Are Schiff and Sprott Still Bullish on Precious Metals?
Gold (NYSE:GLD) and silver (NYSE:SLV) rallied on Wednesday after a previous day selloff. Peter Schiff, CEO of Europacific, recently gave an interview that included his views on silver. Even though Peter Schiff has been a long time advocate of precious metals, he provides insight to the current market and even a price target for gold and silver. Eric Sprott is a well known fund manager that calls silver “the investment of the decade.” Sprott backs up his statement by putting his money where his mouth his.
In response to the strength seen in gold and silver despite the seasonality effect, Schiff said, ” We’ve held some key lows, especially in silver, where silver held up and never got down to $30. That used to be the resistance before it broke up and moved up to $50. $50 is now the over head resistance and we will take that out before the end of the year. I think eventually silver north of $200 with gold over $5,000 makes a lot of sense.” Silver and gold at these levels would represent a 25 gold to silver ratio. Currently, this ratio is about 40. Although history doesn’t necessarily dictate the future, Eric Sprott believes the gold to silver ratio will return closer to its historical average of 16.
Eric Sprott continues to invest in silver, even after its historic rise. Yesterday, Sprott Physical Gold Trust (NYSE:PHYS), a trust created to invest and hold substantially all of its assets in physical gold bullion and managed by Sprott Asset Management LP, announced that it has completed its offering of 19 Million units at $14 per unit, for gross proceeds of $266 million. It is estimated that the offering will result in 5 tonnes of physical gold being removed from the market.
Gold and silver both closed higher and look poised to retest key targets of $1600 and $40, respectively. Investors looking for gold and silver ETFs should check out The Top 8 Exchange Traded Funds for Your Precious Metals List.
Investors looking to hold metal miners in their portfolio may want to consider gold plays such as AngloGold (NYSE:AU), Newmont Mining (NYSE:NEM), or Market Vectors Jr Gold Miners ETF (NYSE:GDXJ). Hot silver miners include First Majestic Silver (NYSE:AG), Endeavour Silver (AMEX:EXK), and Global X Silver Miners ETF (NYSE:SIL).
For more analysis on our support levels and ranges for gold and silver, consider a free 14-day trial to our acclaimed Gold & Silver Investment Newsletter.
Disclosure: Long AGQ.