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Sprott Launches Physical Silver Mutual Fund, Will Likely Soak Up Much Marginal Silver Inventory

Tyler Durden's picture




 

And another major source of physical demand in the already very undersupplied silver market appears. Just released from Sprott Asset Management, who recently added to the perfect storm in silver by cashing out on the record PSLV premium and converting proceeds to miner stocks: "The Sprott Silver Bullion Fund is an innovative offering, being the
first mutual fund in Canada to invest primarily in unencumbered, fully
allocated silver bullion
. The Fund's objective is to seek to provide a
secure and liquid investment for investors seeking exposure to silver
bullion without the inconvenience associated with direct investment." We can't wait to discover how many tons of silver this mutual fund will soak up imminently, and where the always exciting adventure of "COMEX registered silver" takes us next...

Full release:

Sprott Asset Management Expands its Industry Leading Family of Precious Metals Funds with First Silver Bullion Mutual Fund in Canada

TORONTO, May 9 /CNW/ - Sprott Asset Management LP ("Sprott") is pleased to announce that it has expanded its industry leading family of precious metals funds with the addition of the Sprott Silver Bullion Fund.

Sprott now offers five different precious metals funds including, Sprott Gold & Precious Minerals Fund, Sprott Gold Bullion Fund, Sprott Silver Bullion Fund, as well as the exchange-traded Sprott Physical Gold Trust and Sprott Physical Silver Trust.

"We have been very early and active investors in precious metals and we strongly believe that all investors should have an allocation to precious metals in their portfolios. With our newest fund, investors will have greater choice as to how they choose to gain exposure to this asset class." says James Fox, President of Sprott Asset Management.

The Sprott Silver Bullion Fund is an innovative offering, being the first mutual fund in Canada to invest primarily in unencumbered, fully allocated silver bullion. The Fund's objective is to seek to provide a secure and liquid investment for investors seeking exposure to silver bullion without the inconvenience associated with direct investment.

 

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Mon, 05/09/2011 - 10:47 | 1255411 SobaYobonay
SobaYobonay's picture

excellent.  

Mon, 05/09/2011 - 10:53 | 1255440 JLee2027
JLee2027's picture

+100 tonnes of Silver bars

Mon, 05/09/2011 - 11:16 | 1255535 redpill
redpill's picture

OT: Meanwhile, some black swans refuse to die.

 

http://news.xinhuanet.com/english2010/world/2011-05/09/c_13866296.htm

 

Japan detects radiation up to 700 millisieverts at Fukushima nuke plant...

 


Mon, 05/09/2011 - 11:26 | 1255586 bob_dabolina
bob_dabolina's picture

There is nothing black swan about it.

Build  6 nuclear reactors right next to eachother in the most earthquake prone region in the world and it would be sensical to assume a disaster like this was inevitable.

Wouldn't surprise me if Diablo Canyon/San Onofre meet the same end as Fukushima.

Mon, 05/09/2011 - 12:08 | 1255794 LawsofPhysics
LawsofPhysics's picture

That would suck, great surfing here.

Tue, 05/10/2011 - 02:56 | 1258260 Anonymouse
Anonymouse's picture

I never could drive by the San Onofre reactor without a big grin.  And for the record, that was before "Naked Gun" came out.

Mon, 05/09/2011 - 10:47 | 1255412 Crisismode
Crisismode's picture

But . . . but . . . but . . . . FOFOA says Silver is going to $10!!!

Mon, 05/09/2011 - 10:54 | 1255461 oddjob
oddjob's picture

and then the FOFOA pinhead goes on to state ...'Perhaps they will only sequester the silver mine supply on national security grounds'

 

Mon, 05/09/2011 - 10:58 | 1255474 Kina
Kina's picture

12 German Marks bought an ounce of silver in 1919. But, by 1923 it took 543,750,000,000 marks to buy that same ounce of silver

Mon, 05/09/2011 - 11:00 | 1255486 SheepDog-One
SheepDog-One's picture

People worried about 'price' of PM's are completely missing the point, putting the cart before the horse.

Mon, 05/09/2011 - 11:09 | 1255516 Ahmeexnal
Ahmeexnal's picture

Price no object.

Mon, 05/09/2011 - 12:30 | 1255885 LaughingMan
LaughingMan's picture

Silver is priceless!!!!! 

It's so much fun banging my 10 ounce bars together like a teacher cleaning chaulk board erasers. 

 

YYYYYYAAAAAAAAAYYYYYY

Mon, 05/09/2011 - 11:11 | 1255525 Rynak
Rynak's picture

No they are not. But i'm not sure if i should explain why... it would be hard to explain something so obvious, without it sounding degoratory.

Mon, 05/09/2011 - 11:15 | 1255542 SheepDog-One
SheepDog-One's picture

Theyre NOT worried about 'price'? Thats all I hear, how many dollars gold or silver is priced in right now.

Mon, 05/09/2011 - 11:19 | 1255546 Rynak
Rynak's picture

Misunderstanding - i meant that they are not missing the point.

Mon, 05/09/2011 - 11:35 | 1255634 Spitzer
Spitzer's picture

Sheepdog

In the end, it only matters how much wieght you have but it is still nice to see gains while we are in the current system.

Mon, 05/09/2011 - 12:39 | 1255915 Rynak
Rynak's picture

Nope. Honestly, i have always been confused about how so many members here, who are otherwise quite smart, repeat such an obvious break of logic:

If you use a good primarily as a currency (so, it by itself TO YOU has no other use than being able to trade it for something else), then there are only three things that matter:

- Buying

- Conservation

- Selling

Nothing else. You buy that good (here, with buying i'm including someone else giving it to you in exchange for something else).... in that trade, the "price" simply is the exchange rate (how many X for how many Y). Then after this happened, you want the wealth which this currency represents to be conserved as best as possible (optimally even rise).... so that when you later want to trade it in for something else (selling) you get a good deal (again, exchange rate).

A currency is USELESS and WORTHLESS if any of those three aspects are absent. If you cannot buy it, you will never have it. If it doesn't conserve value efficiently, then in a worst case (100% value destruction) it again was pointless... you may as well in the previous trade have given your trading partner stuff for free. And if you cannot sell it, then it for obvious reasons too is completely pointless, since the only reason you ever accepted it, was that you can trade it in for something else.

Now, how does value behave in this setup? Well, its again those three aspects:

1. Buying.... how much X do you get for Y?

2. Conservation.... how much does X lose/gain in value?

3. Selling.... how much Y do you get for X?

Marketprice is part of this..... if you buy and sell on the open market, the marketprice will define at which rate you can buy at a given point in time, and which rate you can sell at a given point in time. Yes, i know, marketprice does not matter until you buy or sell.... but when you buy and when you sell it is the ONLY thing that matters!

So, marketprice not only matters, it besides of conservation is the only thing that matters for a currency, which to you personally has no other use. You may - depending on the circumstances - be free to decide when to buy and when to sell, but you still have to buy, and have to sell, for it to be a currency at all.

Mon, 05/09/2011 - 12:51 | 1255964 eisley79
eisley79's picture

sheep is right and wrong

-price doesnt matter, its ounces

BUT

-when you are still buying, and not looking at unrealized gains, PRICE matters alot, because it effects how much more you can get.  Buying TFDs helps you get more of what does matter

 

ounces.

 

Mon, 05/09/2011 - 14:30 | 1256320 Spitzer
Spitzer's picture

Gold is not a currency, it is a wealth reserve asset. It has no other economically viable use.  Just because the price goes higher does not make it a worse reserve asset or dethrone it from the Exters pyramid.

The price of gold always goes up. It went from $35 in the 70's to $260 in 2001.

Mon, 05/09/2011 - 15:07 | 1256373 Rynak
Rynak's picture

I fail to see how that makes ANY difference at all. What you call "wealth reserve asset" is exactly the same as what i described, just more longterm - everything else stays the same.

You may be of the opinion that i.e. gold will in the longterm only go up (and this is indeed VERY probable) but it still does not make the sell-price irrelevant... in fact, the opposite is the case: In such a case - exactly because sell-price is so important to you, and because you are so certain that prices will in the longterm up... only BECAUSE of just this, you do no longer think about it.

Or phrased another way: Aspects do not stop existing, just because they are certain - more like the opposite. "I don't need to care about sell-price, because it is guaranteed to be good" is not the same as "sell price does not matter".

As i see it, what people here mean, does make sense, but how they express this with language, makes no sense at all.

P.S.: Another way to phrase it: When you say "sell price doesn't matter", then what you actually mean is "Don't worry, it will be good anyways"

P.S.: Question to the two braindead junkers..... are you just without much attention skipping through a post, and classify it into "my camp, their camp", or do you actually read posts, and think about them? If its the former, then you are no better than the trolls which you despise. If its the later, then you failed at doing so, because if you had actually read the post, you would have noticed, that all i'm describing here, is an issue of LANGUAGE.

Mon, 05/09/2011 - 15:46 | 1256614 Spitzer
Spitzer's picture

Ok, I sorta kinda get what you mean but at this juncture, there really is no reason to worry about price. Pull up a chart of the Feds balance sheet and tell me that we should be worrying about price.

Pre 2008, you have a better case but now ??

Mon, 05/09/2011 - 16:01 | 1256690 Rynak
Rynak's picture

*sigh* You don't need to tell me this. When did i ever question this?

I did mean what i did say. I did not mean what i did not say.

 

All i was saying, was that "price doesn't matter" makes no sense, and that what people mean when they say this, is something else (that when in the longterm one sells, it will be a scenario where the price will be good anyways, and that therefore, one doesn't need to worry about that).

Mon, 05/09/2011 - 11:18 | 1255545 mayhem_korner
mayhem_korner's picture

...degoratory?

Mon, 05/09/2011 - 11:20 | 1255549 Rynak
Rynak's picture

Sorry, typo, will fix - thanks :)

EDIT: Dammit, cannot edit that post anymore. What are the rules about how long one can edit a post anyways?

Mon, 05/09/2011 - 11:30 | 1255602 SheepDog-One
SheepDog-One's picture

Soon as someone replies to your post then you cant change it.

Mon, 05/09/2011 - 11:35 | 1255633 Rynak
Rynak's picture

thanks for the info.

Mon, 05/09/2011 - 11:47 | 1255711 goldfreak
goldfreak's picture

you never knew that? that means you're new here?

Mon, 05/09/2011 - 12:21 | 1255844 Rynak
Rynak's picture

A few weeks, long time lurker before that.

Mon, 05/09/2011 - 12:55 | 1255968 eisley79
eisley79's picture

drupal basic comment module = mega fail

Mon, 05/09/2011 - 11:16 | 1255537 Hephasteus
Hephasteus's picture

People in PM's are land animals. Still living in a common law ownership model. Not the maritime fractional reserve model where all assets and liabilities are turned into debt and payment liquidity. The price is simply the deal given for exchanging between the hard physical realm to the realm of the sea and the pirates who accuse everybody of piracy. The internet is a sea of electrons and the routers are the trade routes. Nobody will be allowed to own the routers they will simply pay to use the pirates routers. The pirates want to drown you in debt they don't want you on high ground. They come in their boats. They make their movies. Water world. They scare you with floods and droughts. They change from west to east. From the pacific age the atlantic age. They live on islands and drive up the prices of beach front property. They join yachting clubs and eat lobsters.

http://www.youtube.com/watch?v=avaSdC0QOUM

 

 

Mon, 05/09/2011 - 11:24 | 1255578 JW n FL
JW n FL's picture

I laughed my ass off! I needed that! God Bless SNL! God Bless You Fine Sir for bringing some laughter into everyones lives on a Crimex Part Deux China Special Monday!

 

but seriously.. who didnt get the flip flop memo?

Mon, 05/09/2011 - 11:39 | 1255666 JimBowie1958
JimBowie1958's picture

Heh, on a boat...

Reminds me of a boat I saw named 'Optimism'. It was sitting in front of a credit union with a for sale sign on it, lol.

Mon, 05/09/2011 - 13:11 | 1256017 dalkrin
dalkrin's picture

I like to think of myself as a modern-day Noah, building my ark for the inevitable floods ahead.  Trolls try to deride us as misguided enthusiasts, yet I am content continuing my preparations for the storm brewing.  Some day in the future the seas will be teeming with drowned troll carcasses.  My inspiration is divine!

Mon, 05/09/2011 - 12:42 | 1255927 sheeple
sheeple's picture

man i dont' know about sprott; this guy sold his silver units...and came out to defend it like he anticipated the outcoming response...i dont' trust this guy anymore

Mon, 05/09/2011 - 12:43 | 1255941 tmosley
tmosley's picture

He sold it to buy more physical and silver mining shares, because they were undervalued.

What's wrong with that?

Mon, 05/09/2011 - 13:19 | 1256029 mrgneiss
mrgneiss's picture

Because he knew in advance that retards wouldn't comprehend it and shills would attack it as they have very little to work with.  I'd rather talk about why the directors and managers of GLD and SLV don't own a single share of their own fund.

http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=14750:gld-director-holds-physical-bullion-not-gld&catid=48:gold-commentary&Itemid=131

Mon, 05/09/2011 - 12:51 | 1255954 Jonas Parker
Jonas Parker's picture

And thanks to our wonderful Federal Reserve Bank, congress, and administration, this wonderful hyperinflation is coming soon to us...

Mon, 05/09/2011 - 13:54 | 1256164 tiger7905
tiger7905's picture

Some thoughts from Don Coxe on how the Glencore underwriting affected the commodities take down.

http://goldandsilverlinings.com/?p=925

Mon, 05/09/2011 - 13:58 | 1256170 kumquatsunite
kumquatsunite's picture

Whenever an extreme is cited, one should immediately level that cite. The extremes show the "madness of crowds" and not the living daily of life. Weimar was an extreme, for instance, when the German mark was deliberately destroyed to pay off war debts, and reestablish the "new" currency that benefit the German people. Similarly, Zimbabwe is oft cited as an example, but Zimbabwe is a third world country subject to the irregularities of tribal rule. Silver is going to five bucks an ounce as the balast of America shifts to what is really important: food, famly, and faith. There is a great quote (can't find right now) where a successful person says something like, "Take all my money away from me and in ten years I'll have it all back." That is the difference between successful and stupid. Stupid has to pile into silver thinking they can get rich on a spike and get out before everyone else, regardless of the misery they cause, as Soros did with the Bank of England. Success will create a business that is worth more than a bunch of cold metal sitting in a bunker doing absolutely nothing productive. That is the way of the doom and gloomers who self-aggrandize with proclamations that the world is over. So if Japan can get those reactors under wraps....I have seen the future and it doesn't care about gold and silver. Gold...well, won't tell ya what I know but sure wouldn't bother with it, and as to touting silver as a industrial metal...we are electroniced out...what we do need in the United States are cloth factories, shoe factories, anything that is used in daily life will do! By the way, after six months Another small electronic gadget from China stopped working. Then my blender broke although it is virtually new. Anyone else watch the guys on American Pickers? Tears came to their eyes when they pulled out an old (think it was) Westinghouse washing machine Made in America. Add up all the folks on WELFARE fat from Walmart potato chips and add up all the illegals who take the jobs they Should be working (the two combined are the single greatest threat to this country's sovereignty: we let in illegals, so-called legals...when you have a housing crash and a job crash, you don't let in foreigners. The days of immigration should have ended long ago. Someone is paying a lot of money for that Ponzi schem; oh should have said: Immigration is a Treasonous Ponzi Scheme."

We are now beyond our carrying capacity; we translate all into endless languages; we accomodate and appease and administer to foreigners all that is the heritage of our own children and grandchildren. If you would like to have a country with fresh water for your children, stop immigration now. 

Mon, 05/09/2011 - 10:57 | 1255479 Apophis
Apophis's picture

I don't get the haters over there: 

"The major monetary metal in history is silver, not gold."
-Friedman

I hope they're right though, I would love to buy physical under $20/oz again.

 

Mon, 05/09/2011 - 11:25 | 1255594 JW n FL
JW n FL's picture

I hope it goes to $1!!! and if it wants to have a 15% vol # going forward until the FED gets its $2T.. or until the Crimex in China figures out the people over there are getting out of paper... and want physical.. I will trade in and out with some to get some mo! BITCHEZ!!!!

 

BUY LOW!

SELL HIGH!!

Buy MO! PM's*

*note: or rent a boat, see above.

Mon, 05/09/2011 - 11:35 | 1255648 Spitzer
Spitzer's picture

That depends on which part of money you are talking about. For meduim of exchange, yes, silver has been the best currency metal but for store of value, gold has and always will be the best metal.

Gold is far too precious to be used as a meduim of exchange.

Mon, 05/09/2011 - 11:45 | 1255697 JimBowie1958
JimBowie1958's picture

I dont get it either, especially the ones that say silver is in a bubble. Bubbles are characterized by the complete dominance of speculators who price the commodity so high that there is nothing else you can do with it to make money with it except to resell it as the commodity itself, arent they?

Most silver is still used to produce products for sale, and buying silver for resale as silver itself is only about 4% of the current market. No one that produces things made from silver are stopping production due to ridiculous silver prices, so there is no indication of silver becoming entirely speculative in its trade and thus there cannot be a bubble.

Or am I just missing something? Is there a new definition for what a bubble is?

Mon, 05/09/2011 - 11:55 | 1255739 Seacap81
Seacap81's picture

Make no mistake,  FOFOA is Pro-Monomettalic Gold Standard.

FOFOA would be the modern day target of William Jennings Bryan Speech in 1896.

 

Mon, 05/09/2011 - 12:01 | 1255767 tmosley
tmosley's picture

Exactly. Both metals are money, as are platinum and palladium. Any nation that fails to recognize them is destined for rocky economic times in direct proportion to the amount of metal excluded from the monetary system.

Similarly, any government that fails to recognize natural rights is doomed to social unrest and rebellion.

Mon, 05/09/2011 - 14:35 | 1256328 Spitzer
Spitzer's picture

Gold functions as the store of value, silver platt and pall don't.

Mon, 05/09/2011 - 14:35 | 1256340 tmosley
tmosley's picture

Prove they don't.

And don't tell me its because their prices go up faster--that is merely a reflection of their supply reduction from industrial use. Having less money around doesn't make the remaining money not money. It just increases its purchasing power.

Mon, 05/09/2011 - 14:50 | 1256380 Spitzer
Spitzer's picture

Gold NEVER makes new lows. Silver does. Gold went from $35 to $150, then on to $850, then back down to $260. So the people that bought at $125 still had a double after the crash and the rock bottom price of $260. And the real rock bottom would never have been under $400 if Gordon Brown didn't dump gold onto the market at historic lows.

 

Mon, 05/09/2011 - 15:19 | 1256513 tmosley
tmosley's picture

What are you even talking about?

When did silver go beneath $1.25? That is the approximate amount of silver coinage containing 1 ozt of silver. It NEVER went under that.

And using dollar pricing in a highly manipulated market doesn't exactly inspire confidence in your conclusion.

Mon, 05/09/2011 - 15:56 | 1256655 Spitzer
Spitzer's picture

Silver shows the same amount of voletility as paper currencies because it is not rare enough. That is why it does not serve the store of value function as well as gold.

Tue, 05/10/2011 - 03:49 | 1258242 geekgrrl
geekgrrl's picture

I didn't junk you, but silver is very rare. Rarer than the so-called rare-earth metals. It occurs in 0.07 parts per million of the Earth's crust vs 0.004 ppm for Au, and the concentrated deposits are long gone. http://www.gold-eagle.com/editorials_01/poitras022801.html

So Ag is roughly 16x more prevalent in the Earth's crust than Au, but most of the low-hanging fruit has already been mined, and yet, there is something like 1bn oz Ag vs 5bn oz Au above-ground. Seems to me that silver is actually much scarcer than gold - in above-ground terms, and yet amazingly, the price ratio of Au:Ag is 40:1, while in above-ground scarcity terms, it is 5:1.

If we returned to the ratios in the crust (at the very least, and even ignoring the innumerable industrial uses of Ag) the price should be $1511/16 = $94 per oz Ag.

I don't think the volatility is due to scarcity, I think it is due to manipulation. It is akin to trying to keep a beach ball under water. It just doesn't want to be there, but TPTB keep trying to keep it underwater.

Mon, 05/09/2011 - 14:58 | 1256402 cackling capers
cackling capers's picture

It seems to me that volatility is undesirable in 'money', since it can lead to unexpected gains and losses in purchasing power. This in turn increases insecurity, speculation and makes it unattractive as money. As an example, people were talking about a short squeeze two weeks ago and it seems to me that anything that can be squeezed is not sound money.

Now if or when a stable price is reached, maybe silver can be money. I have no idea about that one. 

 

N.B. In all cases I use 'price' to refer not just to FRNs, but also value relative to commodities/services.

 

Mon, 05/09/2011 - 15:29 | 1256550 tmosley
tmosley's picture

The price is fake. Just paper games.

If gold were revalued for use as currency, no-one would have enough money (physical gold) to manipulate the price, and they wouldn't be able to make money doing it if they did.

Mon, 05/09/2011 - 19:30 | 1257360 cackling capers
cackling capers's picture

For gold this would probably be true. Similarly for silver, unlikely though that may be. To say the price is fake is just off. It may be manipulated but it is real. I can not sell an ounce of silver for an ounce of gold or a bloody barrel of oil. Crying 'the price is fake1!!11!' will not change that.

I was reacting to your request for proof that silver (amongst others) is not a store of value. Volatility is that proof. My argument is that unless, as you stated, the price is stable (not only the paper price 111!!1) and the market (as I stated) can not be easily cornered silver will not be a suitable money since it will be prone to changes in price due to speculation and uncertainty.

 

Mon, 05/09/2011 - 21:46 | 1257714 kumquatsunite
kumquatsunite's picture

OK. So I have decided that tomatoes are money. Oh, and so are apple pies and loaves of bread, small fishies too. Just because you call it money doesn't mean it is. It's always seemed odd that any metals would be considered money; after all, there are so many things that have more value given various situations: an education, a great cooking pot, an excellent pair of shoes/boots in many parts of the world will do more good than any metal. Clearly, this whole Ag/Au situation is designed as just another fleece of the little guy, hoping to get them in, take profits, get them in again (new group!), take profits, look oneself in the mirror, shake it off. Repeat.  My respect is held not for Ag/Ag but for those who endeavor to build, grow, and be a new business in America. Time to put Americans to work and stop all immigration, course that's only if you want a country for your children.

Mon, 05/09/2011 - 12:48 | 1255955 dlmaniac
dlmaniac's picture

FOFOA still wants FIAT to be used in his "FreeGold" system. Bizarre.

Mon, 05/09/2011 - 14:45 | 1256362 Spitzer
Spitzer's picture

FOFOA is just stating the obvious of what will happen in the future. The store of value function and the medium of exchange function will separate.

Fiat for the medium of exchange, gold for the store of value. Medium of exchange currencies can still function like they do now but there will be no  fiat being stored for wealth reserve. Not dollars, not Euros, nothing.

It is already happening now. The Jamaican dollar functions as the medium of exchange in Jamaica with no issues but how many Jamaican millionaires are holding Jamaican dollars as wealth reserve ? None. The same will happen for the US and all western currencies.

How can you argue with that ?

Even now, China and Russia are making deals in their own currencies, while using the dollar as the store of value. That will change of course but I only say it to show that the 2 functions of money are already being split.

Mon, 05/09/2011 - 12:51 | 1255956 dlmaniac
dlmaniac's picture

FOFOA still wants FIAT to be used in his "FreeGold" system. Bizarre.

Mon, 05/09/2011 - 12:42 | 1255936 GetZeeGold
GetZeeGold's picture

 

But . . . but . . . but . . . . FOFOA says Silver is going to $10!!!

 

That's what happens when you count on a friend of a friend.....wait for ANOTHER.

 

 

Mon, 05/09/2011 - 10:45 | 1255413 slow_roast
slow_roast's picture

Sprott is the anti-Comex/CFTC cabal; he's the shadowy figure in the bushes waiting to launch surprise attacks pushing the price of silver higher, not lower.

 

Margin raise imminent bitchez.

Mon, 05/09/2011 - 11:13 | 1255473 Bay of Pigs
Bay of Pigs's picture

Yes, and I'm sure the PM trolls and bears will portray him as some selfish greedy evil doer that is trying to "manipulate" the silver market.

You really can't make this shit up...

Let's join Sprott in opposing the fraud ridden COMEX, SEC and CFTC. 

BUY physical silver...   

Mon, 05/09/2011 - 11:14 | 1255539 silver140
silver140's picture

I'm not expert enough to understand how manipulation of the silver market is done.  Perhaps someone can take a shot at evaluating this article by Avery Goodman.

http://seekingalpha.com/article/268691-anatomy-of-silver-manipulation-ho...

Mon, 05/09/2011 - 11:45 | 1255686 Bay of Pigs
Bay of Pigs's picture

silver140, that is a great article. 

Mon, 05/09/2011 - 12:14 | 1255818 silver140
silver140's picture

Thanks Bay of Pigs. I've got this guys newsletter, but just read the precious metals part, and then usually only him.  What I like about it, it gives an underlying reality to the fake reality propagated by the government, the "regulatory" entities, and the MSM. Anyway, I appreciate your input.

Mon, 05/09/2011 - 11:42 | 1255671 Common_Cents22
Common_Cents22's picture

yep, Sprott better not even have a parking ticket.  I'm sure the powers that be will be looking into Sprott for any regulatory leverage possible

Mon, 05/09/2011 - 11:41 | 1255680 Common_Cents22
Common_Cents22's picture

yep, Sprott better not even have a parking ticket.  I'm sure the powers that be will be looking into Sprott for any regulatory leverage possible

Mon, 05/09/2011 - 12:05 | 1255773 trav7777
trav7777's picture

Sprott is in the business to MAKE MONEY.

He's not your buddy, he's not your leader, he's not your friend, he's not your king.  He's there to make money off of YOU, dipshit

Mon, 05/09/2011 - 12:13 | 1255814 Rynak
Rynak's picture

Oh noes, i guess mutualism does not exist in business......

.....unfortunatelly, there is some truth to that.

Mon, 05/09/2011 - 12:38 | 1255918 JimBowie1958
JimBowie1958's picture

It is possible for people to make money cooperatively.

Why do you presume this is not possible or that Sprott is unwilling to work in concert with investors?

You seem to be a bit harsh on the karma, dude.

Mon, 05/09/2011 - 14:08 | 1256220 Bay of Pigs
Bay of Pigs's picture

Yes Trav,

And what did he make his money in the last ten years? Gold and silver. Lots of people made money with him. I guess that's somehow wrong to you?

You're truly pathetic...

Mon, 05/09/2011 - 10:45 | 1255415 Roy Bush
Roy Bush's picture

More and more companies and offerings.  Why not just offer more shares of PSLV?  This maze of Sprott offerings suggests foul play or graft somewhere and this is from a holder of Sprott Resource and PSLV.

Mon, 05/09/2011 - 10:46 | 1255425 SheepDog-One
SheepDog-One's picture

Jooz run it, has to be! Paper Ponzi!

Mon, 05/09/2011 - 10:49 | 1255438 Roy Bush
Roy Bush's picture

Did I say that?

Mon, 05/09/2011 - 11:27 | 1255592 lincolnsteffens
lincolnsteffens's picture

I see in addition to hating Jooz you are in love with sheep. Is that your girlfriend's picture you are proudly display? Probably you are just a regular sheep polygamist and that is just your current sheep dip hottie.

Mon, 05/09/2011 - 11:41 | 1255598 lincolnsteffens
lincolnsteffens's picture

dip shit

Mon, 05/09/2011 - 11:42 | 1255640 lincolnsteffens
lincolnsteffens's picture

dip shit ++++

Mon, 05/09/2011 - 12:40 | 1255926 JimBowie1958
JimBowie1958's picture

I suspect that Episcopalians and Presbyterians are as overly represented in our financial markets as any other religion.

Why focus on 'joos'?

Mon, 05/09/2011 - 11:26 | 1255585 earlthepearl
earlthepearl's picture

No, actually he knows that brokers/FAs will not market ETFs to their clients because no expanse kick back. By making a mutual fund, brokers will now start marketing the silver mutual Fund because they will get a cut of the expense ratio.

He is doing this to expand peoples access to his funds, quite smart

Mon, 05/09/2011 - 12:03 | 1255774 bobby02
bobby02's picture

Sprott is marketing gold (pun intended). He knows how to push all the right buttons - just read the comments on this page. Gotta give credit where credit is due.

Mon, 05/09/2011 - 10:48 | 1255416 youngman
youngman's picture

Sounds like a CEF.....they already have that in Canada.....But good idea....It will be sucessful if it has the metal.....the SLV´s of the world will go bye bye soon....just paper

Mon, 05/09/2011 - 10:45 | 1255418 SheepDog-One
SheepDog-One's picture

'Physical silver mutual fund', why? If you want physical silver then just buy it yourself. I call BS this is all paper, not physical.

Mon, 05/09/2011 - 10:54 | 1255466 Vagabond
Vagabond's picture

Excuse to buy up massive amounts more physical distorting the market upwards?

Mon, 05/09/2011 - 10:57 | 1255480 SheepDog-One
SheepDog-One's picture

Massive more amounts of physical from where? Al Capones vault? I dont know, people seem to be jumping all over a new kewl 'physical fund' though, completely missing the whole point of buying and holding PM's in my book. But hey what do I know.

Mon, 05/09/2011 - 11:15 | 1255543 KinorSensase
KinorSensase's picture

I agree but I don't understand how these new funds will play out.  If they actually hold physical then they drive the market up based on real fundamentals by providing a functional (as compared to COMEX) vehicle for investors to satiate demand, correct?  If they're simply reiterations of the paper silver game, then we see a brief repeat of the dynamics we've got so far this year: speculation, volatility and finally margin hikes to squeeze out the weak paper players in the new markets, followed by an increased cultural resolve to buy physical?

Mon, 05/09/2011 - 12:28 | 1255884 Urban Redneck
Urban Redneck's picture

Not all investment vehicles can take physical delivery of commodities.  SLV takes advantage of this and is part of the Comex/LBMA syndicate.  To the extent that physical-silver-backed-paper vehicles exist outside of the syndicate, they are a necessary and useful evil.  However, if an investor in these products thinks that they will be able to perform paper-to-metal alchemy during any bank holiday, then they are a fool.  The silver market is very adept at parting fools from their fiat, so diversify and prepare accordingly.  However, is there is a complete decoupling of the prices of paper and physical silver, then non-syndicate paper has a better chance of following the price of physical silver.    

Mon, 05/09/2011 - 11:46 | 1255707 FidelityBoy
FidelityBoy's picture

"distorting the market upwards"?  How could you possibly have a distortion, shouldn't supply/demand set the price or would you like these (!@#$%^&*) to keep playing their games forever?

Mon, 05/09/2011 - 10:59 | 1255476 Segestan
Segestan's picture

 Alot of people  feel better thinking they have Professionals looking out for their interest. Sprott wants to be that professional.

Mon, 05/09/2011 - 12:11 | 1255803 Common_Cents22
Common_Cents22's picture

for every phys buyer there will be thousands that are intimidated or too lazy to do it.   They are conditioned to just buy paper.

Mon, 05/09/2011 - 13:04 | 1255995 ManOfBliss
ManOfBliss's picture

You're a fucking idiot.

Mon, 05/09/2011 - 10:47 | 1255429 Manthong
Manthong's picture

Might this not be a better forward investor sentiment indicator for the price of the metals against the volatility of the "futures" market?

Mon, 05/09/2011 - 10:50 | 1255446 SheepDog-One
SheepDog-One's picture

I dont care, my gold and silver is for holding long term, not point shaving for day trading. The only benefit to holding gold and silver is hedge against currency collapse sooner or later and getting out thru the other side with something. 'Price of metals' is a non-starter when prices simply mean underlying blown out fiat currencies.

Mon, 05/09/2011 - 11:28 | 1255608 Rynak
Rynak's picture

And yet, whenever you need to buy, and whenever you need to sell - no matter how far those points in time are away, exchange-ratio matters.

Mon, 05/09/2011 - 10:52 | 1255439 youngman
youngman's picture

No Sprott is a big anti-paper guy.....Mutual fund vs closed end fund has different tax implications. Some people might want their silver in Canada rather than buried in their back yards...what it does is takes the hard metal off the market...and it gives investors another option...watch the fees though...that is where he makes the money....

Mon, 05/09/2011 - 11:00 | 1255490 bobby02
bobby02's picture

Sprott has to be one of the most clever financial marketers alive today. Notice how he uses "physical" in the names of funds, or the phrase "unencumbered, fully allocated silver bullion," subtly implying that other funds are investing in encumbered, unallocated silver.

Hmmm. Who do you think his target audience is?

Mon, 05/09/2011 - 12:12 | 1255805 Temporalist
Temporalist's picture

Any marketer worth their salt knows that distinguising your product from other simialr products is a primary goal.  Can hardly blame someone for pointing out their own perceived strengths and uniqueness.

Mon, 05/09/2011 - 11:37 | 1255654 Bastiat
Bastiat's picture

Sprott also makes the money by being long miners who benefit as the price fixing regime collapses.

Mon, 05/09/2011 - 10:56 | 1255457 Yohimbo
Yohimbo's picture

I'll believe it when we see the draw on the comex going exponential.

Mon, 05/09/2011 - 10:56 | 1255458 firstdivision
firstdivision's picture

I would only buy into PSLV and PHYS.  These offerings are just something for Northwest Mutual "advisors" to push. 

 

On another note, judging by the market, I'm guessing POMO will close at $7.2B.  Over/Under anyone?

Mon, 05/09/2011 - 11:51 | 1255733 GoldmanSux
GoldmanSux's picture

You would prefer to buy PSLV at a 15% premium over spot vs. the open ended mutual fund with no premium, but rather priced daily at NAV? really?

Mon, 05/09/2011 - 10:54 | 1255467 SheepDog-One
SheepDog-One's picture

Why anyone would want to let their 'physical' be held in Canada is beyond me, the whole reason for buying and holding physical PM's seems to have escaped most people to the point theyre worried about underlying fiat pricing, and what they can shave in a day trade? Whatever, good luck.

Mon, 05/09/2011 - 11:26 | 1255589 Ruffcut
Ruffcut's picture

HE knows he has to carpe deim. HE wants in on the investor 401K's and such. Or maybe he knows pension peeps that want his product, knowing that crimex is a bag of shit.

Sprott is chiming in and ringing his silver bells.

Mon, 05/09/2011 - 11:39 | 1255663 disabledvet
disabledvet's picture

tis true "if all you've got is a couple of pounds of silver" nobody cares.  if on the other hand you're Mr. Sprott who "has 10,000 tons" (?)--where it is located matters greatly as "governments have eyes on your prize."

Mon, 05/09/2011 - 10:54 | 1255468 redpill
redpill's picture

Someone wants to be Nelson Bunker Sprott methinks

Mon, 05/09/2011 - 10:58 | 1255469 TheGreatPonzi
TheGreatPonzi's picture

So much for that "Sprott exits silver holdings" trolls on ZH promised us...

Mon, 05/09/2011 - 11:00 | 1255493 Quintus
Quintus's picture

Yes indeed.  Speaking of which, I note another positive day for both metals which, as ever, indicates an almost complete absence of PM hating trolls on ZH.

I guess their contracts with JPM expired when the takedown last week was complete.

Mon, 05/09/2011 - 11:16 | 1255530 TheGreatPonzi
TheGreatPonzi's picture

Also note that every comment on this page has been junked.

There are disgruntled trolls who stayed out of silver since the beginning, missed the move, and are now - understandably - frustrated and agressive. 

Mon, 05/09/2011 - 11:20 | 1255557 High Plains Drifter
High Plains Drifter's picture

the trolls don't understand corrections in a bull market.  when there are dips, they scream in unison that the party is over. the party has not even began yet for all intents and purposes.

Mon, 05/09/2011 - 11:16 | 1255536 1100-TACTICAL-12
1100-TACTICAL-12's picture

It's all noise, all the job's are in china now,Ben has to print, if he does not the ponzi crashes. silver, gold ,oil,etc will continue to go up every dip is nothing more than a buying opportunity. Like SheepDog 1 stated it is a shuttle to the other side..

Mon, 05/09/2011 - 11:22 | 1255564 mayhem_korner
mayhem_korner's picture

Takedown complete?  HA HA HA HA HA

100 is back

1,500 is back

can 40 be far behind?

Each time the complex shoots a corruptive round of take-down shells, it's armory becomes that much more depleted.

We store.  We wait.  We win.

Mon, 05/09/2011 - 11:30 | 1255607 firefighter302
firefighter302's picture

"We store, we wait, we win."

We will.

 

Mon, 05/09/2011 - 14:58 | 1256416 High Plains Drifter
High Plains Drifter's picture

40 maybe this week. who knows. it appears to have bottomed out on this corrective cycle. it might fart around all summer long and then we get another big charge toward 50 this fall. it really doesn't matter much to me. i know where it has been and i knwo where it is going and there is nothing that can stop it. not blythe , not jpm, not the fed. it jus bees that way somtime........

Mon, 05/09/2011 - 11:01 | 1255482 Blorf
Blorf's picture

Another way to bone investors in the ass by getting them to overpay for something.  Just buy the actual silver or SLV if that's what you want.  Stop paying "premiums". 

Mon, 05/09/2011 - 11:06 | 1255498 SheepDog-One
SheepDog-One's picture

Thats the way I see it, whats the attraction of paying someone else to supposedly buy and hold PM's for you? The sheeple say 'Baaaaaaaaa'

Mon, 05/09/2011 - 11:29 | 1255614 Franken_Stein
Franken_Stein's picture

... while the wolves say: Yummy !

Mon, 05/09/2011 - 11:23 | 1255567 mayhem_korner
mayhem_korner's picture

I'll hold your silver for you...

Mon, 05/09/2011 - 11:05 | 1255499 vast-dom
vast-dom's picture

ergo SLV goes back to $50 and then to..........$65 by (_______)

Mon, 05/09/2011 - 11:06 | 1255502 MrBoompi
MrBoompi's picture

Commodities markets are joke. Prices have nothing to do with actual supply and demand, and the paper market exists so that prices can easily manipulated.

Buying or selling more silver than actually exists on the earth should be criminal behavior, and bona fide hedge exemptions should be eliminated now.

If you ask 99% of the dumbasses in this country what our economic system is, they'll tell you it's capitalism. They don't have a clue......

Mon, 05/09/2011 - 11:30 | 1255606 Franken_Stein
Franken_Stein's picture

+100

Mon, 05/09/2011 - 11:03 | 1255505 AmazingLarry
AmazingLarry's picture

Blame Canada!

Mon, 05/09/2011 - 11:16 | 1255547 High Plains Drifter
High Plains Drifter's picture

O Canada!
Our home and native land!
True patriot love in all thy sons command.
With glowing hearts we see thee rise,
The True North strong and free!
From far and wide,
O Canada, we stand on guard for thee.
God keep our land glorious and free!
O Canada, we stand on guard for thee.
O Canada, we stand on guard for thee

Mon, 05/09/2011 - 11:24 | 1255572 tickhound
tickhound's picture

I heard somewhere once that on a good day our Salvation Army can kick Canada's ass.

Mon, 05/09/2011 - 11:44 | 1255681 High Plains Drifter
High Plains Drifter's picture

they are good for hockey and drinking molson's beer.....

Mon, 05/09/2011 - 11:24 | 1255573 mayhem_korner
mayhem_korner's picture

How many oz of silver in Lord Stanley's cup?

Mon, 05/09/2011 - 14:27 | 1256312 High Plains Drifter
High Plains Drifter's picture

i don't know but i will have to admit. the hockey play off games have been exciting ......i hate the north american hockey habit of dumping the puck into the defensive zone and then going in and digging it out from the boards. i get tired of watching that. the soviets did not do that when they played the americans. they were about control and crisp passing and setting up for the goal but when nhl players approach the blue line they dump it in almost everytime , instead of trying to outmaneuver the opposing players.

Mon, 05/09/2011 - 11:09 | 1255515 Dr. No
Dr. No's picture

Another vehicle for greater fool theory.  Sprott is buying a pile of goods and then selling paper membership into the pile.  Although he uses the word "investor", if you break it down, he is simply asking people to trust him that there is a pile of goods somewhere and that if you exchange your money for membership, one day you can sell your membership and get money in return.  Dont get me wrong, this is not unlike 99% of all other "investments" out there.  I just dont see how this new product is different from SLV, GLD, FXY, and so on, and so on.  Sprott is a genius, no doubt he will get rich.  I bet it is alot easier to do an IPO on a stack of metal than seekout a potentially profitable company and issue an IPO.  Thos whole thing is corrupt, Sprott is just suckling at the teat.

I would encourage the small investor, who is interested in silver, buy bullion from a dealer and sell individual bars on e-bay.  There is a margin with that strategy.  Plus you will have some inventory at all times.  No need to trust someones promise.

Mon, 05/09/2011 - 11:14 | 1255527 gordengeko
gordengeko's picture

"I just dont see how this new product is different from SLV, GLD, FXY, and so on, and so on."

You just don't get it then.  You must not know much about JPM.

Mon, 05/09/2011 - 11:21 | 1255562 Dr. No
Dr. No's picture

What dont I get?  If you buy a Security, you exchange $$ for a promise.  One day, hopefully you can find someone who is willing to buy that Security from you for a greater amount of $$.  Some securities show greater potential than others.  Your comment about JPM?  Are you refering to JPM short silver?  First, dont be nieve.  JPM will not loose.  Now, is there potential silver will go up becasue of JPM?  Perhaps.  Once again, hopefully you can find someone to buy your shares for more than you bought them.  Shares of a security sold on an exchange will not settle private debts. At least with physical, you could barter in a pinch.

Mon, 05/09/2011 - 11:30 | 1255604 gordengeko
gordengeko's picture

This game is too entrenched to change.  By game I mean fiat monetary system.  Everything is valued on paper, everything.  Too may "professionals" have a vested interest in keeping the game afloat by having the masses buy into said products/securities.  Yeah I tote physical and yeah I am a pessimistic optimist but do I honestly believe the game will completly change.  NO.  It will devolve/transmute into some other form of a game where the ones with knowledge will always take advantage of whatever system they incorporate.  Unless we all get flushed with a giant reset button, kinda like those atlantians we are told never existed.  I do think silver price will rise and I'd like to think sprott is more honest than JPM.  Even though I don't know him.

Mon, 05/09/2011 - 11:38 | 1255647 Dr. No
Dr. No's picture

I think we are in agreement.  I just think that people who buy into ETFs because they think a physical pile in a secret vault has greater protection over a paper fund, have not thought it through.  Use an ETF as a trading mechanism, thats all it is.  Got to go, busy trading in and out of paper securities to increase my digital $$.  Take care.

Mon, 05/09/2011 - 11:48 | 1255701 disabledvet
disabledvet's picture

actually i am "yes with Dr. No" here.  "if the dollar is becoming worthless then aren't the GLD and SLV getting deals of a lifetime"  they pay for their silver and gold with MASSIVE amounts of our worthless money.  i do agree "market rules apply" and i imagine "so do government rules" which one day might decide they really, really, REALLY want all that gold and silver.

Mon, 05/09/2011 - 11:12 | 1255529 High Plains Drifter
High Plains Drifter's picture

has he ever displayed a picture of a bunch of guys standing around in a vault somewhere, with pallets of gold everwhere? of course this would give all of the shareholders a bit of relief from their nervousness about such issues, no?

Mon, 05/09/2011 - 11:49 | 1255705 disabledvet
disabledvet's picture

right up until the Army trucks arrive and take it in broad daylight.

Mon, 05/09/2011 - 12:56 | 1255971 Temporalist
Temporalist's picture

Really the U.S. military will invade Canada to take Sprott's silver?

Mon, 05/09/2011 - 13:07 | 1256007 Dr. No
Dr. No's picture

Really the US is the only country in the world with a military?

Mon, 05/09/2011 - 11:53 | 1255729 Bay of Pigs
Bay of Pigs's picture

I do believe they have independent audits done on a regular basis.

I can also tell you that Sprott and Embry have stellar reputations in Canada and elsewhere. Pretty hard to convince those who are skeptics on everything. I can't say I blame them watching this shit show in the markets.

Mon, 05/09/2011 - 12:21 | 1255842 Common_Cents22
Common_Cents22's picture

What are the profit margins if one were to buy 'bulk' and resell on ebay/craiglist in smaller lots?

Mon, 05/09/2011 - 13:04 | 1255994 Temporalist
Temporalist's picture

That depends on how much you buy (bulk discount) and at what price you buy it and sell it doesn't it?  And don't forget that ebay charges a fee.  If all things were equal, meaning that if you bought in bulk and sold all in the same day, I'd guesstimate you could make 4-5%.  One factor though is how you break up the smaller lots because that could also potentially provide a bulk discount.  And something else to consider is people have limits to the amounts they can buy via credit card and paypal through ebay although personal checks can be used not many like that form of payment because of potential non-payment even though it is direct depoist into an personal account and doesn't need the additional step of transferring it out a paypal account. 

 

I could be wrong but those are some things to consider.

Mon, 05/09/2011 - 11:08 | 1255520 Yohimbo
Yohimbo's picture

with all of these physical holding funds I'd like to see 3rd and 4th party

auditors.Trust noone with wealth!

Mon, 05/09/2011 - 11:13 | 1255524 High Plains Drifter
High Plains Drifter's picture

when the music stops, they will all look for a chair to sit in.

Mon, 05/09/2011 - 11:12 | 1255521 High Plains Drifter
High Plains Drifter's picture

hey sprott. quit being a pig. make sure hong kong has plenty of inventory to back up their paper products....

Mon, 05/09/2011 - 11:30 | 1255603 Josh Randall
Josh Randall's picture

LOL -- don't bogart all the Silver, Dude

Mon, 05/09/2011 - 11:20 | 1255555 lieutenantjohnchard
lieutenantjohnchard's picture

bought a ford 150 payload of pslv coupled with a ford f 250 payload of phys last thursday.

Mon, 05/09/2011 - 11:19 | 1255563 High Plains Drifter
High Plains Drifter's picture

is that 1/2 ton or 3/4 ton?

Mon, 05/09/2011 - 11:26 | 1255588 lieutenantjohnchard
lieutenantjohnchard's picture

1/2 ton and 3/4 ton respectively, metaphorically speaking. i didn't actually buy that much of course. wish i had the dough to do it though.

Mon, 05/09/2011 - 11:20 | 1255556 cool21
cool21's picture

Sprott will advise everbody to sell during the next bankster kartel raid...

Mon, 05/09/2011 - 11:21 | 1255560 SheepDog-One
SheepDog-One's picture

'Oil under $100' new normal didnt last long.

Mon, 05/09/2011 - 11:21 | 1255571 High Plains Drifter
High Plains Drifter's picture

insiders skinned a lot of hedge funds with this move. a nice pay day for someone.

Mon, 05/09/2011 - 11:21 | 1255575 Argentum
Argentum's picture

Is Sprott cornerning the silver market - legally?!?!

Mon, 05/09/2011 - 13:03 | 1256004 Temporalist
Temporalist's picture

No but he sure is helping to add pressure to the physical supply flow.

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