The Future of Silver Price & New Found Gold | Eric Sprott

In this episode, legendary investor Eric Sprott shares his insights on the future of gold and silver prices and why he's more bullish than ever on precious metals.

Learn about New Found Gold's recent resource estimates and their potential value. Explore the silver price predictions, the possibility of a significant silver short squeeze, and silver's growing industrial demand driven by electric vehicle batteries and solar panels. You'll also learn about Eric's views on the gold versus silver ratio and his prediction of a potential return to the historical 15:1 ratio. Furthermore, discover undervalued gold and silver mining stocks in Canada and learn Eric's unique investment strategy and insights. Understand the impact of potential political turmoil and tariffs and how they may influence the precious metals sector. This interview is shared with permission from Crash Lab Studio.

Eric Sprott on New Found Gold And High-Grade Mining Potential

Using simple math to explain the economics, Eric Sprott started the discussion on New Found Gold’s latest press release: “Obviously, I would have imagined in my mind it could be substantially bigger than that,” he said, adding, “But I also know and I've spoken often about the whole 4311 process and how you know when you've got high-grade nuggety gold you really take it in the chops in terms of cutting and things like that. If you could make five grams, you'd be making—let's say on a $4,300 gold price—my God you'd be making well over $3,000 per ounce mined. And if you got a million ounces, that's $3 billion of pre-tax profit.”

Fosterville Lessons And Bulk Sample Hopes

Drawing parallels with Fosterville, Eric recounted, “I actually took every hole, multiplied them all out, calculated an average grade and an average width—and the average grade was 65 grams.”

As he emphasized the potential of New Found Gold, he added: “When I look at the results that New Found has—wow—they're just staggeringly phenomenal. I think most companies would beg to have a few holes like that. Whereas we probably have 200 holes like that.”

Patience In Precious Metals Investing

“Patience is something that I've learned from you,” said the host. Eric Sprott echoed the importance of staying the course in mining investments. “It doesn't bother me... I probably own 200 different mining companies. I buy them because okay they got X and I think it can go to 5X or 10X. We'll just wait and see if and when that happens.” Despite the downturn in New Found Gold’s price, Sprott wasn’t fazed. “My gain recently was in Discovery—that’s probably up three or four times what I just lost in New Found.”

Eric Sprott dismissed the obsession with raw ounce count. “I've always said it's about the grade. The profit margin on an open pit of seven grams is probably five grams. The profit margin on a one-gram ore body—maybe it's a half a gram. So this is ten times more profitable per ounce versus a 1G ore body.”

Undervalued Gold Stocks In A Bullish First Quarter

“It's not as though there aren't hundreds of gold stocks that are ridiculously undervalued today,” said Sprott. “I think the stock market's probably going to trade down here... and of course what's the best performing group in the first quarter? Oh, precious metals. Funny thing.” He further noted: “Nobody is investing in the stocks yet... It's nowhere close to bull market levels.”

Don Durrett, $4,000 Gold, And 25 Bagger Predictions

Referencing gold analyst Don Durrett, Sprott agreed with his bold calls: “Don Durrett says look, gold’s going to 4,000. At $4,000 this is a 25 bagger. Now where do you get a 25 bagger?” He emphasized: “At these prices, they’re almost management-proof... It’s hard to imagine you couldn’t make money.”

Silver To Outperform With Industrial Demand

Eric Sprott was clear on his silver thesis.“I think Silver's been manipulated for at least 50 years—same thing [as gold]. And now we’ve got these shorts on the COMEX for 850 million ounces. It’s almost obscene.” On the future demand side, he added, “Solar panels work like 40 or 50% better with silver instead of copper or something. It’s massive.” With the gold-to-silver ratio trading at 90:1, he noted: “It’s produced at 8:1 and traded at 15:1 when it was legitimate currency... At $3,000 gold, silver should go to $200.”

Sprott explained, describing his research routine, “I literally don’t rely on a huge network of advisors... I go through this stuff in detail.” He also heavily utilizes CEO.ca: “I can’t read it on 200 companies. But I’ll take my top five or ten and study them... You might in fact learn some of the negatives by going to a chat line.”

The Rise Of Manganese Monosulfate

Eric Sprott introduced a lesser-known investment angle: manganese monosulfate. “Nobody knows anything. I don’t know anything,” he admitted. “It looks like it’s going to be in the winning chemical formulation for batteries.” He owns substantial stakes in companies like Aftermath Silver and Manganese X Energy. “That’s the kind of thing that intrigues me—when the mathematical analysis says, ‘Oh my God, this can go a long way.’”

Political Climate And Mining’s Future In Canada

Sprott was candid about regulatory inefficiencies: “Everything takes too long. It’s a process that’s not conducive to being productive.” Yet he sees a change coming: “It’s good to see that some levels of government are finally saying... we should get a little more come in and support it.” Ending with a return to New Found Gold, Sprott reassured investors: “I would never consider selling it here. Look at the results—they keep coming out. So many parts of that North Appleton Fault part—oh my God it’s incredible.” “The Lab ground... 13 kilometers away—loaded with promise.”

The final message: “Be patient.”

Contact the Sprott Money team to learn more about gold and silver investment.