#65 Eric Sprott | Gold, Silver & Markets: Powerful Insights from The Man, The Myth, The Legend

Summary

In this insightful conversation, Eric and Denny explore the intricacies of mining investments, particularly in emerging sectors like manganese monosulfate, a key component in electric vehicle batteries. They discuss the challenges and opportunities within the resource industry, emphasizing the need for patience and research-driven decisions. Eric shares his approach to stocks, highlighting the importance of identifying untapped opportunities and the potential for growth in precious metals like gold and silver, especially during times of political and economic uncertainty. The conversation also touches on the evolving dynamics of Canada's resource industry and the promising future of companies like New Found Gold.

Takeaways

• 😀 Eric emphasizes the importance of independent research when investing in mining stocks, particularly checking out platforms like ceo.ca for community insights.
• 😀 He prefers investing in stocks without analyst coverage, as it suggests untapped potential and less competition from mainstream investors.
• 😀 Manganese monosulfate is an emerging interest for Eric, particularly in electric vehicle battery technologies, where it plays a key role in solid-state batteries.
• 😀 The current political turmoil, especially around tariffs and trade issues, is viewed as a major challenge, but Eric doesn't see it impacting gold stocks in the short term.
• 😀 Despite the potential negative effects of political instability, Eric believes that gold and silver will continue to perform well as safe haven assets in tough times.
• 😀 Eric sees a promising future for manganese, especially with companies like Aftermath and Manganese X, which hold significant shares in this growing market.
• 😀 He finds silver as an interesting kicker in some of his manganese investments, with the potential for significant upside if manganese prices rise.
• 😀 Eric suggests that the Canadian resource industry is slowly gaining more support from the government, recognizing its importance for economic development and job creation.
• 😀 One of the major barriers to faster mining development in Canada is the long regulatory approval process, which can hinder productivity and project timelines.
• 😀 On New Found Gold, Eric is optimistic despite stock price fluctuations, advising investors to be patient, as the resource's high-grade gold potential is immense, and the long-term prospects remain strong.

Q & A

What is the significance of CEO.ca in the speaker's investment process?

CEO.ca serves as a valuable platform for the speaker to gather insights about mining companies, particularly those that are not yet covered by brokers. It allows for direct feedback from the community and offers a place to verify or refine investment assumptions, especially when discovering new companies.

Why does the speaker prefer stocks that are not covered by brokers?

The speaker prefers stocks with no broker coverage because these stocks may still hold untapped potential. If brokers haven't started covering a stock, it suggests that the company hasn't been fully recognized or analyzed yet, which can offer opportunities for early investors.

What role does manganese monosulfate play in the electric vehicle industry?

Manganese monosulfate is a key component in the production of electric vehicle batteries, particularly in solid-state battery technology. The speaker believes that it is crucial for developing next-generation batteries, such as those used by companies like BYD and Samsung, making it an area of growing importance.

What is the speaker’s view on the political turmoil and its impact on the stock market?

The speaker sees the political turmoil and tariffs as negative factors that will hurt the stock market. However, they believe that gold and silver stocks could perform well in such an environment, as investors seek safe havens in precious metals amid broader market instability.

How does the speaker think gold and silver will perform in the future?

The speaker believes that as the stock market faces challenges, gold and silver will continue to rise. They cite expert Michael Oliver, who has predicted significant rallies in these precious metals, with gold potentially reaching $8,000 and silver possibly hitting a couple of hundred dollars.

What is the speaker’s perspective on Canada’s resource industry?

The speaker believes Canada’s resource industry is undervalued and often misunderstood. While some political and environmental challenges hinder the sector, there is increasing recognition that mining is critical to Canada's economic future, particularly as the global demand for resources grows.

What does the speaker suggest could help shorten the time from discovery to production in mining?

The speaker suggests that reducing bureaucratic delays and improving efficiency within government processes could shorten the time it takes to bring mining projects from discovery to production. The speaker also notes the need for a more supportive attitude from governmental bodies toward the mining industry.

What is the speaker's opinion on New Found Gold’s resource?

The speaker expresses a positive view of New Found Gold, highlighting the large volumes of rock that encapsulate valuable ore. While the higher-grade material is an outlier, the overall resource shows great potential. The speaker believes in the long-term success of the project, especially as drilling continues to expand the known resource.

Why does the speaker view New Found Gold’s high-grade ore as both a challenge and an opportunity?

The speaker acknowledges that high-grade ore deposits in large footprints like New Found Gold’s pose challenges in terms of drilling and resource estimation. However, they see this as an opportunity because the deposit could extend deeper, and the high-grade nature of the ore presents significant potential for future development.

What advice does the speaker give to investors currently holding New Found Gold shares?

The speaker advises investors to be patient with their New Found Gold shares. Despite short-term fluctuations, they believe the company has immense long-term potential. The speaker suggests that the company's exploration and resource confirmation will ultimately prove the value of the deposit.