In January 2026, 81-year-old Canadian billionaire Eric Sprott visited mines in Australia and New Zealand, just as silver prices hit a record 100 USD per ounce. Despite this, he remained unfazed. "Gold and silver stocks are undervalued. I believe metal prices will increase significantly. Silver could easily reach 200 USD, even 300 USD. Gold could hit 10,000 USD," he stated.

Days later, silver prices dropped by one-third to 76 USD, and gold fell below 5,000 USD, currently hovering around 4,500 USD. Sprott was undeterred, viewing such fluctuations as normal amidst global conflicts, driving investors to seek safer havens. He believes these movements reflect the market’s search for direction amid global instability.

While a safe haven may be one reason new investors turn to gold and silver, Sprott points to another cause for the recent surge in metal prices: uncontrolled government spending. "I think we all understand that governments have acted irresponsibly with the financial system. They print money and overspend, from Canada, the US, the UK, Japan, to any other country," he said.

This argument has been a staple among analysts for decades. The theory suggests that excessive spending erodes consumer confidence in currency, prompting many to shift towards tangible assets like precious metals, which are traditionally seen as stores of value.

Sprott’s conviction led him not only to accumulate physical gold and silver but also to profit by acquiring stakes in gold and silver mining companies. His deep investment knowledge allows him to target smaller, lesser-known companies with assets he considers undervalued. "I look at the mine reserves. I am not a geologist; I know nothing about rocks, but I understand the numbers. If the reward is substantial, I can accept the risk," he explained.

Eric Sprott at an event in Las Vegas, Nevada in September 2012. Photo: Reuters

This strategy has proven successful. Sprott currently holds stakes in 120 mining companies. According to Forbes, his net worth is 3,1 billion USD, nearly four times what it was at the beginning of 2025, though it has decreased from a peak of 4,6 billion USD earlier this year. Sprott revealed that 98% of his wealth comes from gold and silver.

Sprott’s journey to becoming one of the world’s most optimistic precious metals investors began in Ottawa, Canada, a city known for its rich mineral deposits. His father, a civil servant, traded stocks in his free time, sparking Sprott’s early interest in investing.

In 1980, he used his savings to trade on the Toronto Stock Exchange. He later founded his own brokerage firm, Sprott Securities.

In 2000, as the dot-com bubble expanded, Sprott grew concerned about a market collapse. He sold his stocks and invested in precious metals. Soon after, the stock market plummeted by 80%.

Sprott subsequently sold the brokerage arm of Sprott Securities, retaining the asset management division and directing capital into mining companies.

Due to uncertainties regarding costs and mineral quality, undeveloped mines are often valued lower than refined metals, even with geological forecasts. Sprott, drawing from personal experience, sees this as an advantage. He told Forbes that he continues to evaluate metrics such as convertible reserves, minimum ore grade, and mine operations to weigh investment costs against market prices.

His largest investment is a 1,3 billion USD stake in Hycroft Mining Holding (US), an example of his undervalued asset strategy. Sprott was drawn to the vast scale of the flagship gold and silver mine in Northern Nevada, even though when he invested in 2019, the mine was inactive and Hycroft Mining was deep in debt.

Sprott injected over 360 million USD into Hycroft and helped the company secure loans, gaining a one percent stake and the right to 1,5% of future net mining revenue. After several volatile years, Hycroft’s stock began to rise. Sprott continued to invest further. Since early 2025, the stock has surged by nearly 1,500%, despite the company only recently beginning operations and not yet producing any ounces of gold or silver.

His second largest investment is in Discovery Silver Corporation (Canada). In May 2019, Discovery and Levon Resources merged into an exploration company focused on silver, with projects in Mexico and Puerto Rico. Later that year, Sprott invested about 6 million USD for a nearly 25% stake in the new entity. With this capital, Discovery began concentrating on the large-scale Cordero mine in Chihuahua (Mexico), which they estimate contains nearly one million tons of gold, silver, lead, and zinc.

Gold prices, which were just over 2,000 USD per ounce in early 2024, approached 5,600 USD by late January 2026, marking a 180% increase in two years. Silver prices followed a similar trajectory, rising from around 30 USD to 100 USD in just two years.

Forty years of investing have allowed Sprott to maintain his composure, regardless of market volatility. When asked how he finds the next billion-dollar investment, the billionaire simply stated: "The numbers brought me here. Remember that. You don't need to be a geologist."

Ha Thu (according to Forbes, Yahoo Finance)