I think an article titled ‘Sprott Money: The Price of Silver Could Explode’ – reading time 5 minutes – is well worth reading if you hold, or are contemplating holding, physical silver and silver explorers, producers, royalty, or silver streaming companies.

The article is a transcript of a recent interview of Eric Sprott and his daughter Larissa by Karen Roche and Sally Lowder of The Gold Report conducted on (or just prior to) March 11.  It will come as no surprise to regular readers of these e-mails that Eric Sprott is very bullish on the price of physical silver going forward.  He is also bullish on the trend price of physical gold, and to some degree reaches the conclusions he does that the physical silver:physical gold ratio will revert to its historic 16:1 ratio (from its current approximate 40:1 ratio) in the next 2 – 5 years.  He also comments on manipulation of the silver price, saying that if there has been manipulation (and he doesn’t say he is certain there has been) that manipulation will end as more and more people take physical delivery of their physical silver purchases – something he says is now occurring.  Sprott also comments on some of the silver companies his firm ‘likes’, but does so in what I think is quite an objective way.  Importantly from my perspective, at one point in the interview he talks about country political and economic risk, saying that those risks are priced in to the market for individual securities.  That is certainly the theory of what should happen, and I hope it broadly is an accurate statement. I think country risk will become an ever increasingly important ‘risk measurement factor’ in commodity share price analysis as we move forward.  I find Eric Sprott easy to understand, and think of him as someone who says what he really thinks.  Again, I suggest you read this article, then reach your own conclusion(s) as to whether Sprott’s views make sense to you.