Sii Senor
But That’s Still the Wrong Question
Everyone keeps asking the same question everytime something goes up:
“Can it go higher?”
As Sprott Asset Management (Ticker: SII) would say:
“Si señor”
Yes, technically anything can go higher.
But honestly, that’s not the question that matters, and it’s definitely not the question I’m asking myself when I look at a stock.
People ask it because they want reassurance.
They want someone holding their hand saying, “You’re fine, don’t worry, Daddy Market won’t hurt you.”
But that’s not investing — that’s therapy.
Investing is something Benjamin Graham already defined better than anyone:
“An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return.”
No excitement.
No guessing.
No fortune-telling.
Just reality.
That’s really what I’m trying to do each time I write:
observe reality — the actual cycle we’re in — not the fantasy version people hope we’re in.
Because when your mind is framed correctly…
when you see things as they really are…
and when you stop negotiating with the universe…
money tends to follow.
Not because you predicted something.
But because you behaved logically inside the environment you were given.
Sprott (SII): Why I Even Bother Talking About It
Sprott isn’t a boring wealth manager selling balanced funds to retirees.
They are basically the toll operator for the entire precious-metals world:
Gold
Silver
Uranium
Critical minerals
Etc.
Whenever these go up, Sprott’s ETFs go up, and their fees go up.
Simple.
So yeah, a 45 P/E for an asset manager looks wild… until you realize they’ve built themselves into the middle of a commodity super-cycle.
Brookfield doesn’t trade at 45x.
BlackRock doesn’t.
Sprott does — because Sprott isn’t playing the same game.
5% Yield, No Attention, Empty Ballrooms THAT Was the Opportunity
Everyone loves Sprott now.
Every chart looks amazing now.
Every story sounds obvious now.
But back in 2018–2019?
Nobody cared.
It was paying a 5% dividend.
Gold was half-dead.
Uranium was forgotten.
Mining CEOs were practically bribing people to attend their presentations.
That’s when I bought it.
Not because I’m a genius.
Not because I had a grand thesis.
Just because I follow a rule I learned from Molycorp:
Buy when no one else wants it.
Forget you own it.
When it doubles, sell half.
It’s boring.
It’s simple.
It works.
I sold half when it doubled, and it freed my mind to let the rest run.
And if you don’t know what Molycorp is, it was the former MP Materials company before bankruptcy.
Many high flying companies unfortunately cannot sustain their upward momentum so its better to understand this going into the venture.
This Still Isn’t a Bubble in Commodities
I say this because I don’t see the signs.
There’s no mania.
No flood of retail.
No CNBC Gold Countdown Clock.
Until your Uber driver tells you silver juniors are the future and your dentist asks if you prefer royalties or explorers,
we’re not in a bubble.
This feels like early innings.
Confusion, not euphoria.
It all ties into future expectations
Buffett vs. Silicon Valley
Here’s where it gets special. Commodities move with the economy and also uncertainty with your purchase power, via fiat money.
Right now we’re living through a real dialectic — two incredibly smart camps with two opposite views of the same world.
Warren Buffett
Sitting on $150+ billion in cash.
Not timing the market, but also absolutely seeing something.
Valuations too high?
Credit tightening?
Geopolitics?
Liquidity?
Something.
Then you have Silicon Valley
Sprinting into AI as if the future is guaranteed exponential.
Synthetic labor.
Productivity revolutions.
The belief that everything will be rewritten by GPUs.
Two groups of brilliant people.
Two completely different conclusions.
That’s literally what a dialectic is.
And when you get a real dialectic — not noise, not Twitter arguments — a synthesis eventually forms.
A third path.
The Federal Reserve hinted at that today.
A world where Buffett isn’t wrong, and Silicon Valley isn’t wrong…
but neither is completely right, either.
I’ll write more on that soon, because understanding the synthesis might be the key to the next decade.
So why the commercial break?
To show you the confusion out there
Not that SII “can go higher.”
Not that this is the top or bottom.
Not that I’m calling anything.
What I’m saying is to avoid confusion:
observe the world as it is,
understand the cycle you’re standing in,
use logic,
not emotion,
and follow principles,
not adrenaline.
Sprott is basically the Tether of precious metals — the barometer of the entire ecosystem of hard assets.
And that barometer today is showing:
More gold.
More silver.
More upside.
And not a bubble in sight.
That’s why I wrote this.
That’s why I’m watching.
And that’s why I think we’re still early.
For my great paid readership, I talk about the easiest and laziest way to earn income from Silver miners related to covered calls and earn as of this writing about 18% on the year.
Seize the Day
Eric
