Eric Sprott - change in sentiment in the gold spaceEric Sprott is deeply embedded within the gold space. He has a good pulse on all areas within the space. He is the Chairman for Kirkland Lake Gold - share price has gone from around $4.60 in January to $7.31 now (almost a $900 million market cap). His Sprott companies are involved with everything, from purchasing physical gold to investing in resource companies to managing physical ETF`s. His companies deal with both big instituational clients and smaller clients.
Eric is also heavily invested in the junior resource space, especially with his own money.
Although it is still early, Eric is saying he has seen a substantial shift in sentiment in all areas of the gold space, with the mining companies leading the way.
This is what usually happens at the early stages of an upward gold market. The money first goes into the majors, then the medium size gold companies. The juniors usually lag behind. They can lag for a while, but eventually the money flows down to the quality juniors. The juniors are where you get the biggest bang for the buck, but they are typically the last to join in. Though, perhaps a select few juniors are starting to move already.
A few topics covered by Eric on the audio:
1) Change in sentiment in the gold space.
2) All this worldwide talk about ban on cash will ultimately prove to be good for gold, as people will look for an alternative to being suppressed and controlled within the banking system, and forced to eat negative interest rates.
3) All of the economic results are poor both in the US and Globally. I think Eric missed something about US industrial production though. Eric quoted the slight increase month over month on industrial production. That is just a mirage. It was all in utilities and nothing else. This is not sustainable. More importantly, Eric missed that industrial production was down year over year - for the 3rd month in a row.
Here is a chart:
Link, if the image doesn`t show up:
https://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/02/16/20160217_ip.jpg Here is a link to Eric`s 14 minute audio:
https://www.sprottmoney.com/blog/february-19-2016.html