What Eric Sprott Is Investing In
Billionaire investor Eric Sprott knows what he’s doing when it comes to gold. After all, he built most of his wealth through investing in gold companies. Sprott started out as a research analyst at Meryll Lynch with his Bachelor’s degree from Carleton University. He became very successful in spotting up-and-coming precious metal companies, which is how he gained the majority of his wealth. By recognizing which companies would do well and investing in them, he has made returns of 1,000% and more. He is now one of the top gold and silver investors in the world, and has claimed to hold 90% of his assets in gold and silver.
In this article, you will learn about what gold and silver legend Sprott has been investing in. As of December 2020, we have looked at 29 of Eric Sprott’s investments—here is how they have performed.
Here is an overview of Eric Sprott’s most successful investments in the past two years.
- StrikePoint Gold (TSXV: SKP; OTC: STKXF): In June of 2020, Sprott purchased 23 million shares of StrikePoint Gold priced at $0.085 per share. As of December 18th, the share price was $0.25, for a return of 194%.
- Spanish Mountain (TSXV: SPA; OTC: SPAZF): Also in June 2020, Sprott bought 20 million shares of Spanish Mountain for $0.10 a share. Shortly after, he bought another 16.6 million shares at $0.30. Subsequently, the stock peaked at a high of $0.77 and as of its closing price on December 18th, is trading at $0.38 with insiders still buying.
- Karora (KRR): Another big investment for Sprott, who purchased 26.5 million shares of Karora in July at $0.51 a share. By December 18, the share price closed at $3.88, an increase of 660%.
- Mountain Boy Minerals (MTB): In June 2020, Sprott acquired 8 million shares of MTB at $0.25 per share. Shortly after, the stock reached a high of $0.69 and by December 18, 2020 closed at $0.385 for a total gain of 54%.
- Kootenay Silver (KTN): Sprott purchased 31.25 million shares of Kootenay silver in August 2019 at $0.16 a share. By the close on December 18th, 2020, the share price was $0.385, for a gain of 130%.
- Pure Gold (PGM): In May of 2020, Sprott bought 9,868,421 shares of PGM with a share price of $1.52 per share. The shares have increased by 70% since, closing at $2.59 on December 18th, 2020.
- Aftermath Silver (AAG): Sprott purchased 14,879,796 shares of Aftermath Silver at $0.20 a share in XYZ. By December 18th, 2020, the share price closed at $1.33, for a gain of 565%.
- Kore Gold (KORE): In August of 2019, Sprott purchased 10,000,000 shares at $0.30 per share. The stock increased to $1.51 on the closing of December 18th, 2020 for a return of 403%.
Eric Sprott invested millions of dollars in companies from the US/Canada, Mexico, and Brazil. Both gold and silver investments resulted in great returns. Although some of his investments did not pan out, such as buying shares of Vizsla Resources, the winners have more than made up for the losers. His highest return to-date is within Karora, returning a staggering 660%.
Overall, Sprott’s track-record combined with his capital allocation demonstrates he’s an expert at picking winning companies and with a little bit of luck, seems to have better market timing than most. Sprott has mentioned that he focuses on trying to hit “home-runs” when it comes to investing—he puts money into companies that he expects will generate returns in excess 500% or more. Of course, with investing losses are inevitable, but by sticking to his investment thesis of only investing in these “home-run” companies, he manages to offset the losses with significant gains.