Sprott believes in silver and gold as money, and he has little faith in paper currencies.
That explains his recent acquisition of a chain of currency exchange outlets, which he aims to gradually build into the safest kind of bank - one that makes no loans, and could eventually offer gold- and silver-backed checking accounts.
Leave it to Sprott to flip a long established business model on its head.
And now he's at it again.
Ever the investing activist, Sprott's latest move involves a "call to action" for silver producers, challenging a business practice typical of most - saving in cash.
Sprott has sent a letter to silver producers, suggesting that they reinvest some 25% of their earnings back into silver, rather than in cash at the bank.
On the surface, it doesn't look like such a dramatic step.
But after deeper analysis, it's clear such a move will accomplish two significant things for shareholders:
- It will heighten exposure to a commodity that the investor initially bought those shares for.
- And it will protect the investor from the risk of devaluing currencies the company would have held instead.
And as I keep digging, I realize that the implications go well beyond these two shareholder advantages.