sprott resource corp (not to be confused with sprott asset management, which is a completely different company) announced that it had purchased nearly 1 million ounces of silver bullion this quarter, as well as 40,000 ounces of gold.

TORONTO, Dec. 15 /CNW/ - (TSX:SCP - News) - Sprott Resource Corp. ("SRC") announced today that it has acquired during this quarter 40,475 ounces of gold bullion and 852,478 ounces of silver bullion. The balance of SRC's working capital is in short-term government of Canada treasury bills.

"We intend to continue to look for attractive investment opportunities to allocate our capital while working on building accretive businesses," said Kevin Bambrough, President and CEO of SRC. "In the interim, we feel it is prudent to allocate a portion of our working capital into gold and silver bullion. We may allocate a larger portion into gold and silver, or other physical commodities, in the future depending on market conditions."

Kevin Bambrough continued: "Current yields on short-term government debt are approaching, and in certain cases have reached, zero percent. This is occurring while governments are assuming liabilities and issuing debt at an unprecedented rate. We believe this situation is not sustainable over the longer-term and that global creditors will begin to hoard hard assets, in particular gold and silver, rather than purchase government debt that offers little nominal yield and is subject to a loss in real value as currencies are debased."