Rick Rule:  Eric Sprottis as aggressive as I have seen him since the year 2000…he is as is his style, the style that has made him a billionaire, very aggressively going into the marginal junior producers…companies that barely make money at $1400, but would be making $800 or $900 an ounce if the gold price went higher….
Eric believes that gold within 12 months will certainly be above $2000…[and] that this is the year where his portfolio will see ten to fifteen–10 to 20 baggers.

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From Tekoa da Silva, Bull Market Thinking:

In reflecting on the past month—it’s been quiet in the metals and mining space from a sector-wide pricing standpoint. Most mining shares are treading water, or remain trapped in decline while the metals continue sideways.

What’s fascinating to note is the emergence of extreme opposing opinions on which direction gold is heading next. Jim Rogers suggests the possibility of $1000 oz., and regular interview guest, technical gold trader Gary Savage expects the same.

In weekend commentary Gary suggests the short-term possibility of $1200 oz. gold, followed by a retest of $1000 oz.–to be created by manipulative hedge fund managers driving the price down in order to enter large positions ahead of the bubble-phase.

Rick Rule recently noted the possibility of an October black swan event, but in contrast to Jim and Gary, he indicates that in terms of mining shares, “The damage [to] the juniors has been extensive enough that I am personally of the view that the very best [companies] are cheap enough.”

Regarding his boss, Rick said, Eric Sprott…is as aggressive as I have seen him since the year 2000…he is as is his style, the style that has made him a billionaire, very aggressively going into the marginal junior producers…companies that barely make money at $1400, but would be making $800 or $900 an ounce if the gold price went higher.”

Rick further added that, “Eric believes that gold within 12 months will certainly be above $2000…[and] that this is the year where his portfolio will see ten to fifteen–10 to 20 baggers.”

While the viewpoint of gold’s direction over the next 3-12 mos. remains conflicted, one thing is for certain: the long-term fundamentals are becoming stronger, and physical supplies of gold are disappearing.

It is therefore in your editor’s opinion, that dollar-cost averaging programs be considered, as they will succeed no matter where the price of gold goes over the next 3-12 mos. Through disciplined accumulation, any downside price shocks will simply offer more opportunity to reduce cost basis. For more commentary on this issue please read this article.

Furthermore, while Eric Sprott may be accumulating gold producers which barely make money at $1400oz, your editor (much like Rick Rule) is on the more conservative side, and suggests companies that will continue to be economic or will “break-even” if gold goes to $1000oz or even a bit lower.

A handful of those companies are contained in what I’ve called the Da Silva “Legendary Mine Builders” Index, and as a special thank you for supporting my work, I’d like to offer you that list for $50-OFF the regular price.

The junior gold mining companies contained in that list have substantial cash reserves, no debt, high-grade deposits, and are led by the industry’s top wealth builders.

To get a copy of that report at $50-OFF, simply click HERE.

As a final note–it is clear the market is waiting for a catalyst. Regardless of what it ends up being, by continuing to accumulate financial insurance (gold) and the best of the best companies that can weather any storm, it is your editor’s opinion that we will come out ahead no matter what happens in the short term.

That’s all for now. Best in health, wealth, and happiness in the new week & month ahead!

Thanks,
Tekoa Da Silva
Bull Market Thinking

2013 Gold Eagles As Low As $51.49 Over Spot at SDBullion!

Gold Eagle 2

  1. Sprott is doubling down, since a big chuck of his investments are down -80 to -95% in the resource sector, he is selling silver to buy more.
    Brazil ex-billionaire Eika Batista has lost it all, was worth over $30 billion, now he is under $1 billion, and maybe going to be $0.  He is getting sued for what is left, and his companies are going bankrupt.
    I hope Sprott takes notice, another 1-2 years without gold going to $2000, he might be in the same position.

  2. As more countries lose faith in the dollar and the facts are it is growing strongly, the next step is the foreign sell off of the Treasuries will doom the dollar and The Fed cannot possibly keep up with purchasing the debt to offset the Treasury sales. It’s just that simple. China, Russia and Japan could sell off U S Treasuries in a heartbeat. The Dollar is history even as I post this.

    • “China, .. and Japan could sell off US Treasuries in a heartbeat”    Yet, they haven’t. They have watched QE for 5 years, yet they hold it, this is called cooperation.
      What is the alternative to the dollar?   Buy more Euros?  No. Yen? No.  Pounds? No.   The dollar is here to stay, it will get devalued one day, it won’t purchase as much, but it will still be here.
      So far, we have very little evidence that foreigners are selling US bonds, we had the month of June that showed $40 bilion in total, that’s not much.

    • Zman take your obama paid shilling elsewhere. You do not have a clue. China has sent the US a threat over the $1.3 billion in US assets it holds.

  3. I have lost confidence in Sprott’s calls.  He has been wrong for a good while.  Another one is Eric Von Greyers.  He is now calling for 70 dollar silver in 2014.  These guys do not have a crystal ball.  There is no way anyone can know where metals prices are going to be next year.  The goal of the manipulators seems to be to force metals to trade sideways in defense of the dollar. They may even decide to force the price lower.  Its a crap shoot to try and forecast future metals prices.    

  4. Steven Leeb is now calling for 110 dollar silver in the next 24 months.  Dr Leeb has been wrong with his calls for the last several years.  The theory being that if you keep predicting the same outcome, eventually it will come true.  I would be happy to see 25 dollar silver, let alone 110 dollar silver.  When will we see 25 dollar silver Dr Leeb?

  5. If the government was to nationalize the mining sector, what would be first on the agenda?  Make the shares worth as little as possible.  If demand does not drive the price of gold and silver up, and if the falling value of the dollar with the flood of money into every other aspect of Wall Street, shouldnt the gold and silver miners be following suit?  TPTB have one thing on their mind… greed greed greed.  They have the miners right where they want them, just like the prices of gold and silver presently. 
     
    Right now, I would rather own one ounce of silver worth $20,  which at the worse, in my opinion only, could reach $17 and change, or an ounce of gold which could reach $1100 in the near future.  I can see my $20 investment or my $1100 investment reaching to $100 and $5500 long before my $5 and $20 stocks ever go back up, let alone reach $25 or $100 per share. 
     
    If there was a 0% chance of nationalization, I would say there would be a 0% chance of making a wrong move by buying miners at these prices.  But right now, I see nationalization leaning well past 50/50 and even more so each day I see the manipulation become more and more blatant and more and more desperate while the prices continue to be widdled down. 
     
    The word “desensitized” has become obsolete in todays society.  The new word would have to be something from the book 1984.  We are one black swan from total chaos. 

  6. I have a lot of respect for Eric Sprott. I view him as one of the most knowledgeable people in the precious metals arena and he is a very savvy and successful business man. With that being said, he should stop with these price calls. Him and David “I don’t ever see silver under $30 again” Morgan and others are risking their credibility by continuing to do this. I believe gold and silver will be a lot higher within the next three to five years but I have no idea what price they will be. I choose to dollar-cost-average until my stack reaches a comfortable level. I think that’s the best we all can do. 

  7. If calling the pm’s pricing soothsayers on the carpet for some of the worst price calling advice(and I do consider stacking as an investment) I have listened to in my 56 years, then count me IN as one of the trolls. Had those guys come clean and simply said on record that they were terribly wrong with the timing of their advice,most of us trolls would have given them a pass and chalked it up to experience. I still don’t understand these guys that are offended by opposing points of view. Most of us that are posting here are stackers and WE ALL WANT THE SAME RESULTS(higher pm prices). Regards.

    • All of the soothsayers are salesmen.  They cannot give a negative opinion.  You will never hear Eric Sprott giving a negative opinion on gold or silver and this goes for Von Greyers or Leeb or Morgan or any of the rest of them.  You will also never hear an admission that they are incorrect.  This is fact.  This insults me as a stacker.

    • “Most of us that are posting here are stackers and WE ALL WANT THE SAME RESULTS(higher pm prices).”
       
      Those of us who are still accumulating PMs are VERY happy to have these low prices at which to stack.  Yes, $50 an oz. silver and $2000 an oz. gold would vindicate our decision to buy PMs but it would knock the poo out of our buying ability.
       

  8. Don’t forget Ron Rosen.  He gets the chance every now and then to shout from the roof tops that the stock market will crash down 65% and also Gold and silver will go parabolic to the moon within the next 6 to 8 months.  He has 60 years of experience and he never backs up any of his predictions with rhyme nor reason.  He has been singing the same song for the last several years without fail.  I am still bullish on silver, but I am also a realist so these type of predictions must be taken with a grain of salt and forgotten about quickly.

    • “He has 60 years of experience and he never backs up any of his predictions with rhyme nor reason.”
       
      Maybe that’s a sign of senility?
       

  9. What we got going on now is beyond our paygrade actually.  For the moment this crap is political.  There is a reason the Repubs are standing their ground.  They will lose.  Obama knows this and is trying to act cool, with his own grandstanding.  This is shameful in fact but it will teach everyone a lesson.  The politicians aren’t running this show.  The President runs this show.  We had a little saying in the Army.  Who is fXKIng this goat?  It aint the senators or the congressman.  Believe me, Obama knows who is doing the FXking.  Everything is already in place.  Congress is impotent and will back down.  Shameful yes, but we need to accept fact.  The Repubs are trying desperately to make us believe they are relevant.  They are not.

  10. People are misunderstanding Sprott. He has been wrong about the timing, but not about the fundamentals. He is recognizing this and sticking strongly with his positions. You see, being down 50-100% percent doesn’t matter much when over the next few years you see returns greater than 1000%. This is what Sprott sees. This is very much what happened to the guys who bet big against the housing market in 06 and 07, who were sitting on massive losses until 08. Michael Burry has a great story. He was sitting on significant losses betting against housing but persevered in his positions–I think he ended up making over $500 million due to holding his “once loser” positions.

  11. @silversavings – what you are saying is, it is ok for Sprott to lose on behalf of his clients approx 50% of his fund value over the past 6 months because ‘being down is great if its going to shoot back up’? Personally I would rather not gamble with Sprott’s knowledge and only hold physical. If his clients had adopted this strategy at the beginning of 13, they would have saved themselves from the utter disgrace of Sprott’s actions. The fact he is still public opining his silver/gold predictions is in the very least disingenuous to his clients.  Morally bankrupt is how I see it. 

    • Well, Sprott is a billionaire and I am not, so I will entertain the thought that he probably knows a few things that I do not.  ;-)
       
      Yes, not buying into his fund has saved you from large losses in 2013.  But that might also save you from HUGE gains in 2014-15.  While we cannot know the future, the PM fundamentals story is about as promising as it has ever been.  Good job on stacking physical PMs.  Most on here are doing that, among other things.
       
      Timing?  No one can time the market.  Peter Lynch and Warren Buffet are two of the most successful stock pickers of all time, yet both of them freely admit that they cannot time the market.  If they can’t, then neither can Sprott nor any of us.  The good news, of course, is that it is possible to make good money in the market without being able to time it.  One big step in that direction is to forget about timing and concentrate more on fundamentals and dollar cost averaging.
       

    • …..whilst the fund loses more value today. £840 per oz today here in the UK, hmmmmm looks attractive. Giving more fiat to Sprott, not so. Best of luck 

  12. Miners are not going to be nationalized.  They are money losing enterprises if they aren’t run by the private sector that can apply the work and expertise that govt could never provide.  IMO, oil companies are more prone to nationalization.   Argentina nationalized the oil company owned by the Spanish because its very profitable.   If they had 10% margins and high capex it wouldn’t happen no matter how Commie the govts get.   The miners will go back up.   They might get smacked down lower first and keep grinding sideways for a while.   Sprott will be right eventually.  You will have to be more selective than after the 2008 gold stock smackdown.   Many of the E&D companies will run out of money and not be able to continue.  This will be bad for shareholders of companies with no cash, no production, and nothing but drill databases and targets.   But it should be great for producers.   The big producers, and especially the midtiers and “growth stocks” in the gold sector were the first to recover in 2009.   The juniors followed, and the penny stock moose and lion pasture stocks were the last to run.   
    We are worse off now than in 2008 because the financial system is just as vulnerable now, nothing has been fixed except accounting methods have been turned into fraud, and govt debt is so much worse now.
     

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