Sprott Comments On Liquidity Disconnects Between Paper And Physical Silver Market

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Mon, 01/10/2011 - 10:29 | 863492 Rahm
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Physical Maple's Bitchez!

Mon, 01/10/2011 - 11:23 | 863626 Sgt.Sausage
Sgt.Sausage's picture

Physical *anything*, my "bitchez".

Maples are as good as any other.

Mon, 01/10/2011 - 10:32 | 863495 Ragnarok
Ragnarok's picture

here is SLV manager Eric Sprott



Mon, 01/10/2011 - 10:32 | 863500 boricuadigm-shift
boricuadigm-shift's picture

You beat me to it.

Mon, 01/10/2011 - 10:33 | 863503 txapela
txapela's picture

boricua, soy de guaynabo!

Mon, 01/10/2011 - 10:39 | 863514 boricuadigm-shift
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Muy bien.  Por fin veo a otro boricua en este blog.  Llevo mirando este sitio desde que era blogspot hace ya mas de un año.  El mejor sitio financiero!

Mon, 01/10/2011 - 11:12 | 863587 cartonero
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Mon, 01/10/2011 - 11:13 | 863591 txapela
txapela's picture

yo lo llevo mirando desde hace mucho ya, pero solo hace varios meses que se convirtio en algo diario para mirar.

Mon, 01/10/2011 - 11:35 | 863678 akak
akak's picture

Oye muchachos, es este sitio de repente ahora en espanol?!

Plata putas!

Mon, 01/10/2011 - 11:45 | 863718 Bastiat
Bastiat's picture

"Plata putas!"

I got that bit!


Mon, 01/10/2011 - 12:22 | 863830 Cash_is_Trash
Cash_is_Trash's picture

Plata y oro culeros!

Mon, 01/10/2011 - 12:38 | 863879 akak
akak's picture

Y no se olvide la platina y el paladio tambien!

Mon, 01/10/2011 - 13:53 | 864124 FatFingered
FatFingered's picture

Plata putazz.

Tue, 01/11/2011 - 14:14 | 867519 Rahm
Rahm's picture

Siete su boca tu putazzz!

Mon, 01/10/2011 - 10:33 | 863501 txapela
txapela's picture

yo, yep. i got the math question wrong. it fucking asked 19 * -17 = ??? I wrot ein the answer and it gave me some shit about answer couldn't be more than 2 character sor some such shit?

Mon, 01/10/2011 - 10:38 | 863513 Ragnarok
Ragnarok's picture

Another diversion to keep the robots at bay.

Mon, 01/10/2011 - 10:32 | 863499 txapela
txapela's picture

bro, that's incorrect. Eric Sprott manages PSLV, not SLV. PSLV is a closed fund. SLV is an open fund. Different funds. I'm doubting that he's running two different funds for different companies of the same precious metal. Conflict of interest and all.

Mon, 01/10/2011 - 12:25 | 863840 Cash_is_Trash
Cash_is_Trash's picture

I dumped SLV for PSLV last week. If you notice the charts, SLV doesn't trade as accurately versus the spot price.

Sprott trades with greater premium on the upside in comparison to SLV.

Mon, 01/10/2011 - 10:33 | 863504 Sudden Debt
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Actually, most of the silver bullion sites sited that due to the holidays, deliveries where suspended untill january.

Mon, 01/10/2011 - 10:54 | 863536 CrockettAlmanac.com
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sites sited


sites cited

Mon, 01/10/2011 - 11:40 | 863701 small watcher
small watcher's picture

A keen-sighted reader saw "sited" where "cited" should have been seen...

Mon, 01/10/2011 - 11:48 | 863728 billhilly
billhilly's picture

Most excellent, my first morning laugh.

Mon, 01/10/2011 - 13:26 | 864045 barkster
barkster's picture

we cite you with this citation for your oversight of this site.

Mon, 01/10/2011 - 14:16 | 864222 stewie
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Wow you guys are on a roll!

Mon, 01/10/2011 - 12:00 | 863760 akak
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Cites sighted.

Mon, 01/10/2011 - 11:09 | 863568 Non Passaran
Non Passaran's picture

Yeah, right, and November 11, when they ordered that silver, was the last working day before Christmas.

Mon, 01/10/2011 - 10:34 | 863505 Oh regional Indian
Oh regional Indian's picture

It would be nice to trust the Sprott folks, given what they do for a living and knowing there is a genuine phys shortage looming (supply concerns here in India, especially on big run-up days and their immediate aftermath), this seems like the wrong source. It is in their interest to spread such news (vague of course) to stampede a small prt of the herd their way.

Silver positive of course and maybe that is all that really matters.



Mon, 01/10/2011 - 10:46 | 863524 breezer1
breezer1's picture

the dealer i use has had problems suppling bars. when i order it takes less than 5 business days to deliver. for sprott to buy 22mm ozs and for delivery to take over 2 months tells me that there was a supply problem. it could be armoured trucks are too busy but it seems to be a common problem and has been like it for a year or two.

Mon, 01/10/2011 - 10:57 | 863542 Oh regional Indian
Oh regional Indian's picture

Same thing here breezer. Caveat Emptor is all.


Mon, 01/10/2011 - 12:40 | 863890 Pegasus Muse
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The mint I use is running hard but cannot keep up.  Huge orders (numbers & size) in Nov/Dec.  Delivery time has doubled.  Used to be 4-6 weeks now its taking 8-12 weeks. 

They buy and sell Ag & Au.  They're selling a lot more than they are buying.

Mon, 01/10/2011 - 11:28 | 863648 dognamedabu
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Sure Sprott talks his book but IMO is a straight shooter. I am investing in a handful of cos of his and they are second to none when it comes to getting it right. His team(including the recent addition of Rick Rule) is about the best in the business. I see no advantage for him to mislead people about the market except for short term gains which, following him over the last decade he is anything but looking for short term gains.



Mon, 01/10/2011 - 12:29 | 863851 Cash_is_Trash
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Eric Sprott and John Embry think it's hittin' $50 this year...

Mon, 01/10/2011 - 12:34 | 863861 Oh regional Indian
Oh regional Indian's picture

Good to hear first-hand dogn. Thanks.


Mon, 01/10/2011 - 10:36 | 863506 Sudden Debt
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SLV was born in April 2006, with just 21m ounces of silver held in trust for its shareholders.  As expected, it opened up a huge new conduit for traditional stock-market capital to flow into silver bullion.  The more stock investors who buy SLV, the more silver this ETF’s custodians have to purchase to shunt this excess buying pressure directly into the underlying physical metal itself.  Last month, SLV’s holdings hit a new record high approaching 353m ounces!

To put this into perspective, global silver production in 2009 ran about 700m ounces.  Stock investors’ vast capital has already absorbed half a year’s worth of global silver production in the primary US silver ETF alone!  This new source of capital has accelerated this silver bull while making it much more consistent than the 1970s one, because the dollar inflows are more constant

Mon, 01/10/2011 - 10:59 | 863546 shortus cynicus
shortus cynicus's picture

Main custodian of SLV is JP Morgue with conflict of interest by shorting silver at COMEX. 

So please anyone stop writing that SLV "has silver", it is one of many fractional reserve scams embedded deeply into a system. BIS and its "gold" certificates is probably the second one, but a little bigger :-)

Mon, 01/10/2011 - 12:37 | 863878 strannick
strannick's picture

Harvey notes how the SLV redemptions, presumably by authorized participants grabbing physical, almost identically matches huge withdrawls from the Comex.


Bullionbulls has an account of double counting SLV in physical inventories.

Physical silver in your possesion puts one beyond the reach of such terms as 'unallocated' 'authorized participants' and 'double counted'

Mon, 01/10/2011 - 11:09 | 863574 Quinvarius
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And to put that inpersepctive, JPM has 3.9 billion shares outstanding.

Mon, 01/10/2011 - 15:58 | 864708 Stormdancer
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Giving Adam Hamilton credit for his words would go a long way toward enhancing perception of your own integrity.

Mon, 01/10/2011 - 10:38 | 863510 Thoreau
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There are cheaper and more anonymous outlets than buying directly from the US mint: aka Joe Blow who needs some dough to feed the family.

Mon, 01/10/2011 - 10:39 | 863515 Jason T
Jason T's picture

I'm on a waiting list.. well, been on a waiting list for physical silver from my local dealer.  Some 50 deep but am waiting.. shit, since silver was 14 in the summer.

Mon, 01/10/2011 - 10:46 | 863523 JLee2027
JLee2027's picture

No one should be waiting that long. What exactly are you looking for?

Mon, 01/10/2011 - 11:08 | 863565 breezer1
Mon, 01/10/2011 - 10:44 | 863520 Sudden Debt
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expectation of a $45 to $60 silver price before summer 2011:




Mon, 01/10/2011 - 10:48 | 863526 RobotTrader
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QE ready to be unleashed to stick-save the likes of BBVA?

Mon, 01/10/2011 - 10:55 | 863537 LongSoupLine
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uhhhh, curious what that has to do with the subject matter of the thread?...other than QE ultimately raising PM's further.

Mon, 01/10/2011 - 11:07 | 863563 Bill Lumbergh
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Not looking good with that "world record volume"...


Mon, 01/10/2011 - 11:54 | 863741 akak
akak's picture

Robot, what are those cryptic abbreviations on the x-axis of that chart --- "Jan", "Jun", "Sept"?  You ought to know by now that it is only HOURS that matter to a real trader like yourself --- nothing beyond a 24 hour time frame!  It's all short-term, baby, SHORT TERM!

Mon, 01/10/2011 - 13:16 | 864003 velobabe
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been Cdaded

Mon, 01/10/2011 - 10:53 | 863532 aribabak
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Why did Harvey Organ's blog used PHYS when it quotes the price of this Sprott Silver Trust ?

Mon, 01/10/2011 - 11:33 | 863665 Temporalist
Temporalist's picture

Read it again it first uses GLD and SLV and immediately following that uses Sprott Silver and Gold.

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