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Gold is soaring, silver's catching fire, and legendary investor Eric Sprott says the real move is just beginning. In this must-watch episode of Ask the Expert, Craig Hemke sits down with Eric to discuss gold and silver price forecasts, mining stock opportunities, and why now may be the best time in decades to invest in precious metals. Watch the full podcast now and position yourself for what could be a historic run.
Eric Sprott on Gold Price Trends: Why 2025 Could Be a Record Year
Eric Sprott sees 2025 as a historic breakout year for gold. With gold prices currently above $3,400, he believes the fundamentals are finally allowed to manifest after decades of manipulation, especially by large banks using short positions on the COMEX. According to Sprott, institutional interest is rising, and physical gold is being steadily withdrawn from exchanges like the LBMA and COMEX—a powerful signal that demand is real and growing.
He emphasizes the incredibly tight supply environment, noting that the gold mine supply grows by only around 1% annually. With demand surging and limited new production coming online, gold's upward trajectory seems hard to reverse. Sprott has nearly 90% of his portfolio in gold and silver-related assets, a position he says is growing in value and importance daily. His bullish stance is built not only on market sentiment but also on a solid supply-demand imbalance.
For retail investors looking to buy gold, Sprott warns against unallocated or paper gold products. Instead, he recommends owning physical gold or well-managed ETFs backed by real metal, such as those offered through Sprott. His outlook remains firmly positive, expecting higher all-time quarterly closes and potential record-setting prices in the months ahead.
Silver Price Forecast: Eric Sprott Predicts a Run to $70 and Beyond
Few voices are as consistently bullish on silver as Eric Sprott, and in 2025, his conviction has only intensified. He credits analyst Michael Oliver for accurately calling the initial breakout above $35 and projects a powerful follow-through toward $50, $60, or even $70 silver within months. According to Sprott, this is no speculative surge—it's the result of a real, systemic supply shortage.
Silver demand is being driven by its critical role in solar energy, solid-state batteries, and military technology. Meanwhile, supply remains stagnant. Only 25% of global silver production comes from primary silver mines, with the rest as byproducts of other mining. Sprott points to a recurring 200 million ounce annual deficit and years of drawing down above-ground inventory. "We've eaten through 800 million ounces already," he says, warning of an imminent crisis.
He also challenges the long-standing gold-to-silver ratio, which hovered around 100:1. Sprott believes a reversion to historic norms (closer to 15:1) is inevitable. If gold hits $8,000, as Oliver predicts, silver could surpass $400. Investors looking to buy silver now may be catching the early stages of an unprecedented move.
Sprott's preferred vehicles include SIL and SIL-J ETFs, and a strong position in junior silver stocks where he sees massive upside potential. "If a silver miner's cost is $20 and silver hits $70, that's $50 in profit per ounce," he says. "That kind of margin means stocks can rise 800% or more."
Mining Stocks Investment Strategy: Why Eric Sprott Prefers Junior Miners
While many investors chase large-cap gold producers, Eric Sprott firmly prefers junior mining stocks, especially in silver. He argues that smaller companies offer the most dramatic upside, particularly when precious metal prices surge. According to Sprott, many of these companies were considered "worthless" just a few years ago but are now sitting on extremely valuable deposits due to rising prices.
"When prices rise, the worst companies become the best performers," he explains. That's because low-grade resources that were once unviable become highly profitable. Sprott shared examples of companies he bought at 6 cents now trading at $1.20—a 20x return—and sees potential for another 10x from here. His portfolio includes names like Freegold Ventures, Highcroft, and Discovery Silver.
He looks for companies with large, undeveloped deposits in favorable jurisdictions, such as Canada and Nevada. But the resource itself is always his top criterion. "The deposit is number one," he says. "Second is the metal price outlook. Management is only third." This contrarian view allows him to spot neglected stocks with strong geological potential.
In addition to juniors, Sprott also likes ETFs like SIL-J for liquidity. "You can move millions in and out without distorting the price," he notes, unlike thinly traded juniors. But for massive long-term gains, the juniors are where he places his biggest bets. As silver and gold prices rise, he expects these forgotten assets to become the market's best performers.
Why Eric Sprott Says Now Is the Time to Buy Gold and Silver
Sprott believes retail and institutional investors are still dramatically underexposed to precious metals. He cites Bank of America data showing that financial advisors allocate less than 1% to gold and silver—while he holds around 90% in metals and miners. According to him, this discrepancy creates an enormous opportunity.
"If institutions decide they want just 2% in gold stocks, prices need to rise eight times," he says. That's because the pool of mining stocks is shrinking. While junior miners are issuing new shares, large-cap producers are buying back stock and paying dividends. With no significant net issuance, any increased demand must be met through price appreciation.
Sprott highlights that gold stocks, even now, are vastly undervalued. Many producers trade at just 1x next year's cash flow, despite gold prices nearly doubling in the past two years. Meanwhile, silver miners could see profit margins explode. "At $70 silver and a $20 cost, that's $50 profit per ounce. Imagine what that does to your valuation."
He urges investors not to wait. Physical metals are being removed from the COMEX daily, ETFs are seeing inflows, and small-cap stocks are doubling in months. As central banks continue to erode fiat currencies through excessive debt and spending, Sprott views gold and silver not just as opportunities—but necessities.
Eric Sprott and Larissa Sprott at PDAC 2025
Precious Metals Market Manipulation: Eric Sprott on the End of COMEX Control
One of Eric Sprott's most consistent messages is the role of manipulation in holding back gold and silver prices. For decades, he's accused a small group of large banks—particularly eight key players—of suppressing prices through excessive shorting on COMEX. But in 2025, he believes the tide has turned.
Sprott sees evidence that these banks are giving up control. Since February, the gold rally has been fueled not by speculators, but by commercial short-covering. "The people who used to cap the price are now buyers," he explains. "They realize they're out of metal." He believes that in silver, the same phenomenon is just beginning, setting the stage for an explosive breakout.
He warns that current high call option positions—especially on SLV—could create volatility as banks scramble to manage exposure. But that volatility is a sign of cracks forming in a system long controlled by coordinated forces.
"The COMEX used to dictate prices," he says. "But now, physical buyers are draining inventory daily. They want the metal, not the paper." Sprott also suspects that governments could one day attempt to nationalize remaining silver reserves as supply tightens, similar to gold confiscation in the past.
For Sprott, the manipulation era is closing. Fundamentals are taking over. That's why he remains all-in on metals and miners and encourages others to study the physical delivery data and ETF flows. "The signs are all there," he concludes. "It's finally happening."
Start protecting your wealth now — invest in gold and silver today. Contact the Sprott Money team.
Craig Hemke (00:00)
Hello again from SprottMoney and SprottMoney.com. It is June 2025. It is time for your Ask the Expert segment and we're going to have some fun this month. I'm your host Craig Hempke and joining us is everybody's favorite said expert and everyone's favorite retiree, Eric Sprott himself. Eric, my old friend, good to see you.
Eric Sprott (00:29)
Okay, great to be here. I think it's a bit of an understatement to say that we're having a good month. I mean, we're having one of the greatest years of all time. Okay. And it seems to want to just keep going. So instead of you and I being the two guys complaining at the Muppet show from the balcony, we can maybe have smiles on our faces now. Say, well, I told you so, right?
Craig Hemke (00:52)
I almost have like, what do they call it? Stockholm syndrome or something like that. You know, we've been held hostage for so long.
Eric Sprott (01:01)
Oh yeah. I review my time with the gold space, I actually say, look, I started this in 2000, exactly at the bottom of gold. Okay. Cause the market was about to crash and as that, and I got into gold stocks and I said, and I've had to fight the manipulation for 25 years and it ended in gold at 2000. And I think it's over in silver now at $35. Now they were at 37.
So it's been a 25 year fight. We all know about the guys messing around in COMEX and the fact that, you know, the COMEX price of gold would probably, if you just traded COMEX every day, they'd probably be about a hundred bucks an ounce. But if you traded out of COMEX, it'd probably be 50,000 an ounce. It just tells you what's going on, right? It's ridiculous. Anyway, we will get into it.
Craig Hemke (01:51)
Well, yeah, first, just a little bit of ⁓ a good word about the company that bears your name, Sprott Money, ⁓ who pays for all this stuff, puts it out there, you know, has to have the production crew, everything else. Thank them by visiting SprottMoney.com, keeping them in mind every time you're in the market for some physical metal. and if you buy enough of it, you got to have a place to store it. Right now at SprottMoney.com, they've got great specials on storage, safe storage as well.
So please go to that site, SproutMoney.com. Give them a call, 888-861-0775. And be sure to like, subscribe on whatever channel you're watching, because there'll be more content coming this month and next. But anyway, as for the current content, my old friend, yeah, you know, since the last time we spoke, which was right at the end of last year, so this is kind a little mid-year update, ⁓ gold's off to this fantastic start.
the year that, I mean, even I didn't see it starting this strong. And Silver now is catching up as well after lagging. Let's just start there, your general thoughts on what's driving all of this.
Eric Sprott (03:02)
Well, as you know, I'm a disciple of Michael Oliver's at MSA Consulting. And I think he's been so right on what to expect in the metals. And he was so good on gold and the gigantic move we had. And of course, he's been pounding the table on silver that silver is going to, you know, break through 35. When it breaks through 35, it's going to be a run of, you know, three to five months to get to 50, potentially 60 and 70 this year. So even from here, let's take his upside target. ⁓ my God. If silver ever went to 70 bucks and the average silver producers at $20 cost, which is high, he's making $50 an ounce of silver. Do we know how much these stocks are going to go up by? Because at 25 bucks, the guy probably didn't even make five bucks.
And now he's making 30, making six times as much or at 70 bucks, he's making whatever that is. 800 % more money. So like, it's just mind boggling things that can happen. If you make an 800 % more, your stock can go up 800%. Your stock could go up 800 % in a year. If it went to 70, you know? Yeah. And that's the same with the goal. Every time I look at a goal producer,
I think, my God, these little ones, it's trading at one times next year's cash flow. When's the market going to catch up to this? And when I look at these stocks, when I look at any stock these days, if somebody told me it's going to go up five times, I say, well, I'm not interested in that. I want a 10-bagger or a 20-bagger. And of course, I'm assuming the prices go up and stay up. And even in the case of gold, I don't even have to assume they're going to go up. They're already up.
Speaker 2 (04:55)
Right.
Speaker 1 (04:56)
You know, when I look at the difference in margins today at $3,400 gold versus 2000, it's stunning. They're probably making 15 times more profit, 15. And the stocks really have not reacted as wholesomely as they could and will do because people are just starting to focus in on it. It's the one best performing group for sure. I think I read that the weighting of stocks
⁓ gold stocks in the port in all portfolios, I'm like 0.25%. Okay. And somebody saying, well, maybe you shouldn't have, by the way, I have 90%. Okay. Just so everybody knows, and that percentage is going up fast these days because my cash ain't giving me nothing. I don't have much cash needless to say, you know, ⁓ but somebody is saying, well, you know, you should have 2 % in gold, which of course is a flimsy little participation.
To get 2%, quite frankly, the stocks got to go up eight times because there's probably hardly any net new issuance because yes, the smaller companies are doing issues. The bigger companies are buying their shares back and they're probably spending more money buying your shares back than the little companies are raising money because they're cash flowing a billion a quarter. And they all got stock buybacks and dividends and things like that. So anyway, I'd say it's the pool of stocks is shrinking.
And we want people to have eight times more in stocks. Well, how the hell are you gonna do that? You gotta drive the price up by eight times. That's to get to 2%. When the average guy should be 10 or 20%.
Speaker 2 (06:33)
Regarding the metals themselves, Eric, there's a lot of people that think maybe the banks that have managed the price for all these decades, once we broke out above 2000, just finally said, we can't do this anymore. look, I track the commitment of traders every week. Since February, the rally has been driven by
commercial short squeezing by commercials buying them. Speculative positions been cut in half. It's the commercials that have been driving it by covering their shorts. There's thought now the same thing. might be on the brink of that in silver. What do you think of that?
Speaker 1 (07:10)
Well, I think we are. And I do believe that it's been manipulated for the last 40 or 50 years. see that. Look, we know that eight banks have most of the shorts. Well, why banks? Why only eight? Why that big? I mean, there's no logical reason for it other than it was a market that they could mess around in because of their sheer size and working together, working together. And now they realize that
which they saw happening gold. my God, do you have people really want to buy this stuff and they're buying it from us and we don't have enough gold anymore. And we all know that in silver we've had a 200 million ounce shortage for the last four years. We'll have one again this year. People are taking gold off the COMEX and silver off the COMEX every day on the COMEX. Every day the spot month trades some amount of metal that gets asked for delivery the next day.
This never happened before. You and I have been around this. There were never any deliveries. Now there's massive deliveries all the time. And who's buying it? Well, I presume they just have to buy it to cover their damn short. So I think silver, as Michael says, is probably going to go to 50 very quickly here, three to five months. can blow through here. I've never believed in the hundred to one ratio between gold and silver. Ever believed in it. Why did that happen? It's produced eight to one.
It's in the Earth's crust, something like 10 to one. Historically, as a currency was 15 to one. Why is it at a hundred to one? Why was it at a hundred to one? Because someone was manipulating it and suppressing it because it's a very important metal silver, very important, particularly for the military. You know, all those missiles that are being fired off around the world, they consume a lot of silver. And then there's so many other uses. There's no sense me going into it. Everyone knows about that, but
I think we're in a shortage situation in silver and God knows how high it could go. know, if Michael's Oliver, I think his target on gold is 8,000, the way outside target. Well, if you went to 15 to one, what would that be like? $200, $400 something like that. It's a big number.
Speaker 2 (09:33)
Those are, yeah, that's a very big number. Yeah, and I know you've been, again, you've been an advocate of this for so long. That investment driver that you mentioned is probably something we should touch upon because there's this theme out there that somehow, just because the price has gone up in gold, it's a crowded trade and the price is overbought. But yet, in terms of, I mean, because you interact with,
financial advisors, you know, and, and a big sell side and investment houses and stuff like that. Do you sense there's any call it mainstream involvement in the price metals?
Speaker 1 (10:13)
yet.
I'm pretty certain they're looking because and I've said this many times to you and then your listeners. know, if every day the computer spits out and says the best performing group was precious metals next day, precious metals, you know, after a while, even the analyst who's reading this, go, well, what's what this precious metal stuff here? You know, the fact that I don't even the silver up 50 % this year and gold's up over 50%, something like that. I don't know what the hell the number there, but big numbers. Okay.
in a rather difficult stock market. And they will all come around. We see it now in one sense. When there are issues done for these smaller companies, they're very well subscribed, not over massively oversubscribed. So they're out there, okay, looking in. And when it comes to the metals, you know that the metal supply of gold only goes up 1 % a year. One. Right. How the hell does somebody
you know, come in and buy more gold when there's only one percent more gold that year. You don't get many guys in. OK. And as I just went through with the stocks, the stocks might not even be growing. The number of shares that you can buy, they might be shrinking. it's not easy to get in. And that's why one can imagine we could see like outer worldly gains here. We've already seen it in lots of stocks. OK. I can't believe the number of times I think I have shares in that company. Let's go look and see what it's like. Oh, my God, it doubled.
You know, some name I haven't even looked at in five years. And in the last two months, it's doubled. Right. And I could see why people are going there because people are getting interested in all kinds of metals to platinum, palladium, rhodium. I hear about gallium, germanium, all kinds of copper. I mean, there's a there's a move to get into these things. So it's a great time for us right now. And I think we'll have ⁓ lots of days in in the sunshine.
Speaker 2 (12:08)
Yeah, again, yeah, you just wonder about just simple diversification, because I've seen those stats too. I think it's Bank of America that puts them out. Yeah. know what? 95 % of all financial advisors have a less than 1 % exposure for their clients and the precious metals. Where do you think, I mean, we've had this terrific run. like AgNECO is maybe tripled. I've got, you know, there are others out there that keep their costs low.
Speaker 1 (12:24)
Right. Yeah.
Speaker 2 (12:37)
And so the margins keep widening. would think there's, you know, price continues higher for gold. They're just going to continue to just print money every quarter. Where is the where's the in your mind? ⁓ Is it are we is the sweet spot now still with those big producers now moving more toward the juniors that maybe have lower costs? Are we ready? Exploration companies yet? Where are we?
Speaker 1 (13:00)
Well, when you when you get a big, big move in the metal prices, which we've had in gold already, and we're experiencing now in silver, the best performing companies are the worst companies, the ones that everyone hated. In fact, I had one, I had my controller for me, you know, Eric, you lent some money and invested in this company called whatever it was called. OK. And I'm thinking, yeah. And they had a resource, didn't they? I think they might have had a million ounces.
And this is probably 15 years ago. It's probably one gram, one gram or one or two grams. my God. Well, that one, that would be profitable today. Yeah. We better dust that file up. Let's look at that. my God. Yeah. Because the guy it's pretty, you know, has the lowest grade. He's a guy benefiting most by the price going up. Okay. Yeah. He gets the most bang for the buck.
So yeah, we're all moving down cap. Don't you worry. I mean, I would never own a big cap stock. Okay. That's just my thing because I think there's always more value in the smaller ones because they're neglected. And anything that neglected is creating opportunities for you as an investor because people aren't adjusting to what's going on. I had a stock. I'm not going to mention the name of the, he did a PEA and said his, his a nav was 300 million a U S at 1980 gold at 2280.
It went up by 200 million to 500 as well. I'm 2280. It's 3380 right now. That's five more of those changes. Okay. It could be worth 2 billion now. And the market cap is a hundred million, you know, that I'm saying, well, there's a, that's an extra 2 billion by the way. Now, and now I got them up to 3 billion. There's a 30 bagger and that's before the price of silver goes to 50 bucks or gold goes higher. So there's so many opportunities out there.
in these smaller companies that nobody's paying any attention to. And I know I continue to buy those kinds of stocks all the time.
Speaker 2 (15:04)
What's the most, I just didn't like, hey, I want to kind of follow what Eric Sprott does. What's the, what are the most important things that you look at? it how you measure the ounces in the ground or what are your key measures?
Speaker 1 (15:18)
You know what I say it and I know management always hates me when I said this, the most important things about precious metal companies, the deposit. Yeah, that's the most important thing. The second thing is the price of the product and its outlook. Where is silver and gold going? And then I say, and maybe third is the management. But if you don't have the deposit and the metals aren't working for you.
Speaker 2 (15:30)
resource itself.
Speaker 1 (15:47)
You're not going to accomplish much. OK, so those are the two most important things. And unfortunately, a lot of managements, well, they take themselves pretty seriously, right? And they don't know where the price is going. And they think, well, that's up to the market to determine. Well, you should know the price is It's pretty important, you know, should you be making that acquisition? Well, where do you think the price of gold is going to be? You would think you better have a view.
And not just some, you know, well, we use conservative pricing over here, you know, okay, fine. You keep using your conservative brand. I'll buy the stock. can buy it from me later. Anyway, so yeah, I think you can go down cap here now. Okay. And you can buy things that look like they're going to be on economic two years ago that almost guaranteed our economic today. And maybe no one's even looking at.
So there'll be lots of opportunities like that. I haven't really gone down there hunting yet, but I do know that many of the time I said, let's say somebody, just give me a list of the size of deposits that people have. I want to know who's got the big deposits. So for example, Highcroft that I just participated in their issue, they got about a billion ounces of silver equivalent. I think it could get to 2 billion. And it was really low grade. I think it's like 0.4 gold and.
I forget how many grams of silver it is, but it was low-gain, but I'm sure it's profitable now. You know, with these prices where they are. And of course now you've got a billion ounces and the market cap was a hundred million, you know, and you got potentially two billion ounces of silver that you can probably sell for 20 billion a profit now and your market cap's a hundred. What am I missing here? The 200 bagger, okay.
Speaker 2 (17:27)
Yeah, I see the math.
Yeah, I'm with you. I'm following the math.
Speaker 1 (17:33)
Yeah,
and that's probably using today's prices over not the $50 or 60 or 70 I imagine and higher and higher. You don't have to pay big prices to get in this game. That's a levered game. It's a levered game to the upside all in your favor in my mind.
Speaker 2 (17:52)
How confident are you? ⁓ Just in price, because differing views make a market. I see people on Twitter all day long that say, ⁓ gold's got to come back to its 200-day moving average, and this kind of stuff.
Speaker 1 (18:07)
Well, I mean, I'm more confident in silver, okay, because I see the shortage, okay? There's 200 million in the shortage. I see no increase in production. I see taking long times to get approval for new mines. I see that only 25 % this are silver mines. Most of the silver is produced from non-silver mines. So, and I see these uses when I think of what's going on in the solid state batteries that they're gonna use in electric vehicles. And I think,
when they prove their merit, i.e. you can go 1,000 kilometers and it takes you 10 minutes to fill it, I think it's going to change the whole economics of the electric vehicle here and it's all metal, right? And it's lots of different metals. So the outlook for solar is just astounding when I think of all the solar applications, the battery applications, the battery storage application. We're going to be
Lots of people are be storing more electricity now. And then that takes up a lot of metals. So I'm quite excited about the fundamentals for silver and I can fall back on it used to trade at 15 to one. It is produced eight to one. Why was that at a hundred and one? There is no, and when you go to the COMEX, there's eight big banks short all the metal. Just screaming at you.
that there's something cookie going on here. And look how fast it's corrected. I think the silver ratio might be down to 90 to 1 now already. And if it gets to 50, we'll be down to whatever, 60 to 1 or something.
Speaker 2 (19:50)
So what's the best way for, mean, we'll get into the stocks a little bit in a second for just, you know, average regular people. Yeah.
Speaker 1 (19:59)
Look,
I have bought a lot of ETFs, okay? I bought the SIL. I like the SIL-J, the junior silver stocks. I own a lot of junior silver stocks, okay? But there's a lot of liquidity in SIL-J. Like I can buy $4 million worth in a day and I don't move the stock. If I want to go buy a junior mining stock, like forget it. Just put a bid on the floor for 10,000 shares and it'll be up 10%.
Yeah. You know, and everybody will be front running you, by the way. Yeah. That's the other funny thing about our markets. The stock markets don't function well. And that's why we've all gone to ETFs, because you can you can trade them in size. You don't move them around that much or you don't distort the pricing. So I tend to buy that. also own GDX. I own a nugget. That's the levered. ⁓ Just a second. got to get a take a call here and get them to get them off.
Speaker 2 (21:02)
20 % position you just built they're letting you know about.
Speaker 1 (21:07)
That's the levered gold index is nugget trades off of the GDX. So I like buying those things because they're tradable. You're going to distort price. Yes. Yes, I own it a lot. It's brought physical silver fund, brought silver equities. Those two are the ones that I own pretty big. Yes.
Speaker 2 (21:18)
you still on the sprot? Physical?
People say, know, that stuff's custodianed at the Royal Canadian Mint and all that kind of stuff. That doesn't bother you, it?
Speaker 1 (21:40)
I don't mind the Royal Canadian Mint at all, no. It's a good place. I'm not sure I have it there than a bank, by the way, whose job seemingly is to manipulate the price of silver and gold. Correct.
Speaker 2 (21:51)
But again, there's so many unallocated programs out there. are, you know, silver certificate programs out there. ⁓ Get your hands on the actual deal, right? Get physical and then store it in a place, you know, if you don't want to keep too much of it on hand, you got to find a nice safe place to store it too.
Speaker 1 (22:11)
⁓ I buy a lot of silver from Sprott money. And one of the things I don't think they do, they say they do, but they probably don't.
Speaker 2 (22:22)
I can't get a break. Can't you show them like a, do you have like an AARP, like a C A R P card or anything like that up there?
Speaker 1 (22:23)
Yeah.
Yeah, no, I don't. I don't think I get anything. But and by the way, when you buy a lot of silver, it's not easy to move because it's heavy, right? You know, very heavy quickly, right?
Speaker 2 (22:41)
All right. Let's I know everybody used to love when we'd visit every week and talk about, you know, certain mining shares and stuff like that. There's so many of them that are doing well. I don't even know where to start. I'll ask you about this one because this one I know this has come up the last couple of times we've spoken. We discussed free gold. That's been perking up as of late.
Speaker 1 (23:05)
Yeah,
I love free gold. I love the fact that in my mind they have 30 million ounces. OK, they said it was 22, but they said we'll get 72 % recovery. But they've already said they can get 90 % recovery using some other methods, so they shouldn't have cut it, take taking that 28 % of all the gold off. So I think they really have 30 million ounces. And that's before the recent drilling and the recent drilling, but very, very good. And there's no way that.
This is the biggest undeveloped deposit in the developed world. Undeveloped deposit in the developed world. So somebody is going to come by and do it. I actually went to a gold company as sort of a representative of FreeGold. I said, of course, they think they're trying to sell them the shares of FreeGold. And you know, I'd like to buy your mill.
Speaker 2 (23:42)
Gotcha.
Speaker 1 (24:00)
I'll buy your mill from you, okay? Because we can turn this ore body with that mill, we can turn that into a lot of money. ⁓ never thought of it that way. my, imagine if you could take a deposit that big and say now instantly we have a mill. We're going into production in a month sort of thing. Crazy. so that, no, that's great. It's great. It'll probably be end up at 40 million ounces someday, maybe higher.
Speaker 2 (24:07)
They didn't offer me their milk?
Speaker 1 (24:29)
not too far from now. They're spending a lot of time and trying to figure what's the best way of getting the gold out of the rock. And they'll figure that out. And it'll probably be north of 90 % recovery, which would be great. ⁓ So that's great. I went down to see a new found yesterday in Newfoundland.
Speaker 2 (24:47)
was gonna
ask you, that was my next thing on my list.
Speaker 1 (24:50)
They, I mean, I'm always stunned that it got as low as it got. I know they had huge problems with one short sellers to the regulator. Um, and that never should have happened. In fact, I'm meeting a guy today who's an expert in 43 one-on-ones. Cause we saw a 43 one-on-one in Canada here. The company was called Amex. They had a 43 one-on-one done and it came out at, I'm to use, it came out at X ounces. Okay. And then.
They said, well, we don't like the way that guy did it, you know, because he did it in the broad thing. We're bringing in all this low grade stuff around here. Let's just focus on the high grade stuff that we're going to mine. And he then, he did a little bit of drilling, but it only eight months later. He had a new 43 one-on-one and it had 170 % more ounces. So they were always there or they weren't properly counted. I'm going out to lunch with a geostatistical guy today, mining geostatistics. I'm going to explore that.
And I think that that is somewhat of a problem because all these guys want to be conservative. Right. know, everyone's conservative, conservative. Here's the funny part about the 43 101 probably comes out of half of what it should be. And then the streets as well, you know, they say they got two, but we're not going to count two. We'll only count a 75 % of that. And then, you know, the price of gold at 39, we're not going to use 3300. We're going to use 2200 or something.
Speaker 2 (25:56)
Yeah.
Speaker 1 (26:16)
And by the time you've finished and things disappeared and it's on economic, Yeah. Yeah. Because you've been cheated all the way through.
Speaker 2 (26:23)
Yeah. there, regarding Newfoundland, you know, certainly seems like there's a lot of metal there. Is there a economic factor like you talked about? Because prices.
Speaker 1 (26:35)
Sure. Look, I think they're going to try to do a bulk sample there. And when they do a bulk sample and the gold's right at service, they get the surface peeled away already. Yeah, it's going to be the easiest damn thing in the world. I hope they could get maybe pushing half an ounce. So if you could do a 50,000 ton bulk sample, you get 25,000 ounces. That's worth 75 million dollars. U.S. No, make that check that 85 million today. U.S.
That's about 120 Canadian. So they probably make 60 or $70 million with a little little bulk sample. Yeah, at surface. Yes. So I think they'll do that and they'll pay their way into building their own mill in time. It's 110 kilometer property. They've shown on the top 12 kilometers, it gets probably 12 different places. They found high grade goals. So it's there. There's no doubt it's going to be big.
Speaker 2 (27:13)
Yeah.
Speaker 1 (27:31)
They've had some teething problems here ⁓ convincing the market of what they have. I think we'll solve. have a new chairman, a new CEO. ⁓ Those are both guys that I've worked with before who I wanted to be there. it's going to and another director was appointed new Chad Williams, who runs Red Cloud. So I think we have a pretty good team there that's going to right the ship.
Speaker 2 (27:59)
your patient in that.
Speaker 1 (28:02)
Well, patience pays off. That's one of the great attributes you have to have in this stupid business. Everything takes so long. It takes 10 years, 15 years. Holy jumping.
Speaker 2 (28:12)
The new found room is the one that you're partying, you're still in there by yourself while the party's going on elsewhere, that old, that's where it used to have.
Speaker 1 (28:20)
Well, I've been lucky on some some stocks like I was a big owner of Discovery Silver and they ended up buying the Timmons property from Newmont. The stock was trading at like 60 cents. It's at 360 now. That all happened in six months. Yeah, I owned 20 % of it and I still own about 20 because I did participate in the issue. So that's been been a nice one. Donnie is the CEO. Oh yeah, yeah, yeah, yeah, yeah.
Speaker 2 (28:44)
Tony McCooch is an old friend.
imagine that lends a lot of confidence.
Speaker 1 (28:50)
There's
a lot, even Free Gold Ventures, I was reminded by Christina, who's the CEO, that when I first bought it in 2019, I paid six cents a share, Canadian. It's a buck 20. It's a 20 bagger. And I hope to get 10 more bags from here.
Speaker 2 (29:12)
Go.
Speaker 1 (29:15)
But so then you multiply the 20 times 10, it would be a 200 bagger if it worked out. That's how you make money.
Speaker 2 (29:21)
a lot of laps around the base.
For sure. ⁓ Let's just spend a little more time with Silver and then we'll get you out of here. Because I just think of all the conversation we've had over the years and you've just pounded the drum. The Silver is going to go higher. Silver is going to go higher. I want to own Silver. I want to own Silver miners. But Silver miners are hard to find because there aren't a lot of just primary Silver miners and that sort of thing. Where do you stand with some of those? You've got your eye on anything you want to tell us about?
Speaker 1 (29:53)
Well, Chris, my biggest one was discovery because of the Cordero property in Mexico. I own Chesapeake. It's got the Matate's property in Mexico. That's like a 16 million ounce equivalent except really a silver operation. It's not a mine yet. It's just an ore body. They might have some land issues down there. They say they have some technique for getting the gold out of the ore.
would save them instead of having to pay 3.6 billion for a plant, they could pay 368 million. Now it's unknown if that's factual or not, but that's what they're saying. I own Highcroft, of course, which is in Nevada, which also has like a billion ounces equivalent of silver on their way, I believe to 2 billion. It's low grade, but you know, at these kinds of silver prices, mean, the economics are improving every day.
Yeah. Yeah. We've had gold go up almost a hundred percent from two years ago and silver is now probably pushing up a hundred percent from two years ago, 18 to 37, that sort of thing. So you and these look like junky deposits, but you know, as I say, those are the best things to own when the price is going up. They're the ones who, when they throw the extra profit on the table, it will be a multiple increase in profitability.
because of the the great issues they had when the prices were continuing to be suppressed. But now they're not.
Speaker 2 (31:30)
Yeah, how do you measure, what's the best way for the average person out there to do their homework and try to find some of those?
Speaker 1 (31:38)
Okay. So if high profit was a hundred million and they had a billion, it cost you 10 cents an ounce.
Well, how do you get to buy silver at 10 cents an ounce, you know, when it's trading at $37. And by the way, free gold, you can probably buy the gold in the ground for $20 an ounce. And that's trading at $3,400. It's ridiculous. If you have a belief that these are great things to own, that they should trade at those low values per ounce. And who's to say that they're not going to find more? mean, free gold could double their resource in time.
I cropped is into some high grade silver down there that they've just found. And as the price goes up, by the way, the way they calculate the resource, you bring more tons in with lower grade, which therefore increases your ounces when you get to use a higher price for gold and silver. Maybe the billion ounces would go to a billion and a half just because the price is higher. And that stuff that you said was on economic.
is now economic. That you were going to throw away as waste, but you had to mine it, but you're going to throw it away. Now you're going to process it. So it's now an economic resource. Lots of good things can happen when prices go up.
Speaker 2 (33:00)
Well, in the end, that ultimately what we need? mean, do we need silver to break out to new all-time highs so that there is investment dollar or there are investors that come chasing?
Speaker 1 (33:12)
I don't even like to think about the real silver shortage we might have, the world might have. I don't even want to think about it. It's a problem. Things can stop without silver. You know, we've already eaten through 800 million ounces of above ground inventory. We don't have that much more to go. And I wouldn't be surprised that maybe even the governments nationalize the silver, not the mines. They shouldn't nationalize the mines because you need
entrepreneurs to run mines. But you know, they might say, okay, we got to take all the silver back. And just like the confiscated the gold, maybe they'll confiscate the silver. Who knows? I don't know. It's, but you know, we've, we're just running things in the ground economically here, these governments and their ridiculous fiscal policies. It's just ridiculous what we're doing. And then you got to pay for that stuff, right? There's so many burdens on people that they have to
fund this machine, this spending, my god, it's crazy, crazy out of control. ⁓
Speaker 2 (34:15)
We've
made that case for over a decade, you and I, just the debt that is... I mean, the US is going to run another $2 trillion of debt. Eric, just, in the month of May alone, the US added $316 billion. I did the math. That's $116,000 a second.
Speaker 1 (34:35)
Yeah, shocking. The big, big numbers. And it was way up from the previous year, right? It was up probably like 50 percent from the previous year for the month. Crazy. And that big, beautiful bill. I mean, when you start, you know, getting to the bottom line, that big, beautiful bill is going to cause a big, beautiful increase in the deficit to the audience. Probably two billion. Yeah.
Speaker 2 (34:43)
Just keep moving higher.
So the fundamentals remain ⁓ outside of just the economic and monetary fundamentals, outside of the physical fundamentals for the metal. Any last words of wisdom you'll pass on to everybody?
Speaker 1 (35:14)
I would say that the fundamentals are being allowed to manifest themselves now in the markets. Okay. You could see what's going on that all these people are buying all these institutions are buying gold. People are taking gold and silver off both the LBMA and the comics every day. ⁓ the outlooks, the outlook for more production is like almost nothing. Mine's of course, they do run out of
Speaker 2 (35:20)
Yeah.
Speaker 1 (35:42)
metal, right? So you always have some mines have to shut down because they've mined them out, but you better be looking to find more and get them in a process of developing it. So let's take free gold. mean, it might be 10 years before we get an ounce of free gold. You know, if you have to go through the whole process, build the whole goddamn thing takes a long time. So there's, it's not as though the cow, the cow or he's coming to the rescue here yet. So that, will all play into the hands of these.
smaller companies that have nice ore bodies, good pricing. The shares have a long runway in front of them in my mind.
Speaker 2 (36:21)
which gives us a lot more chance in the future to visit and ⁓ keep everybody up to date. It's always so much fun to talk to you, my old friend. I know we don't do it as frequently as we used to, but I know everybody sure values the time that you do spend bringing us up to date. like we always do, I just very much appreciate you taking the time to talk today.
Speaker 1 (36:42)
I feel like my exuberance is a little bit justified now. It's going pretty good.
Speaker 2 (36:45)
Yeah. You think?
We mentioned a couple of your stocks. There are people on Twitter ⁓ and that CEO.ca, that Canadian website, aren't there folks out there that try to keep track of everything that you're doing?
Speaker 1 (37:02)
Yeah, I think somebody on X does. I think it's called Sprout Folio.
Speaker 2 (37:07)
Are those mostly accurate, do you think?
Speaker 1 (37:11)
Yeah, I think they're accurate. know exactly what I own and they know exactly what those things have gone up by in a year or six months. So it's been been a reasonably good year so far.
Speaker 2 (37:20)
Hey,
you want to ⁓ find out more of what Eric owns and what he's looking at and what he's adding to and all that kind of stuff. There are sources out there that people have done this work for you. go for it. ⁓ The other thing I'd want to just remind everybody, it is still mid-June. We've still got more content coming this month. We'll wrap up. It's really, Eric, we didn't even talk about this. What an important month the next couple of days are going to be because we stand on the precipice of maybe the highest monthly close.
Speaker 1 (37:32)
Okay, man.
Speaker 2 (37:48)
of all times, maybe even the highest quarterly close of all time. The significance of that for price.
Speaker 1 (37:55)
I should have warned people of something. The calls that are in the money, calls that are in the money on SLV are monstrous. Yes. Now that's not a good thing. Yeah. That's not a good thing. Okay. Right. Because the guy on the other side of it is the banker. Okay. He normally he's going to work to get that thing down for June 30th. Okay. It's quarter end, but he's got so much money on the table that if this silver thing keeps going up,
He's gonna be in big trouble. I think we might have a hundred million shares of calls on SLV expiring on the 30th of the month. So it could be wild and crazy.
Speaker 2 (38:35)
There's some here this coming Friday, monthly New York Stock Exchange. Yeah, yeah. The end of the quarter and the end of the month in London, all that stuff. But again, boy, Eric, the significance of a new, gosh, if somehow it does, new quarterly all-time high, that would be significant, wouldn't it?
Speaker 1 (38:39)
Next break.
Oh, yeah. Well, it just it just shows like, in fact, in the case of silver, if it closes that I think something like thirty seven fifty eight. Yeah. Somebody pointed this out that it would be a quarterly record high. No, it would be forever record high close. Yes. For a month. Yeah. For a month. Because those two times it is 50. Of course, it went right down immediately because they worked it over. Right. Yeah. They didn't close at 50. The high close was thirty seven fifty eight, I think.
So we got a few days to see whether we can make it. Unfortunately, the last day of the month is going to be, could be chaotic.
Speaker 2 (39:30)
Unfortunately, if I can see this and you can see this.
Speaker 1 (39:35)
I don't do anything about it. I try to write it out. OK, I can't be moving stuff around like that. In fact, I'll try to probably try to be a buyer of silver on June 30th at three thirty in the afternoon if they're not going to down. Mm hmm. Yeah.
Speaker 2 (39:50)
It
happened this last month, very first trading day of the month of June.
Speaker 1 (39:54)
Yeah. Boom, shakanlaka.
Speaker 2 (39:56)
Yeah. All right, my old friend, always good to see you. Again, I want to remind everybody to thank Sprott Money for this content, to subscribe on whatever channel you've been watching this, because there's going to be more content coming still this month and next month and every month after that. You don't want to miss any of it. But for now, it's time to sign off. Eric, thank you so much. It's always so fun to visit with you.
Speaker 1 (40:17)
Great. Good to chat again and good luck to all our listeners.
Speaker 2 (40:21)
Yes, thank you. And from all of us at Sprout Money, SproutMoney.com, thanks for watching and we'll have more content for you still later this month.
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