Eric Sprott Forecasts Silver at $100

No matter where you look like, crazy forecasts are rising about silver.

Eric Sprott is a well respected hedge fund manager, but now, I believe that he's shifting toward conspiracy theories, and listening to this interview, while he says he bases all his forecasts and investments on fundamentals, it feels to me like he's very much more driven by psychology and sentiment — love of the shiny metal.

For example, he stating that:
  • there's a silver shortage — while he's still getting his physical deliveries, like everybody else.
  • China is buying a lot of silver, but we don't know where that silver is coming from — huh!
  • We expect the gold/silver ratio to reach its historical mean. While this could mean that gold would decline relative to silver, for him, there's only one way that this mean reversal could happen: silver has to climb to $100. Almost 300% from were it is now. huh!

While I do own physical silver and gold, I do not expect to see them go a lot higher from here, and actually believe there's going to be a major drop in both of these assets.

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