Eric Sprott: Silver Will Become a Currency Again

With the Greek crisis nearing a climax, The Doc spoke with Eric Sprott of Sprott Asset Management this week to discuss the Euro debt crisis, silver fundamentals, and the recent PSLV follow-on offering.

When asked about his recent efforts to convince silver mining companies to save in silver rather than cash or treasuries Eric responded:

I think we have a bit of a voice in the silver market, and the reason for the letter was just the simple analysis that the paper traders were determining the price…and why should you physical silver producers let that happen?

And that was the primary thing- would you guys please think about what’s happening in your silver market! Plus the fact that it got bombed last year, and are you just going to sit back and lose $25 an ounce that you might otherwise be making, or are you ready to take a stand here? The other very easy argument for me, is when you have your money in a bank, you get no return. You essentially have no return. In fact I think it was expressed very well by the gentleman that runs UC Resources that you actually get a negative return at the end of the year because inflation’s higher than the return you’re getting on your money! I happen to be of the view that having money in the bank is a dangerous thing!

And you know they keep bailing out the banks all the time such as the recent G6 announcement that we’ll give unlimited loans to banks: well, they had to give unlimited loans to banks, because there were some banks that were on the brink! That tells you that it’s risky having money in a bank! So not only do you have to accept the risk, you get a negative return!

Why don’t you believe in your own product that also has been a currency and also will become a currency?

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via SilverDoctors: Eric Sprott: Silver Will Become a Currency Again.

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