Gold and Silver Decline yields a Victim

There is a devastating story that came down the Dow Jones wire feed today detailing the woes of Eric Sprott and the impact of the consequent severe market losses to his flagship fund. That fund is down more than 50% this year alone!


It should be required reading for all investors/traders.

http://online.wsj.com/home-page?mod=djnwires

The article goes on to state that Mr. Sprott had under management some $3billion in 2008. That has fallen to about $350 million due to a combination of both redemptions and losses.

Here is where the impact of these enormous losses makes itself evident. The investment company, Sprott Inc., is phasing him out of the investment decisions. By the end of next year he will no longer make the firm's investment decisions.

To add insult to injury, the CEO of the company, a Peter Grosskopf, stated that Sprott would be handling "chief cheerleader duties" in addition to remaining chairman.

Furthermore, the article stated that Sprott Inc,. had already added co-chief investment officers to all of the funds. They obviously knew where they were going with all this.

Lesson to be learned - LISTEN TO THE MARKET and ignore everything else!


http://online.wsj.com/home-page?mod=djnwires