Eric Sprott on Silver
Billionaire Investor | Founder of Sprott Inc. | Creator of PSLV
Eric Sprott has put his money where his mouth is like few others, personally investing hundreds of millions in silver. As the creator of PSLV and a major stakeholder in silver mining companies, he has become one of the most influential voices in precious metals.
Who Is Eric Sprott?
Eric Sprott is a Canadian billionaire investor and the founder of Sprott Inc., one of the largest precious metals investment firms in the world. His personal fortune, estimated in the billions, is heavily concentrated in gold and silver investments.
Sprott began his career as a research analyst before founding Sprott Asset Management in 2001. His early bets on gold during the 2000s bull market generated legendary returns and established him as one of the most successful resource investors of his generation.
What sets Sprott apart from many commentators is the scale of his personal investment. He has put hundreds of millions of his own money into silver - through physical holdings, PSLV, and mining companies. When Eric Sprott talks about silver, he is talking about his largest personal bet.
Eric Sprott Quick Facts
- Canadian billionaire - net worth from precious metals investing
- Founder of Sprott Inc. and Sprott Asset Management
- Creator of PSLV (Sprott Physical Silver Trust)
- Major shareholder in First Majestic Silver and other miners
- Hundreds of millions personally invested in silver
The PSLV Creation Story
PSLV - the Sprott Physical Silver Trust - was born out of Sprott's concerns about existing silver investment vehicles. He did not trust that products like SLV (iShares Silver Trust) were fully backed by physical silver, and he wanted to create something better.
The Problem with SLV
Sprott and other analysts pointed to concerning features of SLV: the ability to substitute cash for silver in certain circumstances, custody arrangements with banks that may have conflicting interests, and prospectus language that some interpreted as allowing "paper" silver exposure.
"I wanted a silver vehicle that I could trust. One that actually owns silver, publishes bar lists, gets independent audits, and lets investors take delivery. PSLV does all of that."
How PSLV Works
- Fully Allocated: Every ounce of silver is allocated to the trust and stored in the Royal Canadian Mint.
- Published Bar Lists: Complete lists of silver bars with serial numbers are publicly available.
- Independent Audits: Regular third-party audits verify that the silver exists as claimed.
- Physical Redemption: Large shareholders can redeem shares for actual physical silver delivery.
PSLV and the Silver Squeeze
PSLV became a key tool for the silver squeeze movement. Because PSLV actually takes physical delivery of silver when shares are purchased, it drains real metal from the market - unlike paper derivatives that create no physical demand.
Eric Sprott's Silver Investments
Sprott's silver investments span multiple categories, from physical bullion to mining stocks to streaming companies. His portfolio represents one of the largest individual bets on silver in the world.
PSLV (Physical Silver Trust)
Founded and funded the Sprott Physical Silver Trust, now holding billions in physical silver bullion.
Silver Mining Companies
Major investor in silver mining companies including First Majestic Silver, MAG Silver, and many others.
Silver Streaming & Royalties
Investments in silver streaming companies that provide financing to miners in exchange for future silver production.
Physical Silver Holdings
Significant personal holdings of physical silver bullion stored in secure vaults.
Key Quotes & Predictions
"I have bet more on silver than gold. I believe silver has more upside potential because it is smaller, more volatile, and more suppressed."
On silver vs gold
"The physical silver market is incredibly tight. When investment demand picks up, there simply is not enough silver to go around."
On silver supply
"PSLV exists because I wanted an honest silver vehicle. One that actually owns silver, gets audited, and lets you take delivery if you want."
On PSLV creation
"We are in the early stages of a massive wealth transfer. Those who own real assets - gold, silver, commodities - will be the beneficiaries."
On the wealth transfer
Eric Sprott's Current Views
Sprott remains extremely bullish on silver, backing his views with ongoing investments:
On Silver vs Gold
While bullish on both metals, Sprott has publicly stated he is more heavily weighted toward silver. He believes silver's smaller market size and industrial demand create more explosive upside potential.
On Market Manipulation
Sprott has been vocal about silver price manipulation, noting the disconnect between physical market tightness and paper prices. He sees PSLV as a way for investors to participate in physical demand rather than paper trading.
On Monetary Policy
Sprott views silver (and gold) as protection against monetary debasement. With unprecedented currency creation by central banks, he believes precious metals will be major beneficiaries of the coming loss of confidence in fiat currencies.
Sprott's Core Message
Frequently Asked Questions
Who is Eric Sprott?
Eric Sprott is a Canadian billionaire investor and founder of Sprott Inc. He is one of the largest individual investors in precious metals and mining companies, having personally invested hundreds of millions of dollars in silver.
What is PSLV?
PSLV (Sprott Physical Silver Trust) is an exchange-traded trust that holds physical silver bullion. Unlike SLV, PSLV is fully allocated, regularly audited, and allows investors to redeem shares for physical silver delivery.
Why did Eric Sprott create PSLV?
Sprott created PSLV because he was concerned that existing silver ETFs like SLV were not fully backed by physical silver. PSLV was designed to give investors true physical silver exposure with the ability to take delivery.
What does Eric Sprott predict for silver?
Sprott is extremely bullish on silver, believing it is significantly undervalued. He has predicted silver could dramatically outperform gold and has backed this view with hundreds of millions in personal investments.
Disclaimer: We are not affiliated with Eric Sprott or Sprott Inc. The information presented is for educational purposes only and represents our interpretation of publicly available statements. Always conduct your own research and consult with a financial advisor before making investment decisions.
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