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Sprott Physical Gold Trust Announces Follow On, Will Sequester Another $300 Million In Physical; PSLV Next?

Tyler Durden's picture




 

It's a good thing that unlike the silver market, which continues to be in backwardation (see chart), the gold market is fully supplied. Otherwise the just released news from Sprott Asset Management that his Physical Gold Trust (PHYS) is pursuing a $300 million follow on would finally send gold breaking out to $2,000, where it will be sooner or later anyway. Amusingly, contrary to various other blogs' expectations that Sprott is top ticking the market with selling shareholder shelf statements, Sprott is doing just the opposite: "certain funds managed by Sprott Asset Management LP, have agreed to purchase no less than $115 million of Units in this Offering." So yeah, no top tick here. Still, the news that Sprott is about to mop up another $300 million in physical gold from the market will likely send gold quite higher. It appears to have already had an impact on silver, which jumped by $20 cents to another 31 year high on the news, as the market now likely expects a follow on offering in PSLV as well imminently.

The press release

TORONTO, ONTARIO--(Marketwire - 04/04/11) - Sprott Physical Gold Trust (the "Trust") (TSX:PHY.U - News)(NYSE:PHYS - News),
a trust created to invest and hold substantially all of its assets in
physical gold bullion and managed by Sprott Asset Management LP,
announced today that it has launched a follow-on offering of
transferable, redeemable units of the Trust ("Units") in an aggregate
amount of up to $340 million at a price of $12.54 per unit (the
"Offering"). Certain lead investors, including certain funds managed by
Sprott Asset Management LP, have agreed to purchase no less than $115
million of Units in this Offering.

The Trust will use the net
proceeds of this Offering to acquire physical gold bullion in accordance
with the Trust's objective and subject to the Trust's investment and
operating restrictions described in the prospectus related to this
Offering. Under the trust agreement governing the Trust, the net
proceeds of the Offering per unit must be not less than 100% of the most
recently calculated net asset value per Unit of the Trust prior to, or
upon determination of, pricing of the offering.

The Units are
listed on the NYSE Arca and the Toronto Stock Exchange under the symbols
"PHYS" and "PHY.U", respectively. The Offering will be made
simultaneously in the United States and Canada by Morgan Stanley and RBC
Capital Markets.

 

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Mon, 04/04/2011 - 19:58 | 1134969 iDealMeat
iDealMeat's picture

Let's front run him..  or follow him..  fuk it..  just buy.. 

 

Mon, 04/04/2011 - 20:14 | 1135032 unwashedmass
unwashedmass's picture

 

standing O here for sprott making this announcement while Bennie Boy is on stage and speaking, sprinkling more of his fairy dust.....

and JPM doing its best assist to try and take the metals down for Bennie....

go SPROTT!!!!!!!!

love to see the metals break out tonight.....right as Ben concludes his increasingly ridiculous remarks.

Mon, 04/04/2011 - 21:58 | 1135380 Robot Traders Mom
Robot Traders Mom's picture

Yep, he completely showed up big ben...how about Tyler calling kid dynamite out? that is straight-running owned! i haven't seen him lurking around here in awhile...

Tue, 04/05/2011 - 14:45 | 1138020 KidDynamite
KidDynamite's picture

dupe post deleted

Tue, 04/05/2011 - 14:44 | 1138023 KidDynamite
KidDynamite's picture

not sure what you're talking about.  I never made any mention of Sprott or anyone else top-ticking the price of silver or gold. Rather, the PSLV premium to NAV.  It's not a very hard concept, so you should still be able to grasp it.

 

Mon, 04/04/2011 - 23:26 | 1135569 HyperinflatmyNutts
HyperinflatmyNutts's picture

I agree Go Sprott!!  The Boys over at Sprott Asset Management see the writing on the walls.  As for Small Bennie Boy The pint size Bankster and the corrupt Private company called "The Creature from Jekyll Island" ( thank you Mr Griffin) they will continue to spew there propaganda through there Spin machine ( oh ya it was once called the free press).   Here is the skinny  Gold $1800 by the end of the year, Silver $50, and as the original Mr Gold ( Jim Sinclair)  would say QE TO INFINITY!!!!!!!!! 

Mon, 04/04/2011 - 20:16 | 1135033 unwashedmass
unwashedmass's picture

 

standing O here for sprott making this announcement while Bennie Boy is on stage and speaking, sprinkling more of his fairy dust.....

and JPM doing its best assist to try and take the metals down for Bennie....

go SPROTT!!!!!!!!

love to see the metals break out tonight.....right as Ben concludes his increasingly ridiculous remarks.

Mon, 04/04/2011 - 20:46 | 1135130 Thomas
Thomas's picture

I noticed that the nooner with Blythe, usually fairly rough for the PM crowd, was remarkably tame today.

Mon, 04/04/2011 - 22:56 | 1135508 OldPhart
OldPhart's picture

What is $20 cents?  Wouldn't that be $0.20 or 20¢ for clarity?

Tue, 04/05/2011 - 00:43 | 1135724 FeralSerf
FeralSerf's picture

300 million is chicken feed in the gold market.  Try 300 billion if you really want to make an impact.

Tue, 04/05/2011 - 09:05 | 1136275 PeaBird
PeaBird's picture

300 million usd's in gold terms is just under 6 1/2 metric tonnes at the current paper price of 46,171.00 per kg. But since this is a physical purchase, add about a 3% premium to that price (if you're lucky), and that would make it about 47556.13 usd's per kg, so he'd get closer to around 6.2 metric tonnes for that amount of fiat.

How many entities on the planet do you know of, or think you know of, with 6.2 tonnes of unencumbered physical gold in their holdings that will sell that amount at 47556.13 usd's per kg to Mr. Sprott?

Ben Ali from Tunisia only has 1.5 tonnes, so he doesn't even qualify as a potential seller. Do you reckon Muburak or Qaddafi will sell that amount? hahaha

And you talk about 300 billion worth of gold? WTF? That's 6500 tonnes dude !!!

More than what most sovereigns would have...who & where do you think sellers will show up, in the middle of an 11 year secular bull market, that will sell 6500 metric tonnes of gold at 47556.13 per kg? Nowhere...that's where...not at these prices.

Please get a grip on reality. Six and a half tonnes of unencumbered physical gold for immediate delivery is NOT chicken feed to source in this market. And you think Six thousand five hundred metric tonnes will even be for sale? At these prices? C'mon...get real !!!

Mon, 04/04/2011 - 19:57 | 1134970 Bay of Pigs
Bay of Pigs's picture

Gold breakout imminent. Silver already there...

Fly, baby, fly.

Mon, 04/04/2011 - 20:02 | 1134988 Pool Shark
Pool Shark's picture

 

Gold = finite

Silver = Finite

FRN's = infinite

 

Any questions?

Mon, 04/04/2011 - 20:14 | 1135035 Bay of Pigs
Bay of Pigs's picture

This is a great looking chart. Trader Dan also provides excellent commentary when it comes to PM's.

http://traderdannorcini.blogspot.com/2011/04/silver-8-hour-chart-update_04.html

 

Mon, 04/04/2011 - 20:30 | 1135082 Hephasteus
Hephasteus's picture

Dollar should be puking lungs by april 15th and shitting it's liver in the toilet by april 30th.

Mon, 04/04/2011 - 21:11 | 1135209 Pool Shark
Pool Shark's picture

 

The real March Madness:

http://cnsnews.com/news/article/march-madness-feds-spent-more-eight-time

Fed's spent 8 times more in March than they took in from revenues!

Dollar is being dumped onto the cart as we speak; all the while groaning: "I'm not dead yet; I feel happy; I want to go for a walk..."

Like something out of a Monty Python sketch... 

 

Mon, 04/04/2011 - 21:33 | 1135289 Hephasteus
Hephasteus's picture

It's sad but it's funny. The fed is buying every police force in the nation big ass gas guzzling brand new GM's while trying to ressurrect it's stupid green movement scam just to keep GM afloat.

Mon, 04/04/2011 - 21:39 | 1135314 SilverRhino
SilverRhino's picture

+1 for the report.  That is just insane.

Mon, 04/04/2011 - 21:40 | 1135318 SilverRhino
SilverRhino's picture

+1 for the report.  That is just insane.

Mon, 04/04/2011 - 21:12 | 1135215 disabledvet
disabledvet's picture

I GOT A QUESTION!  I GOT A QUESTION!  If radioactive material is so finite how can we possibly have a problem with having too much of it?

Mon, 04/04/2011 - 21:22 | 1135252 Freddie
Freddie's picture

+1

Kudos.  This is about the simplest explanation to what is going on.  Good job.

Mon, 04/04/2011 - 19:57 | 1134972 Stoploss
Stoploss's picture

Yeah, baby..

Mon, 04/04/2011 - 20:00 | 1134976 dark pools of soros
dark pools of soros's picture

Let's Get Physical Bitchez

Mon, 04/04/2011 - 21:12 | 1135218 Fenlander
Fenlander's picture

I smile when I think of that song.  It brings back my youth, and a testosterone fuelled attraction to Olivia Newton John:

 

"Let's get physical, physical, ooohh I want to get physical, yeaaahhh..."

Mon, 04/04/2011 - 22:29 | 1135441 DoChenRollingBearing
DoChenRollingBearing's picture

Yeah, my testosterone levels were definitely high enough to make Olivia a dream girl back in the day...

Mon, 04/04/2011 - 20:00 | 1134977 Alert
Alert's picture

Wow.  This is the best news so far this month!  Burn HSBC and JPM! Burn!

Mon, 04/04/2011 - 20:09 | 1135004 FLUSA.com
FLUSA.com's picture

and we are only 4 days in!!!!

Mon, 04/04/2011 - 20:01 | 1134981 silvertrain
silvertrain's picture

I hope the IMF is taking notes..Every since that episode where they backed out on him and he threatened em with a bazooka he has been on a mission...

On a side note, Read this shit right here...

http://finance.yahoo.com/news/College-Plans-You-Thought-nytimes-19416526...

Mon, 04/04/2011 - 20:01 | 1134983 bania
bania's picture

Tyler, don't forget CEF.  They were first with a $300 Million+ offering 10 days ago.

Mon, 04/04/2011 - 20:31 | 1135087 justbuygold
justbuygold's picture

Agreed.   Central Fund did tap the market for over $300 MM less than 10 days ago.   Half of that amount went to buy about 4MM ounces of Silver, the rest to buy gold.  Note how silver has jumped since that announment.

Conversely Sprott only needs to buy $185 MM worth of gold .  The rest is just a paper swap.  He swaps his gold in other funds over to the gold fund and hands them back paper.  Kinda smells rotten doesn't it.   Even more rotten smelling was that he did the same thing with his silver fund PSLV.  He swapped about $285 MM of paper out of the $500 MM to his own funds.  Nice way to double dip on performance and Mer/admin fees.

Much less of a Sprott fan after all these paper games. Now sticking with Central Fund along with Central Fund's all silver play, Silver Bullion Trust.

Better run, more trustworthy, no paper games, and lower MER's. 

 

 

Mon, 04/04/2011 - 22:04 | 1135397 KidDynamite
KidDynamite's picture

@Justbuygold - can you please shoot me an email here: http://kiddynamitesworld.com/contact/

i have a question for you.

thanks

Mon, 04/04/2011 - 23:12 | 1135535 justbuygold
justbuygold's picture

KidDynamite.  See these posts.

 

http://www.zerohedge.com/article/eric-sprotts-double-barreled-silver-iss...

and also the posts that follow.  Maybe that answers your questions. 

Tue, 04/05/2011 - 11:05 | 1136827 KidDynamite
KidDynamite's picture

yeah - i'm aware of your views, and I think you're correct. wanted to talk to you off-forum about it though

Mon, 04/04/2011 - 20:02 | 1134989 SWRichmond
SWRichmond's picture

I am glad I didn't hold back, but DCA'd into silver starting at about $14 and had finished most of my buying at $17.50.  Silver been berry berry good to me.

There are people over at Goldismoney that claim to have cashed out their IRAs, taken the tax hit, and put it all into silver at $6. 

Mon, 04/04/2011 - 20:10 | 1135018 lunaticfringe
lunaticfringe's picture

I say bullshit. When it was at 6, none of the conditions existed that would portend taking a 30% tax and penalty hit or greater. I remember well. I was there. I cashed out in early 2009 and starting slipping in around 20. Always love to hear these fables...delivered ex post facto by delusional egos.

Mon, 04/04/2011 - 20:15 | 1135026 Misean
Misean's picture

Right douche. I got the receipts from 99. Of course if you were doing research, it sure as hell DID look like the time to buy. Also looked like the time for a stock market crash. But of course, no one could have seen it coming.

Mon, 04/04/2011 - 20:19 | 1135044 unwashedmass
unwashedmass's picture

i bought my first silver bars at six.....have the receipts and all...and frankly, i still remember opening up the box, looking at it, and thinking, i'm either going to be very, very right, or feel like the biggest horse's ass in the world in five years.....

and how long ago was this? long enough that i had one sitting on my desk, propping my key board for two years before i started using safe deposit boxes.......

not one person who walked in my office asked what it was or knew what is was....don't think that would be different now....which is why silver is going to keep going....

much further.

Mon, 04/04/2011 - 20:39 | 1135115 data_monkey
data_monkey's picture

If/when the banks shut down, how do you get your silver out of the safe deposit boxes?

Mon, 04/04/2011 - 21:47 | 1135343 Mr Anderson
Mr Anderson's picture

You take it out now and make sure you have a safe. Or bury it in the back 40. Whichever you prefer.

 

 

Mon, 04/04/2011 - 23:25 | 1135565 gosseyn
gosseyn's picture

Use a non-bank storage facility now, not a bank owned safety deposit box.  Most larger cities have privately owned vault storage companies.  They are usually opened 24/7/365, thus allowing box holders access.

Tue, 04/05/2011 - 00:03 | 1135646 data_monkey
data_monkey's picture

Thank you.

I would hope that someone with the smarts to buy silver bars @ $6 would have the sense not to put their trust in the banks that helped get it to the $38 it's at today. Don't you read this site?

FOR THE LOVE OF GOD PEOPLE, don't put your PM's in safety deposit boxes! It is not what the name implies.

Mon, 04/04/2011 - 21:18 | 1135238 Jreb
Jreb's picture

ROTFL! That's a familiar story.

Mon, 04/04/2011 - 20:19 | 1135038 Gold 36000
Gold 36000's picture

There were some of us following the conspiracy blogs in the late 90's.  Also how could you not stock up on silver and gold at historic lows?

Buying at 20 sounds like you are a mo mo investor.

Buy when you are a real contrarian and not just an alienated hanger-on late to the party.  There were people who sold their houses in the late 90's and early 2000's also because housing prices were clearly unsustainable.  These oddballs were written up in various news articles.  I know several oddball freakazoids who cashed out their IRA's in the late 90s and bought a bunch of silver to bury along with their guns and wheatberries.  I believe many of the stories are true, but probably there are a few just wanting to brag about their fantasy trades.

Yes indeed the conditions existed that could warrant taking the risk.  Richard Russell has always said it is inflate or die.  No government will ever take the deflationary cure any more.  that is tradeable information for those who know the truth about governments and credit cycles.

Mon, 04/04/2011 - 20:33 | 1135088 tmosley
tmosley's picture

Yeah, most of us have been talking about our silver positions for years.  Hell, some butthurt gay stalkers of mine went around the entire internet and found my posts to that effect, while trying to prove that I was a "liar" or some stupid shit.

You divest yourself of silver, you deserve what you get.  End of story.

Tue, 04/05/2011 - 08:36 | 1136167 fiftybagger
fiftybagger's picture

lolz. I been buying since under 4 dollars.

Silver For The People

http://www.youtube.com/user/BrotherJohnF?feature=mhum

Mon, 04/04/2011 - 20:20 | 1135051 Twindrives
Twindrives's picture

Good move.  I did the same when silver was at 16.00. 

Mon, 04/04/2011 - 20:09 | 1134995 FLUSA.com
FLUSA.com's picture

To the tune of Conan O'Brien's "In the Year 2000"

Gold $2000...this year Gold $2000

Mon, 04/04/2011 - 20:12 | 1135016 yabyum
yabyum's picture

Pslv has been the best paper product I haver ever owned....tanks, tank you;)

Mon, 04/04/2011 - 20:13 | 1135021 Gold 36000
Gold 36000's picture

Gold 36000

This is a new era.  The old rules no longer apply.

This time it really is different.

Mon, 04/04/2011 - 22:33 | 1135449 DoChenRollingBearing
DoChenRollingBearing's picture

+ $25,000 at least.

+ $55,000 quite possible.

Mon, 04/04/2011 - 20:24 | 1135067 UP4Liberty
UP4Liberty's picture

Buy the physical and hold.

China and India have put a floor on this one...and as the helicopter hovers and the printing presses run...when the shite hits the fan...gold and silver will be #1!

Mon, 04/04/2011 - 21:55 | 1135364 Mr Anderson
Mr Anderson's picture

Cattle, chickens, Pigs, Wheat, Corn, WATER will be #1.

Remember. If you give a man a fish you will feed him for a day. If you teach a man to fish you will feed him for a lifetime.

Your gold will buy you some fish. But no matter how much you have you will still run out if your trading it for things you eat or consume.

If you have cattle etc, buy spare parts. If you have spare parts, purchase gold because sooner or later you'll have to get more spare parts.

 

Mon, 04/04/2011 - 22:32 | 1135453 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1430, good advice.

Mon, 04/04/2011 - 23:30 | 1135578 Hulk
Hulk's picture

Where can we get spare parts for our cattle? The Moo's out on a couple of mine and the others don't know when to get out of the way anymore!

Tue, 04/05/2011 - 16:10 | 1138396 Hephasteus
Hephasteus's picture

Those spare horns can get expensive. And well 4 stomachs. You know something is going to go wrong.

Mon, 04/04/2011 - 20:38 | 1135106 dryam
dryam's picture

The Bernank is getting ready to lose control of this out of control bus.  The question is not how high gold/silver will go.  The question is how low will the USD go.  I think it'll lose about 80+% of it's current value over the next 10 years.

Mon, 04/04/2011 - 20:44 | 1135131 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

i know it sounds sick and quite possibly selfish, but i wish the frn dollar would just roll over, puke it's guts out and die in the next ten days!  the suspense has been killing me!

Mon, 04/04/2011 - 20:59 | 1135167 Road_Scholar
Road_Scholar's picture

I agree, but it's very tough to calculate the inverse relationship of $USD v. $Gold.  Do you think $USD of 65 should equal about $1800 gold?  Maybe with both markets being rigged there is no way to get a true "relationship".  Do you have a gold target price?

Mon, 04/04/2011 - 20:38 | 1135112 Richard Head
Richard Head's picture

Why is this good news for PHYS and PSLV holders?  PHYS dropped ~1.3% today on an up day for gold. 

Mon, 04/04/2011 - 20:42 | 1135123 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

thank you eric, your efforts to remove precious metals from the hands of scumbag bankers is to be highly commended.  just be sure not to accept any of the salted bars!

Mon, 04/04/2011 - 20:45 | 1135133 Reptil
Reptil's picture

thanks TD, got some more of the shiny stuff.

 

Mon, 04/04/2011 - 20:47 | 1135140 ebworthen
ebworthen's picture

 

No, no...it's a bubble...the real money is in AIG, Citi, Enron, and Treasuries...

 

Mon, 04/04/2011 - 20:49 | 1135143 tekhneek
tekhneek's picture

I basically topped off my account when PSLV launched at about $10/share. Glad I did.

Mon, 04/04/2011 - 21:00 | 1135180 treemagnet
treemagnet's picture

What can a guy do in a 401K - you can't go physical......so I'm supposed to buy a piece of ponzi GLD or SLD? 

Lets hear it, I'm all ears.....I said, I don't know....so instead of my view(s), I want....yours (head down in shame).

Mon, 04/04/2011 - 21:05 | 1135197 Road_Scholar
Road_Scholar's picture

How about mining companys or ETFs like GDX, GDXJ, or SIL?  Hopefully, less BS if it's ownership in a company with mineral ownership.  At least somebody owns something?!  I'm certainly open for ideas?  How do you play agriculture besides having a grain bin in the back yard?

Mon, 04/04/2011 - 21:45 | 1135333 SaveTheBales
SaveTheBales's picture

We can borrow from our 401k. 

When it blew up in 08, and I discovered that I could actually get the check to arrive in the mail, I borrowed the max (got laughed at, too), and bought metals for myself and dear ole Mom.  Mom is a pretty happy gal these days.  Go figure.  (Note to ZH: Mutha Bale thanks you).

If you can't borrow, sometimes you can roll it over.  Sometimes you have to quit your job.  Had it gotten much worse, I woulda done just that.  There's little point in working, if they are paying you in pesos.

Peace.

 

Mon, 04/04/2011 - 22:01 | 1135381 Mr Anderson
Mr Anderson's picture

cash out, take the hit. Feel the sting, when the market drops 40% the sting turns into a fuzzy feeling.  Many of the ZH community felt that fuzzy feeling in 08-9.

 

Mon, 04/04/2011 - 22:05 | 1135394 jkruffin
jkruffin's picture

Indeed, we are allowed to borrow in our 401k accounts as well, and I took 50% of mine early 2009.  The best part of it is that the interest you pay, you are paying back to yourself. All the money goes back each month you payment is deducted with the interest.  It's a risk free, interest free loan.  The bankers get ZERO!!!

Mon, 04/04/2011 - 22:13 | 1135415 Mr Anderson
Mr Anderson's picture

Wish I knew this b4 cashing out. The world is still to Messed up to play. After watching Enron (smartest guys in the world) and seeing how they shut her down and cashed out leaving my neighbors who work for PGE (Portland General Electric) with NO retirement.

 

Mon, 04/04/2011 - 22:41 | 1135475 SaveTheBales
SaveTheBales's picture

Because I only needed half of what I borrowed to insure my 401k and other savings (an agreeable side-effect of being disgustingly average), and I had visions of gas prices going somewhere between annoying and pentecostal, I um, also bought a StreetGlide.  Harley wants about 10%.  SaveTheBales Savings & Loan takes 4.25, and they give it back to me when they are done with it.  Neither Harley nor the Morgue were willing to be so kind.  I believe their last words were "and stay out!!"

So why pay THEM interest?  And if the money is going to zero, better spend it.

Besides, you can't ride Cisco to the Grand Canyon.

 

Mon, 04/04/2011 - 21:06 | 1135201 Platinum_Investor
Platinum_Investor's picture

Eric Sprott is one of the honest ones.... Good Ol Toronto boy.

Mon, 04/04/2011 - 21:14 | 1135230 disabledvet
disabledvet's picture

ah, now i understand.  "toronto."

Mon, 04/04/2011 - 21:29 | 1135279 Hephasteus
Mon, 04/04/2011 - 21:20 | 1135249 AmazingLarry
AmazingLarry's picture

So if I'm still 70% equities ATM with most tied up in IRA's and about 20% physical gold and silver (10% cash)....

Do I play something like the PHYS or PSLV and get my ass handed to me by touching those IRAs? Or take the ass ramming and invest more in hard?

 

 

Mon, 04/04/2011 - 22:19 | 1135424 Mr Anderson
Mr Anderson's picture
by jkruffin
on Mon, 04/04/2011 - 22:05
#1135394

 

Indeed, we are allowed to borrow in our 401k accounts as well, and I took 50% of mine early 2009.  The best part of it is that the interest you pay, you are paying back to yourself. All the money goes back each month you payment is deducted with the interest.  It's a risk free, interest free loan.  The bankers get ZERO!!!

 

 

If you dont' wanna take the hit- look into this-

Mon, 04/04/2011 - 21:30 | 1135285 RobotTrader
RobotTrader's picture

Permabear Larry Pesavento, who has been calling for a "risk asset" crash for 6 months, is expecting a $15 down day for silver.

Yeah right......

Silver had its chance to crash during the last correction, but voracious buyers emerged.

Here's his podcast for today.

http://www.tigeruniversity.com/mp3/TWS040411.mp3

 

 

Mon, 04/04/2011 - 22:35 | 1135459 tmosley
tmosley's picture

RobotTrader was replaced by a pod person.

This is a definite improvement.

Mon, 04/04/2011 - 23:33 | 1135581 Hulk
Hulk's picture

Come on over to the shiny side Robo, come...

Tue, 04/05/2011 - 01:26 | 1135792 Richard Head
Richard Head's picture

Gimme a break.  I can't believe anyone really thinks this clown is a real trader.  All he does is spew drive-by comments, and never answers for one of them.  +1 junk, as usual.

Mon, 04/04/2011 - 21:31 | 1135286 JPMorgan
JPMorgan's picture

Go Sprott, the man with golden gun which is loaded with silver bullets.

Mon, 04/04/2011 - 21:59 | 1135375 plata pura
plata pura's picture

This Sprott bloke appears to be a proper posterity protector, going a little to large on gold in my opinion vs it's superior cousin the precious. BTW a GSR of 37.11 be intolerable.

Mon, 04/04/2011 - 22:40 | 1135465 DoChenRollingBearing
DoChenRollingBearing's picture

plata pura, the friendly Rodamiento asks you why a GSR of 37.11 (approx. where it is now) as intolerable?  I own both, but would like to see your reasoning.

Mon, 04/04/2011 - 22:06 | 1135399 Barry McBear
Barry McBear's picture

Given the supply issues facing silver right now I wonder why Eric won't add to PSLV?

A follow on in silver wouldn't be the straw that broke the camels back, more like the 200 metric tonnes that crushed the camel into paste.

 

Mon, 04/04/2011 - 22:22 | 1135429 99er
Mon, 04/04/2011 - 22:30 | 1135446 lolmaster
lolmaster's picture

short squeeze bitchez

 

altho can't imagine why anyone would buy PSLV when there's SLW to be bought. like physical but with 2.8x leverage and a lot more market manipulation

Tue, 04/05/2011 - 01:21 | 1135781 honestann
honestann's picture

SLW is a great stock and company.  However, people who want to be able to get their paws on their physical silver if need be prefer PSLV.

Mon, 04/04/2011 - 23:56 | 1135638 Stuck on Zero
Stuck on Zero's picture

I received 5 solicitations in the mail to sell gold today!  Maybe these guys work for PSLV!

I also noticed that Google lists 449,000,000 hits for "sell gold".  It lists 3,120,000 hits for "buy gold".

I would say the man in the street is more likely to be thinking about selling gold than buying!

Tue, 04/05/2011 - 00:41 | 1135721 Al Gorerhythm
Al Gorerhythm's picture

Kid Dynamite's theory about Sprott pulling a insider share sale prior to dilution just went boom! Short wick.

Tue, 04/05/2011 - 01:46 | 1135806 GoldmanSux
GoldmanSux's picture

Sprott has an open ended mutual fund mirroring PSLV to be launced within two weeks, so any follow up offer of PSLV is months away given how long these prospectuses take to clear. Beware the PSLV near term. The 20% premium on the ETF will diminish/be arbitraged as the mutual fund priced at NAV is launched in two weeks.

Tue, 04/05/2011 - 11:03 | 1136816 KidDynamite
KidDynamite's picture

do you have a link to a source on this? i saw one brief blurb in Globe and Mail a week ago, but nothing else.

Tue, 04/05/2011 - 16:04 | 1138372 GoldmanSux
Tue, 04/05/2011 - 16:24 | 1138437 KidDynamite
KidDynamite's picture

i meant a link to the announcement of a new Sprott fund.

Sat, 04/09/2011 - 21:57 | 1154231 thames222
thames222's picture

I can't wait for gold to hit $2,000.  Sprott, thanks for boosting my assets' value even more!  Loving it, and loving the silver rage lately.  let's get that money, boys!

 

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