Goldbug Sprott Bets On Continued Upside For Gold, Silver Amid Uncertainty

Canadian firm Sprott Asset Management hasn't been shy about betting on precious metals over the past several years. Mining stocks make up the bulk of Sprott's top equity holdings and the firm said it believes continued global uncertainty, perhaps including a double-dip recession, will further boost gold and silver prices.

With about $9 billion in assets under management, Sprott has performed well over the past couple of years as gold and silver have surged. Gold is currently trading near its record high and silver is pushing another 31-year high as the Gold and Silver Stocks Index is up 1.5% today, but Sprott sees more gains on the way for the metals.

The firm said gold prices could reach $1,800 an ounce this year and $2,000 an ounce early next year. Sprott is similarly bullish on silver, saying the white metal could reach $50 an ounce in the next 12 months as it makes its way to $100.

Of course, those scenarios would benefit mining companies such as Barrick Gold (NYSE: ABX - News), Eldorado Gold (NYSE: EGO - News), IAMGold (NYSE: IAG - News), Yamana Gold (NYSE: AUY - News) and Silver Wheaton (NYSE: SLW - News), all of which could be found among Sprott's top holdings at the end of 2010.