In anticipation of the Sprott Vancouver Natural Resource Symposium from July 26th-29th, Sprott’s Thoughts is proud to present another exclusive interview with one of the conference’s Platinum Sponsors: Miles Franklin’s President, Andy Schectman.
Sprott Global Investment Executive Anthony Bevilaqua led the interview, which is a must hear for anyone who has purchased or is considering purchasing physical bullion.
As Mr. Schectman explained during the interview, the industry for physical dealers has been evolving, with new regulations, recent bankruptcies, along with new methods by which to gain exposure to precious metals.
Mr. Schectman spoke in detail about several high profile bankruptcies of physical bullion dealers in the last few years, and encourages all potential customers to get to know their dealers well. Ponzi-type schemes have surfaced with some companies in the space, and several individuals have already been placed in jail.
As an industry participant for 27 years, Mr. Schectman shares words of caution and food for thought for all participants in the space.
“If you own GLD,” he noted, “I implore you to read pages 6 through 12 of the prospectus entitled ‘Risk Factors’. Sit down with a cup of coffee. Read it [and], read it again. And read it a third time slowly because the things that are embedded in that prospectus are just absolutely terrible.”
He also notices that some major market participants, namely JPMorgan and Goldman Sachs, have been misdirecting market participants, silently accumulating physical metal as prices were pushed down. He estimates JPMorgan has amassed, “North of 600 million ounces of physical silver, if not higher. That’s the largest physical possession of silver the world has ever seen. And this has been done as the price of silver has gone down.”
As a final comment Andy notes, we are entering an unprecedented time to be participating in the precious metals space, whether you look to own physical, or a certificated product like the PHYS or PSLV.
The market is not behaving efficiently, he added. “Every single time the price gets smashed, someone comes in…and they gobble up everything there is to be found... You show me [any] other market where, when the price goes down precipitously on said market, it coincides with a complete and total absence of physical product of that thing.”
To listen to the full interview with Miles Franklin’s Andy Schectman: CLICK HERE
For more information on the Sprott Vancouver Natural Resource Symposium, please click here or contact your Sprott broker.
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About the 2016 Sprott Natural Resource Symposium in Vancouver:
How can you maximize your profits from the long awaited precious metals and natural resources bull market? One time tested way is by listening to respected experts in the industry at the 2016 Sprott Natural Resource Symposium in Vancouver, Canada, July 26-29. Our clients have consistently rated this conference as the finest investment conference they attend.
Join experts including Jim Rickards, John Embry, Doug Casey and Steve Sjuggerud. Join the “living legends” of mining, men who built billion dollar businesses, and are doing it again: Ross Beaty (who took Lumina Copper from $.50 to $140 in seven years); Robert Quartermain (who took Silver Standard from $.72 to $45in ten years); Rob McEwen; and Robert Friedland.
Meet and listen to fifteen of the most influential precious metals and natural resource oriented newsletter editors in the world. Meet over 50 public company exhibitors, who are allowed to exhibit because they are owned in Sprott managed accounts.
In the early stages of a resource bull market, can you afford not to go to the finest junior resource investing conference in the world?
For more information, please follow this link: Sprott Natural Resource Symposium
This information is for information purposes only and is not intended to be an offer or solicitation for the sale of any financial product or service or a recommendation or determination by Sprott Global Resource Investments Ltd. that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on the objectives of the investor, financial situation, investment horizon, and their particular needs. This information is not intended to provide financial, tax, legal, accounting or other professional advice since such advice always requires consideration of individual circumstances. The products discussed herein are not insured by the FDIC or any other governmental agency, are subject to risks, including a possible loss of the principal amount invested. Generally, natural resources investments are more volatile on a daily basis and have higher headline risk than other sectors as they tend to be more sensitive to economic data, political and regulatory events as well as underlying commodity prices. Natural resource investments are influenced by the price of underlying commodities like oil, gas, metals, coal, etc.; several of which trade on various exchanges and have price fluctuations based on short-term dynamics partly driven by demand/supply and nowadays also by investment flows. Natural resource investments tend to react more sensitively to global events and economic data than other sectors, whether it is a natural disaster like an earthquake, political upheaval in the Middle East or release of employment data in the U.S. Low priced securities can be very risky and may result in the loss of part or all of your investment. Because of significant volatility, large dealer spreads and very limited market liquidity, typically you will not be able to sell a low priced security immediately back to the dealer at the same price it sold the stock to you. In some cases, the stock may fall quickly in value. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as political, currency, economic and market risks. You should carefully consider whether trading in low priced and international securities is suitable for you in light of your circumstances and financial resources. Past performance is no guarantee of future returns. Sprott Global, entities that it controls, family, friends, employees, associates, and others may hold positions in the securities it recommends to clients, and may sell the same at any time.
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