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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JLee2027's picture

+100 tonnes of Silver bars

redpill's picture

OT: Meanwhile, some black swans refuse to die.




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


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.

LawsofPhysics's picture

That would suck, great surfing here.

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.

Crisismode's picture

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

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'


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

SheepDog-One's picture

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

LaughingMan's picture

Silver is priceless!!!!! 

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



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.

SheepDog-One's picture

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

Rynak's picture

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

Spitzer's picture


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.

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.

eisley79's picture

sheep is right and wrong

-price doesnt matter, its ounces


-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




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.

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.

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 ??

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).

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?

SheepDog-One's picture

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

goldfreak's picture

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

Rynak's picture

A few weeks, long time lurker before that.

eisley79's picture

drupal basic comment module = mega fail

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.




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?

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.

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!

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

tmosley's picture

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

What's wrong with that?

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.


Jonas Parker's picture

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

tiger7905's picture

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


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. 

Apophis's picture

I don't get the haters over there: 

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

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


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 MO! PM's*

*note: or rent a boat, see above.

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.

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?

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.


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.

Spitzer's picture

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

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.

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.


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.