Eric Sprott makes the case for silver. “There’s nothin’ left.”

Key points:

  • GDP is not profit and the debt is still debt
  • U.S. bailout spending from 2007-2010 = 7.9 trillion (other countries have done similarly)
  • Calls period from 2000-2010 “a depression” based on home and car sales
  • Despite what they say on cNBC, gold is a currency
  • Gold up nearly 300% as valued in dollars, pounds, or euros in the past 10 years. “Stunning.”
  • How can gold be in a bubble if it represents less that 1% of portfolios world-wide?
  • Silver is Sprott’s biggest investment, calls diversification “di-worse-fication.”
  • Silver demand vastly higher than supply. “There’s nothin’ left.”

My take home message: What happens to silver price when there’s fewer and few sellers and the paper traders (JPM, HSBC) get routed?

Silver is going to move in a volatile fashion. Hang on.

I’m planning on buying the dips when I’m able.



3 responses to this post.

  1. how does one buy silver…i have only purchased company stocks


    • Posted by the rookie cynic on February 22, 2011 at 8:08 pm

      It’s easy. 1) For physical delivery: You can buy from a local coin dealer. I’ve purchased both gold and silver coins from APMEX. You just write them a check or do a wire transfer and the send the metal to you via insured mail. You pay a premium above “spot”. Right now that around $60 per ounce of gold and $3 per ounce for silver (coins that is, a little less for bars)

      2. There’s also “bullion banks” from which you can buy an allocated amount. Advantage here is that you can have it held overseas if you want.

      3. You can buy ETFs that track the price of gold and silver: ticker symbols GLD, SLV etc. Purists however, don’t like these as they’re perceived as “derivative” of the real thing. There’s a big “paper” market for gold and silver and some people (my self included) feel that these paper “certificates” are used by big banks such as JPM and HSBC to suppress gold and silver prices. ETFs like this are available at any brokerage.

      Thanks for reading!


  2. APMEX is pretty good, but I’ve gotten close to 10% ‘slicks’ in one batch of junk silver I bought from them. They also use JPM for their banking. FYI.
    Rookie, thanks for the Sprott video. I missed it back in the fall, when silver was only $22 an oz. LOL!


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