“I think it’s becoming obvious to everyone that it’s the one area that you can feel safe to invest in. We are witnessing events unfolding that are suggesting to us that we are finally seeing a differentiation in the market between gold stocks and general stocks.
One of the key days was August 19th and on that day the Dow was down something like 500 or 600 points and the HUI gold index was up 4%. When you can outperform an index by 800 basis points in one day, it’s telling you that things have changed.
We all recall that in the last serious market selloff in 2008, the gold stocks got hammered. This time when the markets are weak, typically the gold stocks and gold have done well. So there have been a lot of things that have changed in the market just recently, that are telling us the market is looking at gold very, very differently than it has in the last ten years....
When asked where he sees the price of silver headed Sprott responded, “I think silver will outperform gold in the next decade. If silver should trade at a 16 to 1 ratio (to gold), it will probably trade at 10 to 1 because things tend to overshoot. Let’s use Jim Sinclair’s $12,000 target, that would suggest $1,200 silver, which is a thirty bagger from here...The biggest reason it (silver) should go there is people should fear bank deposits, that’s what I think they should fear.”
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