“Gold Stocks Are the Cheapest I’ve Ever Seen”

Posted by Casey Research with Charles Oliver

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Dear Readers,

BIG GOLD’s Jeff Clark recently caught up with Charles Oliver, the senior portfolio manager of the Sprott Gold and Precious Minerals Fund (SPR003, Series A; unavailable in the US). He made a splash with a gold-price prediction four years ago that didn’t quite come true, with consequences that have created a new legend for the man, as you can see below.

That amusing episode now behind us, we have to say that we like and respect Charles, so Jeff interviewed him to learn what he sees coming next. Charles also discussed the lag in gold stocks and what may turn them around, the possibility of companies hedging their production, why he’s bullish on silver, and more.

I’m actually with Jeff now, in Florida at our Recovery Reality Check Summit, where we are both doing our best to add value for participants as well as keep the next issues of BIG GOLD and Casey International Speculator on track for publication this week. The speakers are doing a fantastic job – Doug was as feisty and funny as ever, Rick Rule as precise and eloquent as ever, and David Stockman was highly informative, persuasive, and entertaining… a great show all around, so far. If you were not able make it, I do encourage you to order the recordings of the sessions.


Louis James

Sprott Fund Manager: “Gold Stocks Are the Cheapest I’ve Ever Seen”

Jeff Clark: Charles, I understand you lost a bet predicting the gold price.

Charles Oliver: Yes, I did. I made a bet four years ago at one of my first meetings with Sprott clients. Gold was trading just over $920 an ounce, and I told them it was going to $2,000 in the next four years and that if I was wrong, I would shave the hair off my head. Well, we got close, but a bet is a bet, so on April 16 my hair was shaved on BNN.

Jeff: Very honorable, holding up your end of the deal. I understand you raised money for charity, too.

Charles: Yes, as part of the event I put together a charity program, and we’ve raised about a million dollars so far. I personally donated $100,000, because if I’m going to ask everybody in the mining industry who’s benefited from this rise in gold and silver prices to give, then I have to put up my own money, too. We actually have four different charities – a quarter each to World Vision, Care Canada, UNICEF, and Terry Fox, which people can read about at the link.

Jeff: So how about going on record and making another bet where gold will be four years from now?

Charles: [chuckles] You know, I’ve just lost all my hair, and I’m thinking before I make any new bets I’ll wait until gold actually gets to $2,000. I’m optimistic that will happen this year, though.

Jeff: Gold has been stuck in a trading range since last September. In your view, what’s kept the price from advancing?


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