Yet again, Sprott made so many classic mistakes of investment management and judgement, that I'm getting very worried for his investors.
See below some selected quotes:
It's been going up 17% a year for eleven years now, so I would assume it will go up 17% this year. — That's the power of the markets and one of the biggest weaknesses of the human brain: take just a few data points, and extrapolate this into a line until the infinity. This kind of reasoning is very similar to the house prices that were supposed to go up 10-15% a year forever.
"The fundamentals are driving gold and silver: money printing by the Fed." — Any investor or analyst who doesn't understand the price action will justify it by saying the fundamentals are great. Silver is up 40% or so in a matter of 3-4 months. Anyone who explains short term market movements by saying how good/poor fundamentals are, doesn't get it. The fundamentals affect secular trends and are many years in the making. The fundamentals of silver haven't changed much since Jan.
"There's a lot of inflation" — Where? Compared to the 40% jump in silver prices in 4 months, retail prices are quite stable, wages are stable to down, money printing is not compensating for all the credit destructions...
"I've owned gold for 11 years, and I've never sold any of it".— Reminds me of people who owned their property for 11 years, and never sold it... We know how it all ended.
Enjoy the interview, and as usual, Caveat Emptor.