So Much For The Sprott Silver Scare: "Every Dollar From PSLV Sales Was Reinvested In Silver Equities"

Tyler Durden's picture

Earlier we reported that Sprott had sold $35 million worth of PSLV, which caused many to panic that the precious metals guru had indicated the market top in the market. Well, as it turns out and as he just told the Globe and Mail “We haven’t lost our enthusiasm for silver.” Quite the opposite... 

So why the sales? “Every dollar of money that was raised by selling shares of [the Trust]... was reinvested in silver or silver equities,” he said.

While silver’s price per ounce has soared in recent months, “silver shares have not done as well, which is almost shocking in a way, and it looked like there were opportunities in either getting some premium on PSLV shares and buying silver or buying silver equities.” The sales were made at an average price of about $21, up from their $10 IPO price about six months ago.

But that doesn’t mean Mr. Sprott is abandoning his trust. He says he still holds around 25 per cent of the total trust units between his funds and his charitable foundation.

As for future public offerings following the IPO, he says he is sticking to a promise he has already made. “There will not be an offering that negatively impacts the premium on the PSLV,” he said.

Sprott is not the first to observe the harsh push on silver equities. As we noted some time ago, metals are outperforming equities by a ridiculous margin, which is why anyone who has to have a connection with capital markets (like an advisor) would be foolish not to take advantage of this relative mispricing. Which by the way is massive. As the chart below shows, while SILV is up 42% YTD, the SIL ETF is actually negative for the year! All Sprott is doing is taking profits from the upper line and reinvesting them in the lower one, once again proving that relative value compressiona/divergence trades are the only ones that make any remote sense under a centrally planned regime.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
lolmao500's picture

Stupid people selling their silver... Eh tards, have the fundamentals changed? NO? Then don't sell your silver, TARDS.

Cdad's picture

I highly doubt people are selling their silver.  Rather, algo's are arbitraging their futures contracts and pumping that liquidity into leveraged silver trades [miners and royalty companies].  But, you know, if you see long lines of guys with canvas sacks standing in line at the pawn shop, please let me know.


Ahmeexnal's picture

Word on the street is that the Rothschilds have lost patience with Dimon&Blythe.

Those two idiots were entrusted with a clear, simple mandate: to keep silver price supressed and to do it discreetly.

Due to their sheer stupidity and incompetence, they have managed to lower silver price from 10 to nearly 50 USD over the last few months, and in the process have blown wide open the possibility of a COMEX default and criminal charges against several banking outlets....and the jewel on the crown will be silver ripping away completely taking down the Roths with it.

It's not price discovery, it is VALUE discovery coming in a few days.

Dimon and Blythe? They won't face jail.

No....they will have a funeral at sea courtesy of the Roths.

SWCroaker's picture

Now THAT would be worth dancing in the streets in celebration for.

Hearst's picture

Anyone watching Silver?  At 10pm central time the price is up and down a dollar in just a minute or two.  Will constant dollar (or more) swings become the new norm?

tmosley's picture

Chinese markets aren't closed tonight, bitchez.

Ahmeexnal's picture

The margin hike game is up.  

Like trying to stop an 18 wheeler with cardboard boxes.

MathMan and his gay overlords are toast.


redpill's picture

Hey Blythe, BOHICA baby!  Silver stallion rides again!

tiger7905's picture

These comments from Sprott shouldn't be a surprise, he made comments in mid-march that he'd consider moving from silver bullion to silver equities at some point.

TwoShortPlanks's picture

Hey all, listen-in. I went into the Perth Mint today, did a big buy. In Silver they had only two 100oz bars left and everything else is...WAIT FOR IT...ancient 10oz bars of various sizes! LOL

Last week there was a line-up out the door and their entire inventory of Silver was cleaned-out.

I has gone from nuying lovely shiney bars to ancient cruddy things that look more like Lead Sinkers.

This shit's going down boys and girls, this shit is going down really soon.


Here's what I wrote earlier about these crashes.

Hi All, here's my take on what's happening.

If Banks and Financial entities realise that the USD is now doomed, who cares how much debt you have in USD, true???

So, if they buy huge short positions first, dropping the price of Gold and Silver, they can buy the artificial dip and take delivery of physical. Do a series of these events and you have dealt yourself back in the game.

Of course, there's no reason to come good on your short positions in USDs because they're worthless anyway.

You just need to con the CME into increasing the Margin Call, that's all.

Scam, scam, scam...BUT it really does confirm that physical is going to explode soon, very soon.

NotSpartacus's picture

I've had a similar experience this week.  I was in Dubai Saturday and bought the last 7 kilo bars in stock from the biggest silver dealer in the city.  Several people came in right behind me and were turned away.  In the US where my Dad buys for me, the dealer there who always had ample inventory, yesterday only had some pre-64 junk and one 100 oz. bar that was just sold to him... It's on baby, in a big way!!

DavidPierre's picture

First the story was "Osama did it."

Then the story was "he's unfindable and
he taunts us from his hidden cave."

Now the story is "We got him!" and Obama
called in the strike personally.

Why they are playing this card now is
open to question.

Could it have something to do with the
badly botched birth certificate forgery? 

In the meantime, the mostly untold
9/11 story. One you probably haven't

It's hair raising in its implications and
100% nailed down accurate.

Core Of Corruption, Volume 1

In The Shadows

{Full Film}

i-dog's picture

Thanks for that link. Excellent documentary ... absolutely full of documents, interviews, news footage and MSM documentary extracts at all steps along the way.

Anyone who watches it and then comes away believing that the ragheads acted alone needs to be euthanised ... as a danger to themselves and to any who depend on them for any decisions.

FunkyMonkeyBoy's picture

Sorry Turd, when you posted the following on your blog you, respectfully, lost a lot of respect in my opinion:

"First of all and most importantly, as an American citizen, I am pleased that Osama bin Laden is dead. I am extraordinarily proud of the special forces and intelligence teams that carried out the mission that led to his demise. I am hopeful that this will bring some measure of closure for the families which lost loved ones nearly 10 years ago. Lastly, I beg you, please do not take this as an opportunity to pollute this blog with comments regarding 9/11 conspiracies and assorted CIA plots. If you strongly believe in that stuff, please vent somewhere else."

- How you can easily see the manipulation and corruption in the financial and commodities markets which lead to a lifetime of hardships, slavery and ultimately unnecessary death of citizens. And yet you don't seem to be able to make the 'leap' that your government would kill 3000 citizens on 9/11 to benefit themselves and their agenda... frankly i don't know.

Spalding_Smailes's picture

A teenage suicide bomber wearing a school uniform killed at least 31 cadetsand wounded 40 more at an army training camp in northwest Pakistan today, officials said.

bomber's uniform came from a nearby school, police official Abdullah Khan told the BBC. The disguise allowed the terrorist to bypass security checks at the heavily guarded Punjab Regiment Center in Mardan. He detonated his explosives at 8 a.m., as recruits were doing physical training on the parade ground.

A suicide bombing at the same training ground killed 35 people in 2006. Pakistan's GEO TV said it was the deadliest suicide attack in the country since Dec. 25, when a woman with a 
bomb strapped under her burqa killed 43 people at a U.N. food distribution point in the tribal district of Bajaur.

Khan told The Associated Press that an examination of body parts at the scene revealed that the bomber was a teenage boy -- an increasingly common phenomenon in Pakistan. In 2009, the Pakistani military released footage taken inside a Taliban training camp showing 
children as young as 11 being taught to become suicide bombers. Once trained, the young, brainwashed bombers are sold to other Taliban leaders for as much as $12,000.

akak's picture

And I made some nice cookies today too.

EscapeKey's picture

Which type? Choc chip?

akak's picture

Oatmeal raisin --- with silver sprinkles.


Yits and the Yimrum's picture

silver is down and Smales mail is back like flies on dung

I know, you predicted this huge drop in siver about $20's ago



Spalding_Smailes's picture

Irish Independent, 16 July 2010:

At the crucial September 25, 2008, meeting, Mr Neary insisted Anglo was not insolvent and that it had enough assets to cover its debts, new documents being investigated by the Dail spending watchdog reveal. 

"There is no evidence to suggest Anglo is insolvent on a going-concern basis. It is simply unable to continue on a current basis from a liquidity point of view," he told the Taoiseach


Irish Times, 14 Oct 2008:

"Ireland's banks are solvent and will be able to offset potential losses on property loans with their better-performing loans" 

akak's picture

The word 'eczema' comes from Greek words, that mean 'to boil over'. Dermatitis’ comes from the Greek word for skin – and both terms refer to exactly the same skin condition. In some languages, dermatitis and "eczema" are synonymous, while in other languages "dermatitis" implies an acute condition and "eczema" a chronic one.[5] The two conditions are often classified together.

Spalding_Smailes's picture



One who sucks the baloney pony - aka chows wang, gives head, polishes helmet, ect. ..... You are a fucking polesmoker !


tmosley's picture

Talking about yourself again, lot lizard?

akak's picture

You are a fucking polesmoker !

Yes, indeed I am!

And yours was the cheesiest, foulist, most pathetically shriveled little pole that I have ever smoked.

Next time, for God's sake, take a break from your four-day stints in your troll chair, hop in the shower and pop some Viagra, will ya?

Malachi Constant's picture

Looks like with the Polesmoker post (paste from Urbandictionary, IMO) he was keeping up the thread of perfectly unrelated remarks without pointing fingers at anyone.

akak's picture

Just as one would expect from a troll AI program.

clymer's picture

blah. Blech. MSM leaking into ZH via the condit of SS. 9-11 was an inside job. Learn it. Know it. Live it.


There is nothing into this charade for you, SS, besides the end of your republic.



ReeferMac's picture

There's the problem people!!!!


"The disguise allowed the terrorist to bypass security checks at the heavily guarded Punjab Regiment Center in Mardan"


We force our children to have their naked picture taken and be groped by high school drop outs in order to ensure security in our country, and when was the last time we had a bomb go off over here? We don't need the Armed Forces over in the Middle East to secure peace, we need to send them the TSA!

barkingbill's picture

very good point. turd is great, but unfortunately he leans to the right in politics, he is smart but not perfect. i wish him well in coming out of the left right bullshit. maybe he hasnt seen all the info we have. good luck turd in your search for the truth. 

Freddie's picture

Well on the left-right BS - ZH is filled with Dems who voted for you know who and they still defend him.

Malachi Constant's picture

They voted for Voldemort? 8[

Bringin It's picture

Stop promoting the partisan charade.  Don't play that game.  And no I did not vote for Obummer from out of space.

RafterManFMJ's picture

+1. Although I will vote for Oblammer next time to get this wheezing train accelerating toward the tornadic shitstorm. Lets.Get.It.Over.With.

Hephasteus's picture

Oh no he's figured out our simple mindedness. Now we will have to run onto facebook and join the other simple minded cretins with an inability to shut the fuck up.

I'm just like totally polarized like fucking sunglasses now.

clymer's picture

really, Turd.. Watch bld. 7 a few more times.



Texas Gunslinger's picture

To those 9-11 conspiracy theorists:

If you truly think the American government orchestrated the 9-11 terrorist attacks, and all you do is sit at home and post comments on the internet about it, then you are truly the most pathetic, spineless individuals on the planet. 

People in Egypt riot over the price of cotton and corn.  You guys think the government flew jumbo jets into our sky scrapers, and all you can do is hunch over a keyboard and spew your nonsense.  If you truly believe the garbage you post, and this is the extent of your action, then you are as worthless as the govenment you criticize. 

I've only been here a week or so, but I've never seen a greater collection of kooks in my entire life. This really is the most bitter, paranoid, hate-filled corner of the internet I've ever experienced.  I find the Zero Hedge articles fascinating, but I find the comments mostly despicable and full of evil.  Everyone seems so miserable.

Jesus will handle your soul.  Until then, you may want a psychologist to handle your head.

akak's picture


To the extent that posters here are bitter, unhappy, angry or miserable, it is probably in almost every case as a result of them waking up to and realizing the full measure to which they have been lied to, violated, cheated, swindled, persecuted and impoverished by an out-of-control, sociopathic elite who increasingly skillfully use the empty rhetoric of "patriotism", "sacrifice", and "defense" as finely-honed tools to further expand and further cement their enslavement of the average citizen to their centralized, one-world agenda.

What do YOU believe?


PS:  This forum, like any other, has its own unique character and "culture", part of that culture being an essentially unlimited tolerance for often crude and irreverent language, as well as a very libertarian, free-thinking questioning of all dogmas, creeds, orthodoxies and shibboleths --- and yes, at times that can include christianity too. If you find this shocking or uncomfortable, please do not take it as an insult in any way if I suggest that this forum might be unsuited to you, your personality or your beliefs.

OldPhart's picture

TexSlinger:  Zero Hedge may be a little too rough for your tastes.  There are more suitable websites for your sensibilities.

tickhound's picture

Dear Jesus,

Please send TG to Egypt with plenty of Haines t-shirts and corn nuts.


ps He told me the jumbo jets crashed into skyscrapers because he loves you.  Amen

roninmd's picture

Don't you find it interesting that Osama was killed on Beltane?  It's a pagan ritual that requires a human sacrifice.  Whoever ordered Obama to kill Osama on May Day.. was a pagan not a Christian.  If you beleive that Jesus rose from the dead.  What makes you think other people can't follow thier own religious rituals.

Beltane is a northern euro fertility ritual thing. The same Europeans that setup NATO, aka the bilderberg. It's interesting that the Royal wedding was setup around the same time frame. Osama as a Beltane sacrifice was apparently America's wedding fertility gift to the British Royal Family.

Ima anal sphincter's picture

Please change your avatar. You're fucking up the reputation of Texas. Sheeple production is not one of our strong points. It's 12:30am, I'm finally home from working two jobs. If I had the energy, I'd explain what a dumb ass you are. I'm also sure when the time comes to "take it back" you - "mister gunslinger" won't be man enough to join in.

wolverine521's picture

Hi TG,

David Ray Griffin is a fellow Christian and a leading member of the 9/11 truth movement.  Under the assumption that you really are a good Christian and that you do love America, please read the following book by Dr. Griffin:

     "Christian Faith and the Truth Behind 9/11: A Call to Reflection and Action"

From the Publisher

"WARNING: If, like most Americans calling themselves Christian, you prefer the comfort of acquiescing to the official version of 9/11 and the imperial wars it facilitated, DROP THIS BOOK NOW. But if you are open to the grace of honest inquiry and the risk of following the historical Jesus in confronting the evils of empire, this rigorously argued book is a MUST READ."

—Ray McGovern, CIA veteran analyst now with Tell the Word, a project of the ecumenical Church of the Saviour, Washington, D.C.

"David Griffin has previously made the case for the Bush administration’s complicity in 9/11 and the cover-up of this evidence by the 9/11 Commission. Here, in this important book, he puts these shocking realities in the context of Christian theology and the challenge to the churches. In a profound exploration of the nature and history of the demonic, Griffin suggests that American empire is a culmination of human demonic alienation from God."

—Rosemary Radford Ruether, emeritus scholar, Claremont Graduate University and Claremont School of Theology

"Do American Christians want the United States to act like the New Rome, invading other countries to impose its imperial rule and its control of other peoples’ resources? That is just what the U.S. is doing, increasingly so since 9/11, explains David Griffin. In this gripping summary of evidence for the truth behind 9/11 and the 9/11 Commission report, Griffin makes a compelling case that the imperial practices of the American government have become a destructive force in the world. And he clarifies the biblical and theological basis for Christians to challenge the resurgent American imperialism that often claims divine blessing on its destructive actions."

—Richard A. Horsley, Distinguished Professor of Liberal Arts and the Study of Religion, University of Massachusetts, and author of Jesus and Empire: The Kingdom of God and the New World Disorder

"Compelling reading. Here is a remarkably thorough presentation of facts regarding 9/11 events. Professor Griffin sets the events of 9/11 in a historical, religious, and philosophical context that is most enlightening. Although this context is also somewhat chilling, he holds out hope in his discussion of where we can go from here. I most highly recommend this book!"

—Steven E. Jones, Professor of Physics, Brigham Young University



wolverine521's picture

Gunslinger, I have to agree with you on this point:

"If you truly believe the garbage you post, and this is the extent of your action, then you are as worthless as the govenment you criticize."

It is a simple matter to go to:

and sign the petition there demanding a new 9/11 investigation.  If you are an architect or engineer then you should especially be getting your butt over there.

To all who relish the thought of bringing down the Morgue and their silver manipulation, what could compare with bringing down the bastards behind 9/11 and the endless war on terror.  Cracks are beginning to form already:



mogul rider's picture

Thanks for that Funky, I noticed it as well. How you can call Wall Street full of shit and then turn around and say these adminsistrations aren't is frankly unacceptable.


Unless of course youa re part of the adminsitrations then it all makes sense