Sprott & Embry tend to cheerlead a bit, and drive by the rearview mirror – but anyway. Sprott sees silver as stronger than gold, over the next time period, and claims to have over 90% of his personal worth in PMs, and sleep well at night. (IMO, 20% is more than plenty in the PM basket, and time to start looking for OTHER ways to diversify out of fiat. May I help you select from our fine assortment of Maine beaver swamps?)
The printing of money makes gold more valuable. You don’t have to be a genius to figure this out. The Johnny-come-latelies – the Paulsons, Einhorns and Soros – all figured out, when [the Fed announced the first round of quantitative easing], that they should own gold. It becomes more obvious every day as you see these financial challenges that we have in Europe.
I think gold is the reserve currency today. There is not a currency in the world that it hasn’t appreciated against by at least 300 per cent. And it has beaten every stock market. You can’t even rent a safety deposit box in Germany because they are all full of gold and silver … I am pretty convinced that gold will go a lot higher because it is under-owned as only 1 per cent of people’s money is in it. It could go to $2,000 an ounce. I could imagine it at $5,000. I am not giving a time frame on that, but I could certainly see that happening. But the real story now is silver.
…. I believe that the price of silver has been suppressed.
Do you like base metal stocks because of China’s growing demand?
I wouldn’t be a buyer today. If interest rates go up in Europe and you have these policies of contraction, how much can China bear? I don’t believe in the growth of the developed countries, and China needs the developed countries to buy goods.