Veteran Bear’s Gold and Silver Miners

Chidem Kurdas

Eric Sprott, the Canadian who made a fortune from bearish trades in recent years, isn’t just holding precious metals—that goes without saying, since he manages funds that specialize in physical gold and silver. In addition he has built a distinctive portfolio of mining companies.

Mr. Sprott argues that the demand for gold remains strong, in part because China is buying more of the commodity, with Hong Kong selling increasing amounts to mainland China. He remains bearish on economies and has expressed doubts about the Greek debt resolution. He says investors, including institutions, want gold and silver. Last month he raised $340 million for a new silver fund.

Overall he manages around $10 billion in hedge and mutual fund assets, with mostly resource and precious metal-focused investment strategies.

But not for him Anglogold Ashanti, the South African gold producer that attracted many hedge funds. His small stake in Anglogold is a negligible fraction of the portfolio.

Instead he holds a large position in Barrick Gold, headquartered in Toronto, his own hometown. Also Silver Wheaton based in Vancouver, not a mining company but a buyer and seller of the metal.

Other favorites are Argentian Extorre Gold Mines and Mexico’s Timmins Gold and First Majestic Silver Corp. He seems to like Fortuna Silver Mines, with operations in Peru and Mexico. In the US, he’s gone for Allied Nevada—which looks for gold guess where.

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