Sprott Sells $35 Million Worth Of PSLV Across Different Funds In Week Between April 18 And April 25

Tyler Durden's picture

In addition to all the already highlighted factors (margin hikes, Cramer buy recommendations, Chinese slowdown concerns, etc.) another possible reason why silver holders (at least of the recent variety, those who have been long since ~$10 could not care less) recently have had a difficult time with estabilishing positions in a suddenly very volatile silver market, is that according to a recently released 13-D by Sprott Asset Management, the head of the world's first silver physical ETF has taken profits on over 1.6 million shares of PSLV, across various funds, for total proceeds of just over $35 million, including up to $6.4 million for personal gain by Sprott.

The table below summarizes the sales, which occured between April 18 and April 25:

And the chart below shows precisely where Sprott sold based on the performance of PSLV over the past two weeks:

So the default question: is Sprott top ticking the market, or is he merely locking in physical courtesy of the premium arbitrage? At last check PSLV was trading at about 16% over NAV. Will the continuing interest in physical force PSLV to issue more shares or will the synthetic arbitrage persist? We hope to find out soon enough, as well as to get Sprott's thoughts on whether or ont other looking at his actions should get the impression upside is now capped.