* Hedge fund boss says more dollars flows favor silver
* Wary of investing in base metal due to uncertain economy
TORONTO, March 8 (Reuters) – Silver is likely to keep outperforming gold thanks to strong dollar flows, though both are still good investments compared with copper and other base metals, according to Eric Sprott, the hedge-fund manager and Canadian investment guru.
“I watch where the money goes and the money’s going into silver. There’s as much money going into silver as into gold in dollar terms,” said Sprott in an interview with Reuters.
Sprott, who heads Toronto-based hedge-fund Sprott Asset Management, said it is important to note that silver available to buy is relatively scarce in terms of value, and that bodes well for further gains.
“There is 75 times more dollars worth of gold to buy than silver, but the money’s going in one to one,” says Sprott, while speaking on the sidelines of an investor event held in conjunction with the annual PDAC mining convention in Toronto.
Silver stocks in COMEX warehouses are near their lowest since April 2006, when the metal traded at $5 an ounce. Demand for silver coins has also picked up, especially in the United States, where it was at record levels early this year.
“My biggest thing is silver — I think silver is going to go up a lot here. Gold’s right in there, but not as good as silver,” said Sprott, following a presentation to hundreds of investors in a resplendent ballroom at Toronto’s Royal York Hotel.
Continue reading »
Tags: COMEX, Commodities, Economy, Eric Sprott, Global News, Gold, Silver