During a time of widespread investor desertion of the precious metals and natural resource space, Eric Sprott, Chief Executive Officer and Senior Portfolio Manager of Sprott Asset Management was kind enough to share a few comments.
Eric noted that in these periods of extremely negative market sentiment, the seeds are sown for, “Stocks [to] go up multi ten thousands of percent in the gold and energy spaces,” during subsequent up-cycles. That volcanic performance is often caused by a combination of rising metals prices, and “everyone getting excited about discoveries,” which Eric expects will occur again.
Here are his full interview comments with Tekoa Da Silva:
Tekoa Da Silva: Eric, you comment often on the Western Central Banks, in terms of their disregard for gold as an asset class of importance, so I’d like to ask—do their actions speak otherwise or have they been letting out all their gold to Asian hands during this East/West physical transfer that we’ve seen over the last year?
Eric Sprott: Well, Tekoa I’ve written a number of articles where basically I ask the question, “Do the Western Central Banks have any gold left?” and I suspect that it is very, very limited these days and when I looked at what happened in the last decade, I can see that there was substantial net new demand for physical gold, over 2000 tons a year. You take it over a decade, and you’ve got 20,000 tons. ...