Eric Sprott Talks Up Silver on CNBC, Silver Ready For Big Breakout? (SLV, GLD, PHYS)

Eric Sprott on CNBC 4/15/2010
Eric Sprott, who runs Canadian hedge fund Sprott Asset Management, was on CNBC a few weeks ago talking with Maria Bartiromo.  He is bullish on silver and gold and bearish on the market and cyclical metals.  His firm just started a new gold ETF in March called the Sprott Physical Gold Trust ($PHYS) which offers a "physical delivery option", unlike GLD.  I will chart out SLV and the silver future tomorrow and look at the options.  Unlike GLD, SLV hasn't broken through the 2008 highs yet.  Longs are closing in on the big battle though.  Below is the CNBC video and key points he made during the interview.

  • Worried about China, Government putting breaks on lending could affect economy
  • Gold looks better than ever based on heightened sovereign risk
  • Bank withdrawal risk in Greece to PIIGS could move currencies into gold, silver
  • Sprott thinks silver will act better than gold, not as much silver inventory as gold inventory
  • He thinks financial crisis not over yet, not a fan of copper, nickel, cyclical metals
  • Risk transferred to Government, if people stop buying sovereign debt, gold will shine
  • Thinks China could be downside catalyst for the market
  • Aside from precious metals, Sprott also has exposure to oil and gas

Here is the Sprott Asset Management April newsletter: Weakness Begets Weakness: from Banks to Sovereigns to Banks