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More Sprott nonsense on gold stocks

Your author’s morning mailbox includes a missive from Sprott Asset Management (aka Sprott Ass Man), entitled “Sprott Podcast: The Value of Gold Equities” that starts with this jolly header:

And once you’re past the header and have avoided hitting the podcast button, “Financial Advisors and Individual Investors” are duly prompted by the mailer to contact The Sprott Team, including contact details for Ed Coyne, John H. Kinnane (the “H” makes him important, dontchaknow), Sergio Lujan, Matthew Harrison and Julia Hathaway to get “more information, or to answer your questions.”

So yes! I have questions! Dear Sprott Ass Man, why don’t you tell the truth about the performance of gold stocks? Because when compared to the metal itself over the last year…

…or two years…

…or five years…

…or ten years…

…or ever since the inception of GDX, as a matter of fact…

…gold stocks have serially underperformed the metal they produce. So what’s the point of any large insto or HNW individual paying money to a bunch of people to get advice on gold stocks, when the smart call is to buy GLD and do something better with their time and money? Your advice is a net waste of time, there’s no “tremendous opportunity” and the savvy investor knows there’s scant “potential to bring value” from exposure to a sub-sector run by self-important idiots who insert their over-sized egos, human foibles and financial frailty firmly between the investor and the metal. You Sprotties should do the investment community a favour and stop trying to justify your fat salaries with cherry-picked information on stocks that need five minutes’ worth of “deep dive” analysis to understand.

18 Comments

    “and have avoided hitting the podcast button”

    Aaaahahaha 😀

    Thank you for this entertaining site.

    And YES, you are absolutely right, the gold/silver stocks sector has been a disaster for soo many years I’ve stopped counting.

    The GATOs of this world does not help either…

    Reply

    Absolutely right. Sprott is either a fool, tool or a con. Doesn’t really matter now to him anyway as he’s gone senile.

    Reply

    The opportunity cost in gold stocks can be very expensive, I have learnt that the hard way. The stocks are in a bull market maybe two years out of ten but the bull markets are very addictive. I am very glad I scaled down in recent years and only hold two major holdings and some smaller lottery tickets. Risk reward for 2022 is great though, but I think Canadian oil mid caps are still equally attractive and more importantly in a confirmed bull market.

    Reply
    A Beaten Down Prospectors Cabin In The Woods The Deep Dark Woods of British Columbia 01/02/22 1:22 pm

    If i was in the business of financing mining companies (and getting juicy warrants) ….. i’d need a whole army of Sheeple to buy my cheap/discounted paper at retail prices …. Slick Rick didn’t become an Billionaire by giving his Juicy Warrants away to charity and showing the Sheeple they’d be alot better off just buying Gold Bullion – instead of taking his Juicy Warrants off his hands …..

    https://www.youtube.com/watch?v=9Ep_h8vxgEU

    Reply

    The metal of choice is behaving better today. Above that 4.40.

    Reply

    Then the same logic applies to why your paid newsletter and why you even invest personally.

    Reply

    This is a beauty.

    https://finance.yahoo.com/news/canada-silver-cobalt-intersects-high-124500705.html

    “Canada Silver Cobalt Intersects High-Grade Silver Up to 6,188.43 g/t Ag with a Gold Equivalent of 74.67 g/t Au at Castle East”

    Do you know how much gold there is in the ore? Zero. Gold eqv…….laugh or cry?

    Reply
    A Beaten Down Prospectors Cabin In The Woods The Deep Dark Woods of British Columbia 02/02/22 9:07 am

    The under-performance of Gold stocks is all Greta’s fault … the Gold stocks have been sabotaged I’s tells ya!!!!! ….

    https://youtu.be/n9YMHuwelN4?t=17

    Reply

      Aye. Immature adults need scapegoats for their mistakes, which makes one wonder why so many mining investors are fixated on Greta. Mirror mirror on the wall…

      Reply

    Gee, you fellas sound bitter.

    The miners will have their day – just watch!

    Reply
    Tim Coutts Alberta border crossing 02/02/22 4:32 pm

    I have rather enjoyed watching gold stocks lose their “gold premium”. These numbskulls use a 5% NAV in their financial models justifying their deposits development which is far from their cost of capital. Next up- watching royalty companies like Franco Nevada fall from grace with their sky high PE’s and absolutely no say in how their underlying assets operate.

    Reply

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