Sprott Money News Weekly Wrap-up - 8.23.19

you're listening to the weekly ramp up on spot 20 news greetings once again from Sprott money news and Sprott money.com it's Friday August the 23rd it's time for your weekly wrap up I'm your host Craig hamkke and joining us again now this week is our favorite fisherman Eric Sprott Eric how are you doing today hey Craig good to be back had lots of fun fishing but nonetheless good to be back in Civilization I was actually north of the Arctic as in the Arctic Islands and it's a little was a little bit rustic up there so something that Eric is not that used to but the fishing was great so good to be back it's nice to have you back hey and before we get started just a reminders brought money.com is your online source for all the best deals in physical gold and silver bullion and gold storage you can go to our web site and also find great information sign up for the newsletter so you don't miss out on any of the blogs that are posted there but also you might want to find the most recent ask the expert interview which I was privileged to conduct a couple days ago with David Rosenberg who is a fantastic economist and it was very insightful conversation you'll find that at Sprott money.com as well and if you're looking for metal again you can always pick up the phone and call us at 888 eight six one zero seven seven five man why wouldn't you be looking for metal Eric been an okay week but gosh we've had so many good weeks in a row that's to be expected from time to time we've had a lot of physical news this week too I'll let you just take it from there sure well you know the first thing I say now you mentioned Sprott money and buying coins and things like that I can tell you that retails back in the game here baby I do I can just look at what our weekly sales are like and they are vastly different vastly different than they were like one or two months ago probably by a factor of four hundred percent so it's not just central banks and big investors it's also individuals have come back into the play here so that's great I think the fact that you know the central banks continue to have this I mean you can't be more dovish than these guys are dovish and you can't be more uncertain of what everyone's going to do as you get more and more debt that's negative yielding I think we're up to now 18 trillion and it's hard to even comprehend what people must be thinking who are running pension plans and investment funds and so on and you got an asset that typically is at least 50% of your portfolio that's negative yielding and it's been great while you can book that capital gain because yields were going down and therefore the principal value of the paper was going up but my god if he ever just stood still mention if she stood still for a year at whatever the today's rates are and there was no capital gain and there was an income loss because of negative yield what are you going to do I should give you an interesting anecdote I was sitting in the meeting in the middle of this week with bankers I guess was last week with bankers discussing courts kind of a new line of credit that him that I might establish here and I started chuckling a little and I said I guess I should explain to you why I'm talking I'm just putting my head a year and a half forward imagining this meeting and the line of questioning is well how much interest you gonna pay me this year that to borrow that money from you right and what and that's it's a legitimate thing that might happen oh you want me to borrow money what are you gonna pay me like what about reversing the roles yeah it's just incredible anyway lots of great things going on in the physical world of gold and silver of course the Russians are still at it there they bought nine tons last month just this morning they are ending the VAT tax on gold oh my goodness Vladimir wants the people of Russia to buy gold and why wouldn't he right that's exactly what the people in Russia should be doing that's what the people in the United States and Canada should be doing long as the goals in the country at least your benefit in fact the country is going to benefit the most let the price of gold going up is India who owns most the gold in the world probably own a third of it all and then and their stupid government keeps raises the tax on it don't think how stupid can you be mind you central bankers can be pretty stupid but to be that stupid to not realize the benefit of owning the gold that your country's the biggest winner on the face of the earth and you want to tax it more oh my god it's just dumb founding what else do you want - let's talk about the the cotton reports commitment of traders reports for two weeks in row the outstanding short interest of the commercials has gone down yep it's gone down by 20,000 contracts that's what a hundred million ounces less short position the they lost money on the trade they don't normally lose money on the trade so I find that quite encouraging on the other hand the short interest in gold keeps going up and is almost at record territories if not at record territories so in this sense from a contra spective it's it's a bearish view and certainly from silver it's a neutral view of the report so everything seems to be well on the physical front in terms of gold is older getting back to a physical - you know you mentioned US and Canadians buying physical a so few people do Eric oh why is that do you think are they conditioned to not look at it as money is it is it a thing where maybe these negative interest rates will help change some minds what do you think is the biggest hindrance well I think most investment advisors who are not independent work for banks gold is like evil to banks and Italia Wyatt evil because it takes money out of the banking system you know when a guy buys a physical bar of gold that that's now you can't lever it in a bank right then he's taking deposits out of the bank and putting it into gold so most advisors have always had a great disdain for gold and I think what has to happen is you know after a while and we were well past that while the while being Gold's up whatever it's a forty percent from its low here in the last since twenty sixteen forty percent from its low and it's up something was it like twenty seven percent isn't 20-some percent this year people finally catch on hey I'm missing a mark hair and gold core gold and gold stocks being the number one performing group of stocks as I've said a million times the computers get it there just spit net out every day gold stocks gold stocks gold silver silver stocks sooner or later they're almost forced to come around so I think we're seeing that now I've actually heard mention of some advisors at some of the banks telling people that maybe they should be looking at gold investments or the precious metal and stocks so I think you just have to wear it down and you you know it's funny when you go back to 2000 of 2011 to think that gold stocks went up seventeen hundred percent well the market did nothing yeah nothing so you know the the weak you can get these monumental outsized performances when things turn well and I'll just give you a personal anecdote I happen to own 80 percent of a mine in Nevada that's hardly ever made money but I sitting there thinking gee these guys pretty son hundred fifty thousand ounces a year the price of gold up three hundred dollar that's forty five million dollars extra revenue and where we were breakeven I mean think of going from breaking even to making forty five million a year and put a multiple on it right oh my god oh my god how how dramatic is that change and I you know the stocks can't react fast enough for some of these guys where their earnings have already doubled and tripled and quadrupled because the price changed but the stock hasn't so we got more good things will happen in stocks going forward in my view and that's presuming that gold stays at 1500 I don't think is staying at 15 for one moment we're gonna see much bigger prices for gold and silver this year in my view and next year and maybe for quite a few years I think you're right - and now you know your friend Rick rule mentioned that last week if anybody missed the weekly wrapup last week Rick subbed in for Erik while he was up in the Arctic Circle fishing and he pointed out that over the last 40 years the amount of investable assets individuals institutions that have been focused on the precious metals has ranged from the current low of 1/2 of 1% up to 8 percent in 1980 with the median being two and a half percent my goodness Eric if we just go back to the median how much money that I'll be staggering it would be staggering for sure and you can't do it I mean you can't do it without the prices change you can guys there's nothing to buy right I mean it has to be a price change the amount of gold that goes into the system every year increases by about one-and-a-half percent one and a half percent so we're at X we're going to be a 101.5 X at the end of this year so how do you go from half a percent to something substantially larger than the price has to change exactly Eric let's wrap up this week as we usually do do you have a few updates anything you want to mention on some of the stocks you follow and then I'll have a couple questions for you yes sir well first of all wallbreach came out and announced that they're stepping up the drilling campaign I think they're going to have five drills up there now I know that they had a tour yesterday up to their Fenelon property I've had a preliminary on it and everything looks great I mean I think you know they obviously are stepping it up because they have great expectations for to find large amounts of gold so that's all very encouraging a company called Amex came out with some pretty interesting drill results just the other day there and also in the Abitibi region it's a very small company but it's starting to shape up people should maybe take a look at those news releases and draw their own conclusions things are still busy in the Golden Triangle to door and to Thanh and American Creek and Brixton are all actively drilling and you know we're looking for bigs air we're looking for guys to find 10 to 20 million ounces so fingers crossed up there are there any particular questions you have in any companies that the listeners might have same thing I do and I and I should mention we get up boy are we gonna list every week and it's really fun right because we have so many I mean would we have over a hundred thousand listeners last one or the one before so we we a lot of requests for individual names I should mention to all the listeners that I take that list in just to save time I run the names past Eric to begin with and if he does not know anything about the company you know just not familiar with it then we kind of try to save time by not asking about it so if your if your name that you sent in doesn't appear here in the show it's not that we just ignored you it just just assumed that that's one Eric doesn't know much about but some of the names on the list this week Eric I'll hit you just in with a couple of them at a time how about new gold or heart yeah I probably looked at each of them I I but I'm not intimate with him so my opinion wouldn't be valuable okay there you go see how that works okay how about Klondike is that one that you've owned it yeah well Klondike I own and I might actually own a material amount of that there up in the Yukon they've announced some recent results it's still very early to suggest the significance of what they found but the drilling has been quite encouraging and hopefully in time they'll prove up a big resource you know we've never really found the source of the Klondike Gold that was all found in the rivers and streams but we don't know where the the mother lode was and that's kind of what they're looking for so fingers crossed on that one you mentioned the last couple of weeks about looking for opportunities in silver they're so few out yeah how about a couple of names that I hadn't heard before impact silver or a company out of Australia called silver mines yeah well I own impact silver I own a very small position I think it took a small piece of recent and really all and I don't know it intimately because it's such a small position I mean literally why do I buy these things because they just looked cheap on the surface you know they say they have whatever number of millions of ounces the market cap is and I have these great expectation for a silver fine I want to own it because I want to own there's hardly a silver stock that I don't own with the exception of silver mines in Australia which I don't own I had looked at it and I I don't remember the details of why I might have passed on it but it might might have had to do with the valuation in terms of the market cap versus the ounces or the fact that it's it's in Australia I don't really understand what's happening down there but again all these silver stocks think I'm going to do incredibly well with the kind of targets that we're looking at and silver here which I'm sure hoping will go through it's old high of $50 so it will be an incredible place to have some money here's a question just about benchmarks you know a lot of folks look at the GD X or the hu I index and use that as a gauge as to how the shears are doing it do you have I guess your own mental benchmarks Eric do you think okay at 1600 our gold when we get there I'd expect the GD X to be you know a certain value and and so on and so forth well I don't but I would say this I mean you you mentioned 1600 I mean let's say the average guy's cost all-in was like 1100 so we was making $200 at 1300 now it's 1600 now he's making $500 he's making one hundred and fifty percent more and and things are going our way would I expect the stocks will be up 200% yes I would because they were so beaten down before so it's it's that simple I mean and of course the more high cost they were such as for example d2 or things of that ilk I mean the more they're gonna go up because their profits are going up by three and four and five hundred percent right so yeah I mean it's it's not that it's a very simple thing you go and find out what the guys cost of the meadow as enemies breaking even and the price of gold was 1300 in the last quarter he breaks even you know that he's making $200 more well which is multiply the number of ounces times $200 and figure out what the earnings per share are gonna be and you you know put whatever mostly he thinks appropriate on you'll know exactly what the stock should trade it Eric let's end with this I know you've only been back in Civilization for a few days but perhaps you saw the news of another convicted trader from JP Morgan for manipulating spoofing priceless is in there what uh what do you make of that news this week more of the same there was a great article actually Ted Butler wrote a great article he basically said he said that JP Morgan is just a factory for crooks right I mean these guys are trained how to spoofs the market that's what that's what they're they go there they were trainer they get hired they're told here's how you spoof the market and now we've got to JP Morgan convictions and who knows I mean if they got ten silver traders they we might get ten convictions so it's just part of the unfortunate history of of silver manipulation and gold manipulation for that matter and we all know that was happening and of course the bigger pictures you know how much was the macro manipulation of gold so which I'm absolutely convinced I mean I just saw what happened when it crashed the last time and it was just so orchestrated by the big banks that it was sickening and hopefully this time you know people will there's enough buying around that they won't be able to mess around with the pretend markets in the colemak so yeah that's what we're hoping for well it's great to have you back my friend later on today we are gonna have a this speech by Chairman Powell at Jackson Hole so we'll see how that impacts gold and silver and where we finish up the week but we'll get back together next week and we'll talk about that I suppose one thing you know it's gonna be crazy you know the commercials would love to slam gold here and silver they love to so oh my god if he comes out with a word you know in mid-cycle again look out it's gonna be bad of all a hopefully it's a little more dovish than that and we can just carry on here as we have done in since the bottom in 16 so fingers crossed well we'll try to navigate through this day and next week and then Eric will get back together next Friday until then I hope you have a great weekend okay Craig all of us good to be back and from all of us here it's brought money news is brought money calm thank you for listening have a great weekend [Music]

Channel: Sprott Money

Views: 6,586

Rating: 4.9818182 out of 5

Keywords: gold, silver, buy gold, buy silver, buy silver online, buy gold online, precious metals, eric sprott

Id: X1ChQHMUjw8

Length: 18min 23sec (1103 seconds)

Published: Fri Aug 23 2019