billionaire Eric Sprott – Expect $200 Silver

Discussion in 'Bullion Investing' started by SilverForLife, Feb 16, 2013.

  1. mikem2000

    mikem2000 Lost Cause

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  3. medoraman

    medoraman Supporter! Supporter

    Some excellent points being made.

    Personally, i simply do not trust billionaires public opinions. Everyone remember Soros publicly talking against what he was doing a few years ago? These men are not above manipulating public opinioon for their own gain, in fact many are billionaires because of that tactic.
  4. green18

    green18 Sweet on Commemorative Coins Supporter

    Warren Buffet is my hero..........
  5. BigTee44

    BigTee44 Well-Known Member


    Even Warren was in silver!
  6. green18

    green18 Sweet on Commemorative Coins Supporter

    When he bought BNSF I said to myself, 'well, there's a young man going places'.......:devil:
  7. InfleXion

    InfleXion Wealth Preserver

    Gold and silver were the measuring stick before fiat paper took over that role in 1971. Today with paper traded markets the relationship they have with currency is out of wack. If not for price discovery being based primarily on proxies that make the physical market irrelevant barring a shortage then PMs would still be a reliable measure of currency. Since that is not the case their role as money and the core measure of value is being circumvented to extend dollar dominance. So you are correct as it stands, however PMs have never failed to return to their role as money over the course of history so a correction is due.

    Silver is classified as a commodity, but before that it has been money, and before that it has been an element that is different from all other non-metal commodities because it can't be created. So again you are correct, but it's only a small part of the picture. To treat it like a common replicatable commodity is erroneous because it doesn't grow on trees like fruit or fiat currency. It should be preserved as it is necessary for human advancement, and that would happen if it wasn't classified incorrectly. We are shooting ourselves in the foot by squandering it.
  8. InfleXion

    InfleXion Wealth Preserver

    Soros and Sprott in the same league? Not even close. Sprott hasn't destroyed any currencies. Just because someone is rich doesn't mean they are manipulative. Does someone automatically become untrustworthy because they reach a billion? Why not 10 billion, or 100? We've seen plenty of evidence that Soros has manipulated markets, but to my knowledge Sprott is simply offering a service people want, and didn't make his money by destroying markets and buying at firesale prices.
  9. mikem2000

    mikem2000 Lost Cause

    You have totally missed the point, no one is ranking Soros vs Sprott. The fact is, the more people SPROTT can convince that Silver is going to soar, the better it is for him. When people buy into his fund, he makes money if silver goes up or down, it doesn't matter. In addition, PSLV also has that interesting twist, that you have the option to cash out in physical silver. At this point SPROTT becomes a bullion dealer. To make things more interesting, it is quite costly to take delivery from PSLV, so now SPROTT is not just a bullion dealer, but a dealer who charges a high premium over spot.

    The picture clear, SPROTTS high silver calls are an attempt to manipulate individuals. While this is not the crime of century, and is really not much different than APPLE running commercials trying to convince you, that you want to be the cool MAC dude instead of the geeky PC guy, it is still manipulation.

    If SPROTT was just offering a service that people want, as you say, he would have no need to be making calls on Silver at all.

    So to sum it up, there is no ranking of who is the worst manipulator, but just the fact that rich powerful folks try to make you think in a certain way for personal profit. So for myself I don't put much stock into Billionaires rhetoric. They have an Agenda. YMMV
  10. -jeffB

    -jeffB Greshams LEO Supporter

    I don't think so.

    Yes, obviously, if your unit of currency is pegged to a gold standard, the "price of gold" will remain fixed in terms of that currency. But check out this table of gold and silver prices from 1840 to present. Even before 1970, the gold/silver ratio varied from 15.5 (1840) to 97.3 (1940)! How can "gold and silver" be "a measuring stick" when they vary widely relative to each other?

    Here, I think you're falling into the No True Scotsman fallacy. A "commodity" is a raw material or primary agricultural product that can be bought or sold. Now you're trying to distinguish types of commodities, and shift the argument based on that distinction.

    Copper, tin, coal, and uranium "can't be created" either, at least not in economically relevant processes. Why are gold and silver different from these "non-replicatable commodities"?
  11. SilverForLife

    SilverForLife Member

    Cool link.

    Too bad Buffett did not hang onto his silver......

    In 1997, Warren Buffett purchased 130 million troy ounces (4,000 metric tons) of silver at approximately $4.50 per troy ounce (total value $585 million). On May 6, 2006, Buffett announced to shareholders that his company no longer held any silver.
  12. mikem2000

    mikem2000 Lost Cause

    So Warren sold his silver for around $14 after 9 years and locked in 200% profit. Yeah, he is such an idiot for selling. I bet he was even too stupid to take that profit and invest in another under valued asset.
  13. SilverForLife

    SilverForLife Member

    I was under the impression Buffett was a long term investor not just a short term. On silver he bailed too early. He is still human.
  14. mikem2000

    mikem2000 Lost Cause

    He held for 9 years, sure he could have made more, and now it is easy to do Monday Morning Quarterbacking, but it is very difficult to pick the exact top and bottom. He saw the screaming good deal of the undervalued asset at $4.50. Kudos to him, In May of '06 as AU hit $14 it was now approaching the cost of production, and was not the solid value investment it once was and turned into more of speculation. He did the smart think and locked in his outsized gains.

    Now with his profits in the books, I am sure he looked for another value investment, and so it goes on. Not exactly the way a Stacker would do it, but hard to argue with someone who has amassed 46 Billion Dollars.
  15. InfleXion

    InfleXion Wealth Preserver

    It doesn't matter if he makes money off of it or not. He gave the reasons why he thinks the price will go up so there's no reason you have to take his word for it. If he were not giving reasons then I would agree with you. Maybe he knows the writing is on the wall and actually cares about the well being of others. We have seen the fruit of Soros' intentions because he destroys currencies. Sprott runs a business, and yes it is in his best interests but to use that as an excuse to throw what he says out the window is a leap of faith.
  16. InfleXion

    InfleXion Wealth Preserver

    We've got to go back further than 1840. That is still recent history. I've already posted all about this so I will simply link it.

    The point is that baseline for valuation stemmed out of the nature of precious metals, and currency is a less reliable proxy that has usurped the role of PMs as central banking began to take hold and undermine our metal standards back in 1786 with the First Central Bank of the US. Prior to the 17th century all money was commodity money.

    Yes, all other metals can function as money (coal can't because it isn't durable or fungible enough, only metal elements suffice as money).

    I am not shifting the argument. I am discussing the very first thing I engaged you about which is that metals should not be treated like common commodities, because commodities can have falsified supply numbers to "make a market" and provide "price stability" and "decrease volatility" and therefore our progress as a society will suffer due to a precious commodity being squandered that is absolutely necessary for technological advancement. So that was the argument to begin with. If you are referring to whether not silver is money, there is no argument. It has a face value and it is in fact money. There are many kinds of money.
  17. medoraman

    medoraman Supporter! Supporter

    I learned long ago there are three reasons for everything, a reason, a good reason, and the real reason. You may happen to coincidentally agree with them, but NEVER put your faith off someone who will profit from you if you listen to them. Humans are simply too greedy to risk it.
  18. InfleXion

    InfleXion Wealth Preserver

    I completely agree with you, and so do not believe it is a good idea have a faith based opinion about what someone says one way or the other. I would no sooner put my faith in him than I would put my faith in dismissing what he says.
  19. SilverForLife

    SilverForLife Member

    I wish I started at $4.50oz also.

    I also remember Soros saying everything is great and PMs are not needed. 6-months later he purchased a few tons of Gold. What all talking heads say and do are not always the same.

    I guess I am more of a Billionaire Jim Rogers fan than Soros/Buffett.
  20. 74Teen

    74Teen Member

    These types of discussions always bring to mind Mark Twain's Connecticut Yankee. :devil:

  21. mikem2000

    mikem2000 Lost Cause

    Fantastic, so we all agree we should put no faith in Sprott when it comes to Silver Investing. That is EXACTLY what I was saying.
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