; “Gold And Silver, The Greatest Sale In History”

“I’ve always imagined that gold would hit a new high by the end of this year, over $1,900, so that is what I think,” Mr. Sprott said in an interview on Tuesday.

Mr. Sprott believes the yellow metal is safer than paper money, which can be printed by governments. He backs that up with his own investments, saying a few months ago that he has about 80 per cent of his money in the precious metals sector.

“I think [gold] will end up for the year, just like in 2008 ... because in a financial crisis, you don’t want your money in a bank,” he said.

Buy Gold

He compared the current pullback to 2008, when the price of gold fell 30 per cent in eight months amid the financial crisis to $712 an ounce, only to rally to $873 by the end of the year and more than $1,900 by September 2011.

Mr. Sprott expressed his resolve for gold a day after prices nosedived nearly 10 per cent.

Mr. Sprott asked his investors to stay the course on a conference call Tuesday, and even encouraged the purchase of more physical gold and silver as global investors flee from risky assets and commodity prices tumble.

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.