Silver Is A Potential 10-Bagger From Here

I attended a conference hosted by Eric Sprott in Toronto last week. Attendees got to pick Sprott Inc.’s brain trust, and there are some mighty big brains in that trust. We heard from Rick Rule, Peter Grosskopf and many others, including Eric Sprott himself. If you don’t know him, Mr. Sprott has been ferreting out the best stocks in Canada for decades.

One of the speakers was John Embry, whom I always enjoy. Mr. Embry is Chief Investment Strategist at Sprott Asset Management and Sprott Gold and Precious Minerals Fund. He’s spent 45 years studying gold and silver. And the way the metals have behaved for the past three years had him in quite a grumpy mood.

Mr. Embry says that he doesn’t know if he’s seen worse sentiment in precious metals and mining shares than there is right now.

But that, to him, spells opportunity.

“This is the finest opportunity I’ve seen in my career in this sector,” he said. “Fortunes will be made.”

He especially thinks fortunes will be made in silver miners. “Silver is a potential 10-bagger from here,” he said. Investors should be looking for a well-capitalized silver company that has “had the stuffing beaten out of it.”

One of the conference participants piped up to say that of the 45 silver stocks he follows, the average all-in cost was $22 per ounce. Mr. Embry agreed that recent prices of silver, under $18 per ounce, are simply “unsustainable.”

He added: “When this blows up, I expect to see gold and silver prices that are unimaginable to the average person today.

“But until that happens, I look like a dope,” he said with a smile.

“Patience, they say, is the mark of a great investor,” he added. “But boy, is my patience getting tried.”

Sprott’s New Mining Fund

One point of the conference was to highlight Sprott’s funds. In precious metals alone, the company has a physical gold fund, the Sprott Physical Gold Trust ETF (NYSE: PHYS); a physical silver fund, the Sprott Physical Silver Trust ETF (NYSE: PSLV); and a platinum and palladium fund, the Sprott Physical Platinum and Palladium Trust ETF (NYSE: SPPP). These are all fine, well-respected funds.

But what was news to me is that