In defense of Eric Sprott
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The only unfortunate thing about Eric Sprott is not in his investment advice or the positions that he holds in his fund, but the unfortunate thing for him personally is that his fund is held by the public – by people who do not truly believe in what they have put their hard earned money into – if they did believe that precious metals will ultimately come out a winner, the fund would not be forced into selling and thus decimating the value. Individual investers who truly believe in gold and gold stocks do not have to bail out at the bottom – they just need to take advantage of the bottom, know why they got in the first place – and take advantage of all the 99% who are selling!! My advice [- with the unsustainablely huge debt load supported by fiat currency on one side of the equation and precious metals on the other side – you best be on the right side of this trade!!
Leo, he is a used car salesman. A rich one I will grant you but just a used car salesman nonetheless. Don’t be misguided.
Bird: No Jim Patterson is a use car salesman and also the richest man in Canada.
Eric Sprott was great for years. A true contrarion where he made great returns with his funds. I know because I owned them and they did us well. I think he got caught up in his brand and built a huge company that makes a lot of money. Silver is just one dangerous volatile investment and I’m not sure what the hell he was thinking there. The smartest guy out the left his firm and hes making solid gains. Bob didn’t know when to get out either but now he knows when to get in?? respect though..
You’re right, Leo, the herd acts only on price, not value. It would be much harder to make money if this were not true.
No matter how low gold goes, the herd will be convinced that it will go lower still.
No matter how high gold goes, the herd will be convinced that it will go higher still
And that is why you guys are always losers because you just don’t understand when to get in and out.
Bird “Ass-umptions” Man, I always sell strength. The more strength, the more I sell. As I’ve stated before, my highest $gold sale was at 1,910. The REAL loser is the guy (you) who thinks he knows how everybody trades.
I only know from what you told us all. Search it for yourself. Lots of losers. Sorry buddy.
And you could swap it for gold: “The largest cucrnery ever printed by the United States was the $100,000 Gold Certificate, Series 1934. Printed from December, 1934 through January 9, 1935 and issued by the Treasurer of the United States to Federal Reserve Banks only against an equal amount of gold bullion held by the Treasury”.$100,000: Woodrow Wilson, equal to $1,591,521.2 in 2008 dollars.Important to know: The $100,000 Gold Certificate was used only for official transactions between Federal Reserve Banks and was not circulated among the general public.
Eric Sprott baed ok STOP OBAMA LOVERS !
al remove may last post ?
No I did not
I asked you please remove my last post ! TANK U ! i have computer problem tanks AL ?
nice
al franky aske you to remove hiss posts tank u
Thanks Mr Moriarty as always. Best to all, A
OK, so I am still in the dark. I appreciate the indignation and all but what actually happened? What is th story? I don’t get TV and don’t have enough bandwidth for video so maybe you guys who catch all the news can tell me the details. Is Eric booted? Are they selling off the fund? Is it closed down to pay off debts? ……..maybe I will check to CBC. They ought to know something.
Annnnndddd the CBC has nothing on the subject. Hmmm. Very strange. It should be a big story.
I think the story was complete BS.
You could be right Matt. The little I have read so far is pretty short on details. Guess we will wait until Monday as Al says he will be doing coverage on it. If it is true though then maybe the bell just rang on the bottom of the gold market.
are you calling a bottom, bird?
We are awfully damn close in my opinion. Another plunge to go. I still suspect we drop near 1000 so no this is not exactly what I consider a bottom but Sprott’s departure is symbolic of the end being in sight in terms of time more than the actual price per ounce. If I picked up a paper tomorrow and read that Schiff, that mouthpiece of gloom, had suddenly turned bullish on stocks and admitted heavy losses on gold then I would probably say…..yeah, this is the bottom. As it is, judging by the comments I read on some blogs, there are a lot of gold bugs lately who have repented their faith in metals and are cursing the advice they took these past long months. Some of them took massive losses on their portfolios and sold in disgust. You need that for bottoms to be in. The gold hype machine has been shattered and there is very little confidence remaining except amongst a few rare diehards who will never change their tune. You notice it on sites like this too. Go back a year or more and you will see a totally different tone in the posts people left. And a bigger variety of posters too. Those people have abandoned metals and given up reading and commenting since their losses just kept getting worse and worse as time wore on. James is interesting. He was planning on selling near 1550 but instead balked and hung on despite his good instincts while gold dropped another 350 dollars. It really makes you wonder how much punishment some people need to take before they give up and move on to something that actually makes money for a change!
Will explain tomorrow in an interview with Kenton Towes.
As I understand it, Bird, not really a big deal. Clarification tomorrow.
Thanks Al. Good to hear you are on top of it. I don’t suppose Eric grants interviews easily. Especially at a time like this. Would be fascinating to hear his thoughts directly though. Those losses on his gold fund are honestly stunning. I read it had dropped from 3 billion all the way to 350 million mostly due to redemptions and price declines. Yikes man. It takes balls to hold on like that right to the very bitter end without losing any sleep. I mean that’s an 88% drop but more to the point it tells me this is a case of very poor timing perhaps more than just bad judgement since he will probably be right in the end that gold prices had much higher to go before finally peaking.
If Eric Sprott is a used car salesman you’d best buy a used car. At the end of the day if you’re not using declines to add oz you’re missing the whole concept.
It is interesting that both GDXJ and UPS have recently hit their respective Point and Figure price objectives. However, that is all that these two companies have in common.
UPS is at an all-time high and trading at 26x book; GDXJ is at a record low and trading at .63x book. UPS yields 2.4% while GDXJ yields 9.3%. UPS is massively overbought with a monthly RSI(14) reading of 83 while GDXJ’s reading comes in at 30.
If GDXJ were trading at the same 26 times book as UPS, it would be $1,207/share right now.
Would anyone here with at least a one year investment horizon prefer to buy UPS instead of GDXJ right now?
Oops, first sentence: GDXJ is not a company.
Second sentence! 🙂
Right it is not a company.
You make some great point; however, about, GDXJ vs. UPS!
Eric Sprott and his gang (that hack Rick Rule, Embry guy) .. they are in the business and have to keep their shop running.
They are no different than King World News and their gold propaganda machine.
Enough said.
Sounds to me like SilverSheep lost money and needs someone to blame.
@lol Actually I lost money in 2011 but changed my outlook. Since then I been short on miners and trade Biotechs primarily. I’m no fool or overzealous gold bug like you ..Cut your trade and go somewhere else. Its the only way to make $$ in this market.
Now time for my Negroni drink.
Foolish sheep will always be blind to the propaganda that they were raised on and attack those who threaten their bubble.
You think biotech is going to beat the miners in ’14? Good luck with that.
I am with you Matthew, but remember I believe in diversification and sleeping well at night!
So why in God’s name are you active on this site?
His name tips that off
Can’t comment re: KWN but I can comment on Rick and John as I know them personally and you are wrong.
funny when people talk about gold and propaganda. I say that because gold has been real money for several thousand years.
the propaganda is with regard to the experiment called fiat currency — trying to convince the masses that a piece of cloth (called a ‘Federal Reserve Note’), easily fabricated in excessive numbers, actually has value.
Mr Fox speaks: All the more reason to loudly applaud Eric Sprott.
ding ding ding …… ding ding ding…. who says they don’t ring a bell at the bottom?
Oh that’s the dinner bell for my dog Joe…. here comes Joe.
Tonight I’m goin to a place called ‘Tops& Bottoms’. Very appropriate.
Enjoy
Has anyone else noicetd that There is no article that refers to “The idea that 19 billion ounces [of silver] is available is absurd,” but silver bears continue to use this number” on Morgan’s site? I went there and did a site search… No mention of what this headline refers to shows up… ???
Is it like Hooters?
Rick Rule has been the most honest gentleman about the gold market. He said long ago wait till tax loss selling is over. Bob Moriaty is the same …called the top few years ago and now 2 bottoms this year….if this one is..I CERTAINLY HOPE SO.
BACKING UP THE SEMI MONDAY…….and load all the barrels….
I agree about Rick. His bullishness rarely matches that of the usual goldbug and he has always been very critical of most juniors. Now that he’s bullish, he knows that it’s safe to share what he really thinks because few will listen near a bottom.
Rick is not a billionaire because he is stupid or dishonest.
Everyone is entitled to an opinion. An opinion based solely on emotion and short of first hand personal knowledge is pretty worthless, don’t you think?
I agree; and John Embry seems every bit as genuine.
I personally think that he is.
“Rick is not a billionaire because he is stupid or dishonest.”
Don’t get too impressed with wealth, Al. These guys are all as mortal and normal as you and I. Becoming a billionaire is not really that special either. Why not a trillionaire who flies to the moon on Wednesdays and sips tea on Mars during lent? Is that better? F***. They can still fail like everyone else. Hell, they almost always do. I will tell you something in case you do not know already. These guys are all the subject of an angry public going in to a depressionary phase and some of them will be very happy to be publicly taxed over 70 or 80% just to cut the pressure before all is said and done. In this down cycle the last damn thing you want to be is rich and famous. It will be a curse on your name and your family. The smart ones are already downplaying all wealth and getting out of Dodge. That is not my opinion. That is a fact about how these cycles always play out.
“Rick is not a billionaire because he is stupid or dishonest.”
Don’t get too impressed with wealth, Al. These guys are all as mortal and normal as you and I. Becoming a billionaire is not really that special either. Why not a trillionaire who flies to the moon on Wednesdays and sips tea on Mars during lent? Is that better? Frick. They can still fail like everyone else. Hell, they almost always do. I will tell you something in case you do not know already. These guys are all the subject of an angry public going in to a depressionary phase and some of them will be very happy to be publicly taxed over 70 or 80% just to cut the pressure before all is said and done. In this down cycle the last damn thing you want to be is rich and famous. It will be a curse on your name and your family. The smart ones are already downplaying all wealth and getting out of Dodge. That is not my opinion. That is a fact about how these cycles always play out.
Yep Matthew and the honorable BIG AL…… I think we have a bottom. MATTHEW LOVE YOUR ANALYSIS AND WORK…. See you good guys tomorrow…busy day with the SEMI…..
Special thank you to Al…….working real hard and bringing us all this valuable info….
SALUTE TO BOB M. TOO
All I can do is the best I can, Heavy!
Thanks for the positive comments Heavy!
These guys are both valued colleagues of mine and I respect them both.
Al……Rick Rule 3 years ago has been banging the table about gold shares and you have to buy them …like now….very cheap……then warned about tax loss selling …..
THIS GENUINE GENTLEMAN IS A SINCERE AS IT GETS…..
Anyway…..for people here know those are the facts.
Ok Al …im done……
Yeah…three long years. Says it all. Wheeee…buy now…buy now…buy nowwww!!!
Wanted to say I really like your vedios. Very informative and educational as I am a beginning investor. I’ve recently bought some junk silver coins, a roll of mercs. I like the idea, like you said of getting a closer pay out by having the smaller coins, good advice.
As I see it it is a choice between being a sniper or being a duck hunter when it comes to investment. The sniper investor has to be accurate and patient.
It requires that one have the cash, find the right investment and settle in for the grand pay off.
In the case of the duck hunter investor such an investor uses a shot gun approach and tries to succeed with a multitude of investments with out having enough of anything to do him any good if there is a pay off and an enhance risk of capital loss if the bulk of his portfolio goes south due to a bad economy or white collar crime. The only real beneficiaries are the brokers.
In the case of gold and silver bullion the capital is the metal in hand not the phoney market price and that is all contingent on having the metal and defending it from all enemies foriegn and domestic. There are no real free rides but it might be possible to prevent being destroyed by criminal slight of hand.
Since the world system is falling apart due to white collar and political crime the only way foreward for an investor is to have their wealth in things they can personally control and defend and that includes physical precious metals.
All paper rots or burns and electronic assets are too dependant on power ,infrastructure and trust. Gold or silver don’t require trust, printing presses or electricity to exist and they can be kept secret. What the thief doesn’t see his heart doesn’t lust after. To Eric Sprott and company make sure your personal and business assets are under your direct control and eliminate counter party risk ASAP. For all intents and purposes it is the late 5th century A.D. and the barbarians just took over quite recently and there is no law but tooth and claw..
Guard your self and what you own or risk losing it all.
To paraphrase Mark Twain, “The demise of gold (or for that matter, Eric Sprott), has been greatly exaggerated.”
Mr. Sprott will still be standing when Wall Street craters and gold will still be standing when the dollar craters.
That said, when I first heard the rumors the first thing that crossed my mind is that it was the sign of a bottom in the sector. I have often joked that the secular bear market in US stocks will truly end on the day that CNBC’s Mad Money program is cancelled.
Al — your focus on diversification is a very sensible one. That said, most people mistakenly believe that diversification is a variety of stocks or mutual fund positions or they ‘diversify’ into asset classes which are correlated and move up (or down) together.
The other issue is that we could find ourselves on the edge of a once in two-hundred+ year event, in which you have a collapse in global currency and bond markets. If that should happen, then the diversification which would typically well-serve an investor could ironically result in massive losses (as the value of bonds and cash could be destroyed) and the value of stocks and real estate would vary on a case-by-case basis.
That is why, for the first time in my 50+ years, I think it makes ample sense to have a seriously overweight position in physical metals and mining stocks. But I acknowledge that each must decide what is in their own best interest and we’ll see how it all works out.
Have a Merry Christmas everybody!
Very few pundits in the mining sector got it right at the top 2 years ago, after years of vowing that would not happen. If it soars again in a few years and truly does a parabolic ascent, you can bet the same guys willl fail to get out again comiing up with all sorts of justifications. Much like the tech bubbleheads in 2000. Fortunately as individuals we can choose to be objective, and operate accordingly. For example when the most bullish confluence of events have little or no effect, the sirens should be blaring. The pundits will at that point likely be your worst enemy, again.
Doesn’t matter how nice a guy is, or how his politics or worldview align with yours, bottom line is none of these guys substitute for personal responsibility and none of them will personally stand by with a guarantee or some sort if your portfolio gets slaughtered because you didn’t keep your losses small. Rhetoric and lack of objectivity disguised as bravado against “them” serve as no substitute for blatantly failing to produce average gain/loss records for any time frame.
Good comments Spette. I really appreciate your point of view. If I have a criticism of Sprott it is that he relentlessly talked his own book and pumped gold all the way down to the very f**king bottom. I NEVER ONCE heard him suggest selling and moving to another asset class (except platinum) while the carnage unfolded nor do I recall him being bearish on metals even once. So I DO NOT TRUST his judgement nor accept any of his advice and frankly I don’t care how smart some people claim him to be. A stock or bond or metals promoter all come in the same wrapping and sound the same after all is said and done. That is the nature of sales. Car dealers are not different and gold fund dealers are not special either. Get thee away from me Lord! This is a classic case of a stopped clock being right once per day in my opinion. Sure gold will go up. One day. So what though if you lose your shirt in the meantime? Matthew above chimes in that non-believers are sheep. Stupidist comment I read all week (sorry Matthew but that remark of yours was just food for an argument ). Fact is that going short gold was one of the most profitable trades for more than the past two years and if Sprott is such a genius he should have known it and gone with the flow. The correct course of action in such a case from a reputable and honest broker with market insights would have been to close out the fund and hand back all the investors gains to date. He DID NOT do that though which (to me) is evidence of a vested interest or a person who is utterly ignorant of market trends. If he wants to come forward now and profess a superior understanding of the workings of gold then perhaps he will also be willing to accept legal action from investors who lost thousands of dollars on the trade he promoted. He will NOT do that though. He must feign ignorance of the market based on the staggering losses in the fund and rely upon “manipulation” claims to paper over his real lack of insights. The man is just human and flawed as anybody else. He is NOT a genius as Al and Bob make out and plenty of money does NOT make him special in my books. So you people out there jumping to his defence better start thinking this through a little more clearly. If Sprott was such a genius how come he did not sell at the top? Go ahead. Ask yourself and get back to me with an answer I can swallow. How come he kept calling for a price recovery even as prices plummetted? Looks to me like he does NOT understand gold or is incompetent as a gold investor. Eighty percent fund loss is NOT the sign of achievment in the investing business. Go check that for yourselves boys. Can’t any of you get that through your skulls? The best news I heard all year was he got “booted” by the board. Far too late in my opinion. The guy has a lot of explaining to do but don’t bother waiting to hear it. He can take his losses and move on to something he understands better as far as I am concerned.
Seriously you guys. Who takes such massive losses from redemptions, falling prices and negative sentiments in an economy that is actually returning robust gains in stocks and still maintains a following of serious supporters? That must be the definition of stupidity in the gold camp. Talk me about real sheep! A successful investor who can lose as much as that guy lost from a flagship fund in his own name cannot possibly be competent or trusted in my opinion. Maybe it is his ego. Maybe he thinks he is above the banks? Who the hell really knows what drives him. I can’t divine what the guy thinks day to day but I won’t hesitate to say I think he is a terrible analyst when it comes to metals. I won’t mince words saying that I also think his followers are a little deluded. But it does not matter what I think. They can all count their profits from long gold positions for the past 26 months and answer that question for themselves. Or answer to thier wives. Idol worship can be so painful sometimes.
Hello Bird……….I have read all your rebuttals…..the only thought that I will say concerning your question concerning Sprott..(of which I enjoyed)
.
“If Sprott was such a genius how come he did not sell at the top.”?…………
ANSWER:………Maybe , it was not a top……maybe
My thoughts………there was not a “parabolic top”…..”.cycle top” yes
Remember, some of the smart investors , have longer time horizons…5 to 10 years or longer,…. It is like comparing real estate..you” invest” in real estate or you can” flip” real estate both make money, or you sell real estate and make a commission.
Thanks for sharing , appreciate your comments……….
Thanks Jerry. I appreciate the comments. Look, I actually agree with a lot of what Sprott says. He is correct in his assessment of gross indebtedness and the impossibility of escape. He makes many excellent points on the risk of sovereign default risk and derivatives. My bone to pick with him is that he could not recognize that a decline in metals had arrived nor did he take decisive or evasive action to protect those investors who bought his funds. Sprott SHOULD have closed the fund before losses became excessive. He SHOULD have returned profits to his group of investors and followers who were in many cases less sophisticated than he. He did not do that though which was totally irresponsible in my opinion. It tells me he has poor judgement or an ego problem because EVERYONE of us was watching as gold fell month after freaking month until 26 or 27 had passed with declines. How Fu*king stupid is he anyway? But Al loves the guy. I happen to disagree. Sprott is an idiot as a fund manager. I can give anyone a chance and even a second chance. Just don’t waste my time and money when it is obvious the theory is wrong and not playing out as imagined. Do we actually need to drown before we get life saving anymore? I mean….if you are up to your eyes in water and there is no hope of life anymore is it wise to keep bubbling up above the surface crying “but Gold is going up….just you wait!!!” or should you be crying “UNCLE” and telling your subscribers to get the hell out fo their own good. I am vey sorry to offend Al or the the rest of readers on this site but Sprott seems just as stupid as Schiff except maybe worse (in my opinion of course) and all the bullshit he profers about Obamacare is a pointlesss waste of his breathe. He lost a TONNE OF MONEY THAT WAS NOT HIS AND OWES A LOT OF PEOPLE A BIG FAT APOLOGY FOR HIS ARROGANCE.
Bird….thanks for the quick reply…..
I do agree , with you , concerning Sprott’s inability to “recognize that a decline in the metals had arrived”, which , might have been a conflict of interest in the fund(maybe)
I think it shows, all of us, that everyone is prone to mistakes,but, not expected from a so called expert even if he is a billionaire,, And if we are seeking their advise, well,…..I say, one must know as much as the one who’s advice you seek,,,
SEEK WISE COUNCIL ….is biblical
…NOW, if they are shown not to be wise…..”shake the dust off”…and do not look back.
btw….I agree with you…..CONCERNING OBAMACARE….I do not care what Sprott thinks about Obamacare….I can figure that one out by myself….
IT IS A JOKE………90% of the people are sick, from sugar, bad air, poor water, and GMO
and rely on the govt. to bail them out.
oh,,,I just wanted to mention one more…expert……
Donald Trump….even he went Bankrupt in real estate…..,,,now, he is in entertainment.
Yes, nice guys get things wrong, and there is no substitute for personal responsibility. My defense of Rule and friends had to do with the use of the words “hacks” and “propaganda.” When Silver Sheep used those words he was calling these men disingenuous, at best –or liars. I am convinced that he is wrong, but even if he is right, it won’t matter to my portfolio since I don’t do what I do based on their words.
Bird, nowhere did I mention “non-believers.” My comment was clear to those who know how to read. I was pointing out that sheep defend the status quo and attack those who challenge it. Sheep are reactionary, not visionary. If “something hasn’t happened so far,” they view that as evidence that it won’t happen. You, by the way, are a sheep.
Sheeple can’t comprehend the big picture.
And you are badly mistaken my friend because I could see the bloodbath in gold coming and I can also see its eventual recovery. Try to get that. The market moves in rythms. It goes up and down in cycles. I will never be stuck on one side of that losing trade no matter how much guys like you blather enduring adoration and love for a simple rock. Look Matt….it is just a way to make a buck and no more. Nothing changes in this world. The rest is noise.
It’s funny that noise personified would say “the rest is noise.” Ha ha, good stuff.
Is that a twitter, Twit?
That’s ok, at least you tried. After all, sheep aren’t known for their cleverness…
Baaaaa…..Baaaaaaaa……………Baaaaaaaaa!
Eric Sprott: 2014 sends Gold north of $2000 and Silver over $50 – Greg Hunter – Published on Dec. 22, 2013, …. Sprott says, “They know a day of reckoning is coming, and they are setting up for it…. I am convinced some sovereign banking systems fail 2014.“ the video is 21:38 length http://www.youtube.com/watch?v=JmerJjUZ0Uk&feature=youtu.be&a
Current Economic Collapse News — News Brief —- Dec. 21, 2013 – this is a (video) mosty audio news program which has some very fine news worthy items of economic ongoing collapse which Sprott would probably see coming in 2014. http://investmentwatchblog.com/current-economic-collapse-news-news-brief-dec-21-2013/ its length is 20:35, this one was alot better than most that I`ve heard lately, quite good as to hearing it again.
Are you not getting tired of this yet, Dennis? Don’t forget that investing is about MAKING MONEY!
Bird, perhaps you should be investing in getting more bandwidth, try investing in SATELLITE, then groaning about whatever will be perhaps less. But that`s up to you, isn`t. And according to you the Chinese are those most stupid, because they are up for buying up all true assets, and not those you like to have like PAPER, but I will agree butt wipes is something even Pope`s, monarch`s, royal Banksters need too.
So lets have an example to make the point easier to understand. Maybe you see a nice fat stock. Call it XYZ corp. You think to yourself its a buy and hold. The technicals say otherwise though. Looking at the charts you can clearly see it has gone through a parabolic rise. Not just XYZ but all the sister and brother companies too. It is badly overbought and even though the fundamentals say it should rise there are many talented market participants warning it is set for a big ugly fall. Not only that but almost all the major banks are giving guidance in their future estimates of price that it will in fact take a swan dive. In some cases they are extremely bearish on price. But you are a genius and so you don’t care what those other guys say. So you flip them the bird and tell them all to get stuffed because you are SO MUCH SMARTER than the crowd. With that attitude you just CAN”T go wrong. You know…because contrarians always win. Right? Problem is that most contrarians actually get their arses handed to them on platters because they are going against the trend. We don’t hear about those losers though because most of them are unknown people and we really don’t care about them anyway. They drop like flies every single day without so much as a page 60 notation. So you buy and hold in defiance of the well know analysts and banks. You hold so long you lose almost all your past gains invested in that one single trade. You also take all your die-hard followers with you in the process. They have the songbook and are true believers. So the brilliant followers who admire your moxy so much also go down with the ship. They idolize your genius and want to be thrown unarmed on the front lines of the battle where “real money” competes with the “real world” and the falsehoods embodied in our economy. Because you are right and everyone else is wrong of course. They are brilliant too. Smart, smart, smart. So you hold until you fold and then get your ass kicked from the business you founded. Now you are a real f*cking hero to be admired. They do radio shows about you. People rush to your defence. Like a regular Jesus Christ or Mahatma Ghandi. It must feel great to be a martyr. Lets all try that for a week just for fun, hunh? So anyway…..XYZ corp just keeps losing money. A lot of smarter people bet against you too. They are swimming in cash and flush from success. In some cases they are killing themselves lauging because it was such a stupidly easy trade even children could figure it out. Kind of like how Homo Sapiens kicked the arses of the Neanderthals except its a lot better because it all happens so bloody fast. No waiting 50,000 years for a conclusion when you get the other guys cave in just months in a zero sum game. And so you go down in the history books as the last famous man standing against the establishment. But you are never wrong. XYZ is coming back!!! It is going to the moooooooonn. All f@cking stopped clocks come back to midnight eventually……..one day you will be right. Your followers meanwhile are out lashing themselves with a cat-o-nine tails and beating their breasts. Broke, angry and forlorn . But they have their memories! Ain’t that what investing is all about after all? It’s the sweet memories that keep us all warm when the money runs out and after those bloody Homo’s kicked us out of the caves in our homeland. Long live the contrarians!!!!
Bird, I have to agree with your statements, thanks for sharing,. I remember when I called big Al on his purchase of sprotts fund back when the premiums were double digit, lucky he diversified his way out of that position as even without the premium the cost was way more than today’s price, in those days he would disclose his holdings.
Thanks Bobby. Lets just remember to always think for ourselves and not put too much stock in the ideas and agendas of other people. That includes Al and Cory and the others who are unrelentingly smitten with metals even during an unrelenting downtrend. That is their business though. Never ever forget that. Look at who pays for this site (and others) for confirmation of what the agenda is all about. This is just business to them. Just try to keep a clear head as you read the viewpoints and articles posted. The web is swimming in opinion and advice that often goes completely against our own best interests. Sprott has been the worst of losers and I have no respect for the man at all. I had written many months back I would know golds decine was finally ending when he and Schiff and Paulson had lost their shirts on the trade. I got my wish in spades. I have to tell you I really hate the loyalty that some people on this blog show for guys who have lost such stunning amounts of money without ever questioning why they have an allegiance in the first place. Matthew is a prime example of a sheep if I ever knew one. He waves the GD gold flag like a bloody moron on drugs and if you go back and read his trades you will see just how badly he has lost. No matter. He comes back day after day and tries to blow sunshine up everyones ass like some golden expert but he knows pretty much squat except how to lose money on metals as I see it. Not our problem though. Keep your own eye on the ball and read the charts for yourself. NEVER be swayed by the opinions of people who have a financial interest in the outcome of a trade. That includes the nice folks who run this sie, Schiff, Paulson and today……Eric Sprott. God bless him but his eviction from the top office is long overdue.
PS…..apologies to Al and Cory but you guys are not being balanced at all anymore. Stop with the rah rah and bad politics and conspiracy nonsense please and get some perspective.
And Merry Christmas.
Bird you are so right! These guys are blinded and cannot see what is really Going on with the economy and dollar. I also think Canadians should mind their own beeswax.
Got that Bird? Mind your own business!
You idiot. I am descended directly from the founding fathers of America. They had a hand in crafting the Declaration of Independence and participated in the American revvolution. I am more American than you I will bet.
Tell Bobby, not me. I couldn’t care less who comments about anything. You’re still Canadian, btw.
But you do care. That is why it is so interesting.
Bobby, what’s your point about double-digit premiums? Are suggesting that their appearance somehow discredits Sprott?
Bird “Chicken-is-Money” Man, I have booked trading gains of 50 to 200% on several juniors that were into weakness this year. And yes, many core positions are underwater. The has been true at other major bottoms like 2008-09 and it didn’t matter one bit after several 10+ baggers. For about 90% of the time, down OR up, the price of these illiquid juniors is proof of nothing except which way sheeple psychology is blowing.
This “prime example of a sheep” retired at 28.
You also booked serious losses according to what you claim to have bought. Don’t brag after the fact because none of us believes you.
Oh really? What losses are those? Sorry, the above is fact, not bragging. Note that I mentioned my many core positions that are underwater??? Such is life for the speculator in junior miners. You can’t jump in and out with your entire position when speculating in such illiquid stocks. It’s not for scared, angry, sheep.
Nope. You can’t jump in and out. Baaaaa…..Baaaaaaaaa…..Baaaaaaaa!
This was uploaded last night. Greg refers to “Christmas week” so I presume it was recorded over the weekend. No mention made of Sprott rumours making the rounds, and he – Sprott – is not backing off in his bullish opinions.
Eric Sprott: 2014 Sends Gold North of $2,000 and Silver Over $50
http://www.youtube.com/watch?v=JmerJjUZ0Uk
Then the bottom is not in until he relents.
Agree.
He is not going to “relent”, nor should he. You made a comment in one of your posts above about losing your shirt, that I wanted to comment on:
there is an important distinction between holding physical metals and mining stocks and whether you do so on margin.
One does not “lose their shirt” by holding physical metals. Yes, there has been a draw down in dollar terms. That’s fine — dollar average the position to the extent one can. Continue to accumulate as one can.
The dollar has to collapse a total of “one” time, for this trade to work PERMANENTLTY. There are many of us who are not trading physical gold and silver. There is no shirt to lose.
Now with regard to mining stocks — yes, they are more volatile than many stock sectors and the volatility cuts both ways. I don’t recommend the use of margin and I tend to be a contrarian with regard to sector investing in the market.
Thus, I recommend accumulation of positions in the mining sector while they are in the midst of a bear market (not by drawing a line in the sand and going ‘all in’, Texas Hold ’em style), but by scaling in.
Am I down on those positions currently? Yes. But given that I own them in cash accounts and not on margin — I’ve got the time and inclination to ride it out.
People who understand the risks involved in the dollar regime, Like Mr. Sprott and Mr. Schiff are not going to capitulate. They are going to be there when the re-set button is hit.
Yeah, no shirt to lose. I bought DUST and you held stock that declined 50%.
so what’s the point? that you’ve never held a position, on a long-term basis, that first went against you? if so, lucky you.
guys like you crawl out of the woodwork during bear markets in the metals. on the next bull move, if my stock positions are up 5x or 10x, then what? Am I supposed to care that you made a trading profit on DUST. If you want to compare P & Ls at the end of the trades, have at it.
Sprott Phys Plat & Pall (SPPP) is trading at 2.5% discount.
I’ll likely buy more next month.
http://sprottphysicalbullion.com/sprott-physical-platinum-and-palladium-trust/net-asset-value/
Affordable care. Fact, just paid my premium for florida blue (blue cross) I have a better plan at 50% the price. Billionairs do not need health insurance, so why comment on something they know nothing about.
He is not American anyway. Just distraction and blowing hot air and smoke. An old man. It misses the whole bloody point. He cannot answer why he saw his fund tank more than 80% on his watch. He is not talking about what current and past investors want to hear about which is why he lost so much money…..just blathering about the future fears and debt and shit we already know too well. I do not care to listen to this idiot anymore.
Do any of you?
He does look aged for sure,,,,frankly, I’m tired of all the pumpers blowing it out of their butts
Yeah, certainly do.
Off Topic:
Bitcoin bugs sure a quiet – is there a BC forum where I can go yank some chains?
-and if there is .. will they flush? ha!
http://bitcoinity.org/markets
Max Keiser will fit the bill Irwin.
I wasn’t aware that Sprott Funds has this trouble. But I was sure that they also made some losses as everybody made. What I don’t understand why everybody is calling for a bottom now. Maybe Korry and Bob or even Rick Rule can give some evidence why we are at the bottom.
My question to these smart guys: “Why this should be the bottom if conventional markets are going from one all time high to the next? In my opinion, Gold Stocks will see the bottom when the conventional market crashes and takes the Gold Stocks down with it”.
Al, would be great to get some feedback from all the ones (Korry, Bob, Rick Rule,..) who call for the bottom now.
None of these above mentioned experts know anything, most of the time they are talking from their rear. I will tell you this..
Bottom will be when
1) big hedge fund money starts pouring in to the mining sector
2) conventional market doesn’t need to go to crapper, look for the money flow and volumes for stocks trading under 5 dollar.
Good idea. And invite Sprott too. Ask him a few really tough questions for a change instead of delivering the usual cover job for a rich guy who is pretty deep in debt to those who followed all his pied piping. How about treating him just like everyone else for a change instead of giving him the kid gloves and baby bottom treatment? I say put his feet in the coals and turn up the temperature to high.
When you have a better understanding of Human Nature you will understand WHY this is the bottom, or close to it.
We have a near consensus among gold experts that gold is going to $1,000 (or lower). Among them are Rogers, Armstrong, Radomski, Roy-Byrne, Rambus, Ackerman, Savage, Bevan —that’s just off the top of my head. With so many lemming followers sidelined in anticipation of this price target, what are the odds that gold actually gets there?
I’ll stick with my $1,155-$1,125 worst case scenario.
Gold rallied off the 1050 area area (an intermediate long term bottom) in the Fall of 2010 to an all time high. It rallied off the 700 area in the Spring 09 to that same all time high, thus completing either the second or last phase of this bull run for gold. Looking back on a 5 year chart, the last top was the blow off or phase III. But use a 10+ year chart an the top looks like the peak of the phase II run.
So, therein lies the debate over tops, bottoms, beginnings and endings; and that’s where I think some of the folks out here are getting the numbers for their predictions.
I like it best when I read debates over the numbers rather than about the quality of character of the messengers. In every market there are buyers and sellers. They can’t all be right all the time.
There is little chance that we have seen THE high for gold. I think 1900 will be challenged no later than Q2, 2015.
Oh! Big surprise. Matthew finally offers his idea on the low in gold after having been asked to put it up it so many times in the past. So what is it Matty boy? 1125 or 1155? Are you willing to bet a bottle of good wine on that?
I’ve given those targets two other times ding-dong.
You still got that old pillow?
Eric Sprott will never capitulate on gold & silver. He will go to his grave sticking to his guns so don’t know why people say he will change his mind. not gonna happen.
If the USA no longer owns any gold worth speaking of and the BRIC countries say a currency has to be backed by gold, then what happens to the U.S. and the US dollar? All the Ivy School people that run our Gov’t and Fed know this, so what diabolical plan do they have? Are they going to tell China/Russia that gold is meaningless and tell them to stick their gold up their ass – we ain’t playing your gold backed currency BS? China/Russia know they risk all out NUCLEAR war by the U.S. and they know the U.S. will use them again. So the point is the U.S. is not going down and they will take China/Russia down in every possible way – war/financial/economic. All these countries risk losing everything and there will be no winners, just all losers. So all this talk about China ruling the world, China making all the rules because they have the most gold is all BS. The U.S. will never let China/Russia run the world finacilal/economic system or the petro currency. Or else it’s WW III like I said. The U.S. is not like England of the past. The folks that run the U.S. will destroy the world before they ever lose control as the top banana. Just reality.
Rome thought it could “destroy the world” to save itself, too. Notice how that ended.
Different time, different era. Nuclear bombs can destroy the world.
That is what makes all references to the past obsolete.
Hi, Fred — agree on the Sprott comment. The capitulation, in my NOT very humble opinion, is going to come from the non-believers.
When the first currency goes down (in my opinion, the Japanese Yen), there is going to be a flash recognition point among the masses that gold and silver must be owned. Average people who wouldn’t dream of buying silver at $20 an ounce are going to buy it at $100 or $200 an ounce.
Eric, I agree with each of your posts here —as usual.
thanks, Matthew — likewise.
I’ve been through this many times before — the hubris among the gold bears is running high (and very similar to what a contrarian had to deal with when talking to the tech crowd in ’99 or the real estate flippers in ’05).
If you know what you own and you’re not on margin, you can afford to wait it out. When the move comes, it’s going to be amazing.
Hi Eric,
Interesting viewpoint that the Japanese Yen will be the first flash point of Fiat failure. IYO, what will cause this and when will this happen-best guess?
Hi, Fred
From my perspective, we have followed the Japanese playbook for some time. Along the way, there were many times in which the Japanese thought the recovery was afoot — only to turn back to QE (As you may know, the Nikkei stock average had several large rallies over the past 20 years, only to cave in again and again). So for me, very similar to what is taking place here.
The irony — that when this was first happening in the US, I can recall pundits saying, “Can’t happen here as we will take the bad medicine right away. The mistake the Japanese made was not allowing the bad loans to be flushed from the system — they kept bailing them out rather than letting the failures to take place.” And then we did the exact same thing.
With their latest move, I think they have finally entered the terminal, ‘bet the currency’ phase of QE.
Their debt is so large relative to their GDP and with the demographics solidly against them, I would not be surprised if in the next couple of years an interest rate shock sends them over the falls.
My thinking is that the typical investor in the West can not get their head around the idea of a currency implosion because they associate it with the third world. But when it happens to an industrialized nation, it is going to be painfully obvious that Japanese citizens with money in the bank or in government bonds were destroyed and those with precious metals retained wealth.
At that point, the light bulb moment will finally take place. You will then see a mass exodus out of the dollar and into hard assets.
Remember Rule #1.The markets can stay irrational longer than you can stay liquid.
Stop with this nonsense about calling a bottom!
Didnt BM say a few weeks ago his friend called him up in panic and sold all his gold positions. didnt he proclaim that was the classic bottom?
Its all BS and we have many snake oil salesmen who still prey on unsuspecting public
gold could have a very very long way to go down
You have got me mixed up with someone else James. No friend called me in a panic to sell all his gold postions. I never called the bottom yet either. I have told you many times my expectation is for a plunge below 1000 dollars to a short term low of 968. That is where gold will finally blow off and shake the nuts out of the trees. Keep your hat on and wait if you like since you have lost your opporunity to get out high you must now wait for it to rise again one day in the future.
If we see 968, then we will also see 961.85. You’ll see. 😉
Dead wrong as usual. But still funny.
Gold has not made a new low. Silver is even further from a new low. Most of my juniors are well above their lows. Lows are AREAS on the price chart. Moriarty is not wrong yet.
He has been wrong many times. He will be wrong this time too.
One must remember………..invest “when there is blood in the street”…Rothchild 1800
or” Never catch a falling knife”……….Chef Ramsey
“In Defense Of Eric Sprott”
That was the title of this thread. Still waiting for the defense to show up. So where are they? No takers apparently. Not on this site. No advocates except for Rick Rule on the next days thread. Its a wash. Sprott has no friends on this forum judging by the dearth of support and comments. Big surprise.
Not from Al.
Not from Cory.
Not from any of the regular guests.
Why is that?
Only Rick Rule. Hmmmmm.
For anyone who does not know…..silence is a verdict.
I defended him.
But it misses the big point, of course. he doesn’t need to be defended. You think he really cares what you think? If the gold market never came back, he’d die with more money than you’ll ever see. I think he’s done proving himself.
I have in my possession 40 ounces of gold bought at the unheard of price of $365.00 a ounce. and also a 100 trillion dollar paper note issued by the reserve bank of zimbabwe,which i tried to surrender to the U. S. government to help take care of the 200+ trillion debt of our country. I cant figure out why they refused the one hundred trillion dollar piece of paper can any of you clue me in? I probably need to sell my gold and take my lumps and turn the gold into colorfull pieces of paper to show everyone just how completely stupid these idiots are for telling us to buy the physical metals Shame shame on these consumate fools.
Make sure you get some other new plastic currency, it will last until its worthless, by the way the dollar killed gold and silver this year
We get our first plastic £5 note in the new year Bobby!
Best manager I know of. I mentioned this a few weeks back.
I talked to him 3 weeks ago and hes still bearish on Gold and went so in 2011.
http://www.theglobeandmail.com/globe-investor/funds-and-etfs/funds/former-star-sprott-manager-to-run-new-hedge-fund/article4096340/
Hes making money.
http://stockcharts.com/h-sc/ui?s=JFS/UN.TO&p=D&yr=1&mn=0&dy=0&id=p49256373715&a=325726618&listNum=1
Do you not have to look at this purely from a professional money managers perspective and ask yourself how well he managed his clients money? It’s a moot point he is the firm’s biggest client and he lost money as well. What’s important, and this is the only thing that counts, is that he’s down an astounding 88%. An unbelievably poor performance, sure he made money when everybody was making money – but when the time came to preserve his and more important his clients wealth he failed miserably. That’s the truth, that’s the bottom line.
Late getting back. nopoo who are you talking about? JF NEVER had a losing year. His fund is up 12 out of 14 months.
Sprott yes JF no. Sprotts and idiot no matter what people say. My $100k is $29k now. Its was only 100k but man that’s retarded.
Which fund did you put that $100k into?
I lost a s***load too with Sprott. Has anyone sued him yet for his negligence?
There are a handful of people in the investment space whose judgment I trust and Eric Sprott is among them. I agree with the opinion that we are at or darn close to a bottom in gold and silver, and that Eric is taking heat because he’s behaving rationally. When Sprott talks, I listen.
Well I just woke up. Reading the posts this morning. I think I owe everyone here a big aoplogy. That includes Eric, Cory, Matthew and Al. You know, being booze free is a great thing but every once in awhile there is a slip up and yesterday I was pickled to the gills even though I am sworn off the stuff. Cory, would you kindly remove any post that I left yesterday that is offensive or cursive or insane sounding and accept my apologies for my rude behavior. I think that would include pretty much all of them. Have a Merry Christmas.
This all sounds good guys, no one ever thought precious metals would enter a 20 year bear market a couple of decades ago either. Too many of the same guys are convinced a repeat cannot ever happen, and too many of them are calling for a bottom. That does not bode well.
Good point Spette. Everyone IS calling the bottom. Something else will happen.
The “discussions” on this site have devolved to an uncivil, shouting match led by some cock sure argumentative cretins who deserve to be ostracized until they regain their manners, if they ever had any.
+1 Redpoll
Your criticism is noted, Redpoll and I agree with you. I don’t know if I can make amends however I offer my apologies if you were offended and perhaps Cory will remove some of the uncivil posts on this thread.
So glad to be NOT American.
Poor Canadians, they are still commenting the swindler Eric Sprott.
… many have not passed the phase of denial yet. Out there there is an ocean of opportunities , many asset classes, and you discuss about, as someone used an euphemism “used car salesman”
eric sprott is angry ! http://www.youtube.com/watch?v=-0I053iZPZg !!!!!!!!