Eric Sprott Lashes Out Against The "Tyranny Of A Rigged Paper Monopoly Over Silver Price Discovery"

Tyler Durden's picture

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frippy's picture

Eric the Read.

Libertarians for Prosperity's picture

And yet there exists another silver market, which as we’ve shown, is not very connected to the physical realm at all...

Yes.  Correct. 

One only needs to look at Sprott's very own PSLV to see his "paper" units routinely trading at a ~10%-20% premium to NAV.

So, yes, there is quite a disconnect from paper to physical.

Errrr....wait....WTF? I thought the paper was suppose to be worth less than the physical...


LudwigVon's picture

One only needs to look at Sprott's PSLV to see his units, where investors have long term security that they are redeemable for real Silver unlike every other instrument available, trading above the suppresed paper price, more inline with real world Silver prices.

So, yes, there is quite a disconnect from paper to physical.

anarchitect's picture

Cute but typically superficial. Some want paper, some what physical. Physical carries a premium, at least in storage fees, so some prefer paper. But many of them want to know that they can get physical if necessary. And of all the paper silver products, PSLV is the only one that can definitely be converted to physical in a crunch. Thus it carries a premium.

SRV - ES339's picture

Interesting view, but how to explain The Sprott Gold Trust... it's also one of the few that you can convert to physical, but it sells at a very low premium (< 2%).

akak's picture

Perhaps it might have something to do with the fact that it is ~45 times easier to take possession of, and store, a given dollar figure in gold than it is in physical silver?

I'm not being facetious here ---- really, might that have something to do with it?

Libertarians for Prosperity's picture

No.  That's just dumb, as always. 

The more you post, the more dumbdumb you get. 



akak's picture

It would seem that with the apparent absence of tmosley from this forum, you have decided to haunt and harass me as the most obvious anti-troll defender of the truth here.  if so, bring it on, you dishonest and disingenuous bastard.

akak's picture

Maybe one day, WilliamtheBastard/RedneckRepugnicant/TexasShitslinger, you might actually start being a useful and honest participant in this forum.

Maybe ---- but I strongly doubt it.

midtowng's picture

No one wants our gold. The American public has no use for gold least that is what the latest Yahoo headline just said.

midtowng's picture

Oh, this is rich. The article is about gold COLORED coins. Not actual gold, like the headline implies.

narapoiddyslexia's picture

And no one wants them because they're useless. I tried to carry them around. Forget it. How many one dollar bills does anyone carry around? Very few, is my bet. So why would anyone want to increase the weight in their pocket needlessly? Why didn't they have a $2 or a $5 coin? That might be worth carrying around, but dollars are worth so little its not worth the energy to carry the extra weight.

AgShaman's picture

I find them very useful....and order boxes of them direct from the us mint.

Andrew Jackson and TJ are my faves....Sacajawea's are also nice.

They come in handy when using them for tips....after buying a drink or a beer.

I carry rolls and rolls of them in my backpack when I'm surfing the mountain....the extra weight helps me go faster....then when I'm in the lodge having a bite to eat and a microbrew at lunchtime...I'll unload a bunch of 'em with the barkeep (those chicks dig em...and they trade their fiats for them everyday).

Many inquire as to why I go to the trouble using them. I tell them it's my secret way of "flipping the bird" to my fellow Americans....some ask me to elaborate...some don't.

To each his own. Perhaps they help the treasury more than the FED...and using them circulates "better money"....I just don't know.

I'll continue to get boxes of them....and throw them around at the grocers and at the ski resorts. When some knuckledragger passes you on the you were standing still...maybe it was me (loaded down with $1 dinar coins in my backpack)

Yes...I junked you

urbanelf's picture

Discover card gives you 1% cash back.  Not all stores will take Discover card, but the US Mint will let you buy the $1 coins with Discover.

Can't wait 'til the Calvin Coolidge comes out!

narapoiddyslexia's picture

That's hilarious. Really. So, the Mint finally made a special copper alloy coin just for skiers. Do you suppose that was their intent? Is it possible they were hoping for a slightly broader market?

AgShaman's picture

"Clueless Wanker"....or predictable "Plunker"

I'm thinkin both....since it's obvious you lack the intellect to pick up on the lesson plan put forth. Too consumed with sand extraction from yer vagina I guess.

Carry on with your Rockefellian "I'm much too special to carry dollars" pomposity....

Continue to use "really" in a sentence by itself....someone here may be convinced you've got the brain stem to support your ego.

There....I junked you again

Banjo's picture

Soon to be the equivalent of your new nickel.

Enjoy the inflation.

hbjork1's picture

Dollar Tokens. 

Vending machines nation wide would have to be overhauled and then there is the risk of a $2.00 coin and another overhaul. 

Pennies cost more to make than they are worth.  Reminds me of a trip to Spain in 1970 (back when a few silver quarters and half dollars were still in circulation).  I felt sorry for the people nursing their small coins (their cent was ~ 0.1 US cent).  Now old Abe is in the same boat.  He could disappear and the public wouldn't care.  He is not worth bending over to pick up. 

It might be possible to issue a new coinage worth a factor of 10 more that could, through compositional changes be made to work in existing machines with relatively little modification.  To keep the public happy, John Wayne would go on the penny and Ronald Regan on the quarter.  But who would go on the dollar?  Marilyn Monroe would be my personal choice but the American public would probably prefer Elvis. 

Silver Shield's picture

We get cash4gold, China gets Gold for Cash...

Eric does a tremndous job of providing a forensic accounting of the drive by silver shooting in May. Watch how quite the media and their minions are this time when we blow through $50 silver.

Read the "best article written in 10 years on silver"...

petaloka's picture

This is not GOLD but gold dollar coins i.e. Sacajawea dollars and the like.

GetZeeGold's picture


Go Eric go!!!!


BrianOFlanagan's picture

this from the guys that claimed Ebay represented the best indicator of the "real" price of physical silver.

Caveat reader

Turd Ferguson's picture

And they are correct in that assertion. Using the fraudulent, manipulative Comex as your basis only shows your naivete.

Idiot Savant's picture

I thought you were going to quit posting if your "$1600.00 gold by June" call didn't pan out.

MFL8240's picture

In a free country it would have.

ForWhomTheTollBuilds's picture

I'm personally glad Turd's call failed to come true by a sliver thin margin.  That way, he is proved to have been correct in all practical respects, but I still get to listen to his detractors shriek in helpless fury that Turd is a fraud.


Bay of Pigs's picture

ZH's self proclaimed gold and silver "expert" OFlanagan talking trash. COMEX is fine and the SEC and CFTC are doing their job. LOL.   

Now he's hammering Eric Sprott and calling Turd out in one fell swoop?

Ha ha.....nice work Brian. Just "trying to help" again?


tmosley's picture

Uhhh, it did, idiot.  They have been delivering SLV paper since December.  Every month.  Now their silver is being drained out at unprecedented rates, and is at an all time low, and you want to say that everything is fine and dandy, just like it has been for decades?

Are you stupid or something?

BrianOFlanagan's picture

spoken like a true turdite who has earned a spot on the lemming leaderboard.  Good luck.

tmosley's picture

Awww, did you try posting under a pseudonym, and get butthurt when no-one gave you "hat tips"?

Awww, poor baby.  And clearly you are a baby, as you are totally unable to back up your whiney accusations.

BrianOFlanagan's picture

Every post I make anywhere is done in my real name.  I do not hide behind pseudonyms.  I welcome debate and alternative points of view and that's why I sometimes post here.  Good luck to you.


Pladizow's picture

To everyone:

Do not argue with the trolls - what do you care what they think - just accumulate PMs and laugh all the way in the opposite direction of the bank.

lawrence1's picture

Right, dont even respond to trolls... just encourages them.

jmcadg's picture

From someone else who doesn't hide behind pseudonyms (ie these are my initials),

If you want to join the People's Front of JP Morgue, you have to really hate the SIlver Hat Brigade. 

Brian: I do! 

Oh yeah, how much? 
Brian: A lot! 

Right, you're in. 


DeadFred's picture

Other than for a few trolls this post is preaching to the choir. My one problem with it is the lack of emphasis on the fact that the short sellers <banks> own the government and therefore have a legal monopoly on the use of force. They can bust into your house if they hear a toilet flush but try doing the reverse and see what happens. When the comex goes under or is about to go under what will the government do to save their owners? Maybe open Fort Knox (assuming there anything there), maybe make it a crime to own PMs, whatever, but bet on the fact they will take steps to shore up the banks from this 'grave threat to our economy'.

narapoiddyslexia's picture

Faith in the fiat money system is coming to an end. The Chinese, Russians, Indians, Brazilians, and South Africans are taking concrete steps to execute trade on a non-dollar basis. China just concluded a trade treaty with Japan and South Korea. The repercussions of this will not play out in one day, or one week, or even one year. But it will be a revolution. Listen to this -

Cognitive Dissonance's picture

Strange comments coming from someone who, based upon the types of articles you comment on here at ZH for nearly two years, is obsessed with Gold. A quick review of the type of ZH articles you comment on shows me the word "Gold" in at least 50% of the titles.

And it even seems you have changed your tune a bit. Over a year ago you thought there might be an effort afoot to discredit Gold, but now you don't? So how far will "they" go to discredit Gold Brian? Call Gold bad names, but not try to suppress it? Talk but no actual action? What do you mean by "discredit" Brian?

So if you think people are trying to discredit PMs the only question Brian is how far do you think they will go to discredit PM. Your position is illogical. If they are willing to discredit they are willing to manipulate IF they have the power to do so. And they do.


by BrianOFlanagan
on Mon, 05/17/2010 - 21:44

I'm not sure I'd agree that it's an organized conspiracy, but point 1 makes sense - individuals that have profited from the corrupt financial system feel threatened by gold and thus make every effort to discredit it.  

RockyRacoon's picture

Heads up.   Both Gainsville and APMEX are having huge silver sales over the 4th weekend into Monday.   Might wanna hang on for some better deals if you are planning to buy.   These guys are on the pulse and must see some lower prices ahead.   It ain't coincidence.


akak's picture

Very decent of you to notify us of these sales, my good garbage raider!

lawrence1's picture

Thanks Turd for your website, I read it often, although I have stopped trading anything paper. Keep it up.

RockyRacoon's picture

All hail the Turd!  Glad to see you here.   Looking forward to your input.

tmosley's picture

Right, because markets are bullshit.  We all know that prices have to be set behind closed doors by central planners.  Anyone who thinks otherwise is "naive".

SRV - ES339's picture

ROTFLMFAO... so you think the Crimex is an indicator of the "real" price of silver?

Latest US mint Ag issue is at a 75% premium to the fantasy Crimex price, with purchase limits to try to keep some in stock 'til they can get more. Caveat reader indead... as in readers of BrianOFs thoughts on silver!

XenoFrog's picture

In all fairness, that 75% premium was for the fancy proof silver eagles, not the regular ones you actually want to accumulate.

Greeny's picture

Metals are just seasonably weak. Wait for end of the summer

and we'll see some parabolic moves.

Yardfarmer's picture

indeed. despite all of the endless verbiage, analysis, and speculation, when it comes down to it, the golden rule applies. in other words, he who owns the gold rules. when the parabolic moves in Au/Ag occur at the end of August (just like last year), the "price", along with that of crude will still be in a state of manipulation. it simply behooves the oligarchs and kleptocrats to further enrich themselves with a move upwards. they make theirs on the way up and the way down. there is no inherent "virtue", "justice", or "truth" involved here. everyone but a blind fool knows that you follow the money, and that just happens to be gold, silver and commodities as fiat paper burns in the bankster's hyper-inflationary blast furnaces.