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Sprott Shifts from Gold Bullion to Gold Stocks

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"Production growth rates will be significantly higher in the junior stocks. They offer the best opportunity to build exposure."

BMO Capital Markets, Eric Sprott and David Baker

In many of the funds we manage at Sprott, we've transitioned out of gold bullion and into gold equities to better participate in the continuation of the trend indicated above. As long-time investors in this space, we can assure you that the production growth rates will be significantly higher in the junior stocks. They continue to trade at discounted valuations, and we believe they offer the best opportunity to build exposure. Margin expansion is the key metric for this industry, and the market is now acknowledging the miners' improvement in margin capture—which has occurred despite the increase in capital and operating costs. . .View full article

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