“Why ‘Canadian Silver’ Could Pay 100% MORE than Ordinary Silver Over the Next Few Years…” (PS, there’s “Canadian Gold”, too)

Sniffing out the "Canadian Silver Program" details from Matt Badiali's S&A Resource Report

By Travis Johnson, Stock Gumshoe, September 24, 2012

Huh? Are the Canadian Maple Leaf silver coins going to suddenly become twice as valuable as the American Eagle silver coins? No, don’t worry, it’s not that simple and silver is still fungible, an ounce is an ounce is an ounce (well, a troy ounce, anyway).

So what’s the idea of “Canadian silver” being somehow better than “ordinary silver?” Well, it’s a teaser pitch from Matt Badiali for his S&A Resource Report newsletter, and he tells us that this kind of silver has been dramatically more profitable than the types of silver investment you might be more familiar with, like silver miners or silver coins … let’s sample a bit of the ad to give you an idea what he’s talking about:

“Why ‘Canadian Silver’ Could Pay 100% MORE than Ordinary Silver Over the Next Few Years…

“…Even if the Price of Silver Doesn’t Go Up a Single Cent

“Some of the Best Money Managers in the World – including several Billionaire Hedge Fund Managers – have already Invested Millions in this Lucrative Silver Opportunity….

“…this opportunity is something you can participate in via the stock market.

“And the people behind it have agreements in place that allow them to acquire silver at the ridiculously low price of just $4 per ounce on average… which they can then resell at the current, much higher rates (an ounce of silver currently costs more than $30)!”

Ah, OK — so there are a bunch of savvy Gumshoe readers who figured this one out based on that last paragraph … but not everyone is steeped in silver stocks, so don’t spoil it for the rest of the group, we need to check the rest of the clues first!

OK, fine, we’ll give you a hint — rhymes with “Buster Keaton.”

More clues from Matt Badiali?

“Since 2005, an investment in the thriving “Canadian Silver Program” has soared 1,008%, while the price of silver bullion has lagged far behind increasing by only 375%.

“And it gets even better, because unlike any other silver investment I’m aware of, this “Canadian Silver Program” generates consistent income. As an equity shareholder, you’ll receive frequent payouts based on the price of silver and other factors….”

Lovely — income is always good.

And then we get the spiel about all the rich, smart people who already own buckets of this stock (OK, fine, yes — I gave it away early, it’s a stock, not a secret kind of silver):

“… some of the richest investors in the world are getting in on this opportunity early….

“Billionaire precious metals investor Eric Sprott, also known as ‘the Warren Buffet of Canada,’ calls silver the investment of this decade. And he has invested millions of dollars in this unique ‘Canadian Silver Program.’

“John Van Eck has also caught on to the incredible bargain and explosive upside this money-making silver opportunity offers. Van Eck is the founder of Van Eck Global with $35 billion under management and currently holds over half a billion dollars of ‘Canadian Silver Program’ stock.

“Other large investors include the Oppenheimer Funds, JP Morgan, Vanguard and Fidelity. Each has invested $15 million or more in this lucrative ‘Canadian Silver Program.’

“And the ‘Canadian Silver Program’ is one of Presidential candidate and Congressman Ron Paul’s top holdings and best performing investments with a reported return of as much as 1,135% over the past 10 years.”

Leaving aside for a moment that Eric Sprott is so close to being the polar opposite of Warren Buffett when it comes to investing style (so much so that Sprott has called out Buffett, as if for a cage match fight, several times … pretty much whenever Buffett says anything bad about gold or silver), he is certainly an asset manager whose moves make people notice, and he has been very vocal over the past year or two about his expectations that silver will be where the huge money is made in the next big run. And no, most people don’t call him the “Warren Buffett of Canada” — that term has been bandied about regarding Eric Sprott a few times, sure, but Bruce Flatt at Brookfield and Prem Watsa at Fairfax Financial are much more often (and more reasonably, I’d argue) blessed with the “Buffett of the North” sobriquet. I dream of someday being called the “Warren Buffett of the I-91 Corridor of West