Revisit Sprott (SII-T) summer doldrums 2013
www.sprottinc.com
Sprott urges investors to stick with gold
The big rout in gold prices is not enough to sway Canada's chief gold bull. Eric Sprott turned his ability to call the gold and silver markets into personal wealth that once topped a billion dollars.
His investment firm, Sprott Inc., has been hurt by gold's recent plunge, but the company founder predicts gold will roar back and even hit new highs by the end of the year. "I've always imagined that gold would hit a new high by the end of this year, over $1,900, so that is what I think," Mr Sprott said.
Gold is now bobbing below $1,400 an ounce. Mr. Sprott believes gold is safer than paper money, which can be printed by governments. The billionaire says he has about 80 per cent of his money in the precious metals sector. "I think [gold] will end up for the year, just like in 2008 ... because in a financial crisis, you don't want your money in a bank," he said.
He likens the current pullback to 2008, when the price of gold fell 30 per cent in eight months amid the financial crisis to $712 an ounce, only to rally to $873 by the end of the year and more than $1,900 by September, 2011. |
