Will Sprott's Brand New Physical Silver Trust Become JPMorgan's Biggest Nightmare?

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Wed, 07/14/2010 - 15:21 | 468899 Tarheel
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30% over NAV? Where did u find that Tyler? I thought paper gold was undervalueing physical gold?

Wed, 07/14/2010 - 15:40 | 468974 KevinB
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Did you read the article? The Sprott trust only holds physical gold, and you can redeem shares for actual metal. Sprott is the closest thing to physical out there that isn't actually bullion in your hands.

Wed, 07/14/2010 - 15:58 | 469038 Pladizow
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I think min redemption in physical = $250K

Wed, 07/14/2010 - 16:20 | 469111 Temporalist
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"An investor in the fund may take physical delivery of a minimum of one 400 ounce bar by contacting the fund on the 15th of each month outlining the details of the delivery request including number of bars and so forth. It’s up to the holder to make arrangements for delivery and this can be cumbersome. However, an investor may opt to arrange with Brinks or another armored car service to pick-up the gold and transfer it to another storage provider who will take and hold London Good Delivery bars. Currently this might cost $2500 per bar which isn’t that costly given prevailing value of a bar at around $450,000. Or, if you’re feeling man enough, you can pick bars up yourself and toss them in the trunk of your mini. Um, bring your shotgun."

http://seekingalpha.com/article/191745-phys-another-golden-choice-for-in...


Thu, 07/15/2010 - 12:46 | 471287 Amish Rake Fighter
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Anyone who says JP Morgan is one of the lead underwriters is a fucking liar 

 

I'm not replying to your post Temporalist, just making sure that people see this

Wed, 07/14/2010 - 16:25 | 469131 DosZap
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Kevin,

When it started, the Prospectus limited withdrawal of physical MINIMUM, 400oz. Bar.

Wed, 07/14/2010 - 22:50 | 470085 justbuygold
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Actually Central Fund's " Silver Bullion Trust " is the closest thing to physical.  They were first out of the gate and have the lowest admin fees of any silver fund in the world.  Trades on TSX as  SBT.un

Thu, 07/15/2010 - 08:23 | 470565 SWRichmond
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That is, of course, assuming one has access to TSX.

Wed, 07/14/2010 - 15:23 | 468903 Spitzer
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I hope Eric Sprott and Andrew McGuire have good life insurance policies

Wed, 07/14/2010 - 15:41 | 468977 bigdumbnugly
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if you listen closely you can already hear the phone ringing at the "Dirty Deeds done Dirt Cheap, Inc." front desk.

Wed, 07/14/2010 - 15:52 | 469011 outamyeffinway
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Go cower in fear elsewhere.

Wed, 07/14/2010 - 15:57 | 469030 Spitzer
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huhu, good one

Le Metropole Members,

On March 25th at the CFTC Public Hearing on Precious Metals GATA made a dramatic revelation of a whistleblower source, Andrew Maguire, who has first hand evidence of gold and silver market manipulation by JPMorganChase and who has even tipped off the CFTC in advance of manipulative attacks on gold and silver. Just as in the Madoff case the regulator has done nothing to stop such manipulation.

On March 26th while out shopping with his wife, Mr. Maguire's car was hit by a car careening out of a side road. The driver of the vehicle then tried to escape. When a pedestrian eye-witness attempted to block the driver's escape he accelerated at him and would have hit him had the pedestrian not jumped out of the way. The car then hit two other cars in escaping. The driver was apprehended by the police after police helicopters were called in and following a high speed chase.

Andrew and his wife were hospitalized with minor injuries. They were discharged from hospital today and should make a full recovery.

Wed, 07/14/2010 - 16:21 | 469114 Temporalist
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And there has been no news since.  The police will not comment either.

Wed, 07/14/2010 - 17:06 | 469289 WeeWilly
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What color were those helicopters, Spitz?

Wed, 07/14/2010 - 18:53 | 469575 Spitzer
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My first comment was just a half assed joke.

I was just pointing out that these 2 guys are playing chicken with JPM and one of them got hit by a car.

Do I really think JPM ordered the hit ? not really

Thu, 07/15/2010 - 00:08 | 470224 strannick
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Those guys, along with Tyler Durden are frickin legends. Never mind 'Dirty Deeds Done Dirt Cheap' cause they'll be blaring "Big Balls' themselves. These guys are the Andrew Jacksons of our time. Air fives to all of you

Wed, 07/14/2010 - 15:27 | 468905 SWRichmond
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This is a fantastic idea and I genuinely hope it is one that will hasten the day of reckoning for the silver manipulators.  I'd like nothing better than to see JPM totally financially destroyed, even if it means (as I know it would) the possibility of printing of Trillions of new dollars and the certainty of a declaration of force majeure.  Reality is the only path to recovery here, and only breaking the oligarchy can cause reality to come to the fore.  Let the people see what's really going on.

I will be buying and holding for my retirement accounts.

Wed, 07/14/2010 - 15:56 | 469026 DoChenRollingBearing
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This may be just the thing to get silver roaring.

From what I read, there are fewer physical ozs of Silver "above ground" than ozs of Gold.  But, with Silver at +/- $18, it would not take too much money to buy up a substantial amount.  And Silver is used, and not all that is / can be recycled.

Sprott may have just lit the fuse that sends Silver way up.  Sprott the man.

Wed, 07/14/2010 - 20:41 | 469827 Turd Ferguson
Turd Ferguson's picture

+++

I love Eric Sprott. If you haven't already signed up for his newsletters, I suggest you visit his site and get it done. Great, great stuff.

Sun, 07/18/2010 - 18:37 | 476293 TheGoodDoctor
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Are they free?

Wed, 07/14/2010 - 15:25 | 468912 Ragnarok
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Awesome.

Wed, 07/14/2010 - 17:12 | 469309 thesapein
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+1

Wed, 07/14/2010 - 15:25 | 468913 maff
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Of course you guys have all been following the massive outflow of physical silver from the comex recently? 

Wed, 07/14/2010 - 15:38 | 468963 nmewn
nmewn's picture

Yep.

196,148oz. ...yesterday...alone.

 

Wed, 07/14/2010 - 15:42 | 468982 AR15AU
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LINK PLEASE!!!  THANK YOU

Wed, 07/14/2010 - 15:49 | 469002 nmewn
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He has done a very good job of evaluating the proceedings so far.

Regards.

http://harveyorgan.blogspot.com/

COMEX Warehouse Stocks July 13, 2010       Today we saw a massive drain of comex silver to the tune of 196,148 oz.   On top of that, there was another of those special announcements which saw an internal transfer of 130,000 oz from the customer inventory into the dealer inventory.  This is a lease and we have no idea what the customer received for that lease. 
Wed, 07/14/2010 - 15:58 | 469041 JLee2027
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300,000 more ounces of silver reported out today.

As this been going on for a couple weeks - a run "on the bank" is underway.

Wed, 07/14/2010 - 16:14 | 469089 nmewn
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It appears so.

However, I long ago lost faith in accounting...I generally err on the side of caution and take delivery in physical, but I do own some PHYS shares.

 

 

Wed, 07/14/2010 - 15:57 | 469023 JLee2027
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Silver Stocks on the bottom of this page.  It's updated every day about 3PM EST.

http://www.cmegroup.com/trading/energy/nymex-daily-reports.html

But remember, this is Crimex we are talking about and these numbers are unaudited.  No one knows how much metal they really have.  

 

Wed, 07/14/2010 - 16:28 | 469138 DosZap
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The Mugambo Guru, link at post bottom of page.

From SLV

"since February 26, “17.9 million ounces…have been withdrawn from the ETF by authorized participants.”

Wed, 07/14/2010 - 16:53 | 469236 DoChenRollingBearing
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1000 of those ounces were mine...  Took the paper profit, will never buy a PM ETF ever again.

Wed, 07/14/2010 - 19:41 | 469677 DosZap
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Do,

I knew you were a smart cookie....LOL

Wed, 07/14/2010 - 15:29 | 468929 Internet Tough Guy
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As long as he takes delivery and doesn't use leverage, he can break them.

Wed, 07/14/2010 - 15:36 | 468955 Dr. No
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See "Bunker Hunt"

Wed, 07/14/2010 - 15:42 | 468981 Internet Tough Guy
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Not sure if you are agreeing or disagreeing with me. The Hunts did break the bagged silver contract, and it never traded again.

Wed, 07/14/2010 - 15:51 | 469007 Dr. No
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I guess I am saying dont hold your breath the manipulators will be exposed.  The rules of the game will be changed if things get out of hand. The FED is an old hat.

From http://www.buyandhold.com/bh/en/education/history/2000/hunt_bros.html

" Once the silver market was cornered, outsiders joined the chase but a combination of changed trading rules on the New York Metals Market (COMEX) and the intervention of the Federal Reserve put an end to the game. The price began to slide, culminating in a 50% one-day decline on March 27, 1980 as the price plummeted from $21.62 to $10.80. "

Wed, 07/14/2010 - 15:57 | 469031 Internet Tough Guy
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I understand your point, and if he were playing the paper game I would agree with you. The Hunts were successful when they took physical silver. They were broken when they tried to use leverage in paper silver. I am sure Sprott knows this and won't play their game.

Wed, 07/14/2010 - 16:01 | 469050 JLee2027
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Exactly.  They can change the rules in a paper market all they want. If you hold the Physical metal, it won't matter.

Wed, 07/14/2010 - 19:14 | 469618 Freebird
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Hey we got that % drop in the last meltdown -18 bucks something down to 9. I was on that train.

Wed, 07/14/2010 - 15:51 | 469009 Cognitive Dissonance
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I suspect "he" won't break anyone. Because when this begins to get out of hand, the "National Security" card will be pulled out along with a few Jokers and Sprott and investors will be handed physical fiat and ordered to hand over their physical Gold and Silver.

We really can't be thinking these Powers That Be Ponzi guys will just hold up their hands and surrender, do we? Really?

Wed, 07/14/2010 - 15:53 | 469016 Abiggs
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+1

Wed, 07/14/2010 - 16:00 | 469045 Internet Tough Guy
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In my mind, your scenario would still break the link between the paper and metal. Once you admit you can't deliver what you sell, it's over.

Wed, 07/14/2010 - 16:21 | 469109 Cognitive Dissonance
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My apologies if I came off as flippant. I didn't really think you were saying the PTB would give up easily or without a fight but I worried that some readers might take that away from your comments.

I agree that breaking the link between paper and physical is key because it exposes the scam. And I've personally purchased a large amount of Silver because I feel that physical Silver has a much smaller chance of being taken/confiscated from me than my Gold. And the Gold I purchase is in ounces or smaller, so that it will be easier to barter/exchange for goods and services on the black market that is coming soon to your local street corner.

Wed, 07/14/2010 - 16:51 | 469226 Goldust
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CD, doesn't the fact that Sprott is located in Canada provide him some protection from the US jackboots that would force confiscate in exchange for Fed TP were he here?  Were he leading a physical silver squeeze, that is...

Wed, 07/14/2010 - 18:24 | 469498 LePetomane
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The silver fund's minimum requirement for physical redemption is approximately 10,000 ounces or +/-$200,000 initial investment.  There is also an additional clause giving the Trust power to revoke physical redemptions.

Wed, 07/14/2010 - 19:45 | 469685 DosZap
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Le,

"There is also an additional clause giving the Trust power to revoke physical redemptions."

Then their ass worthless as tits on a Boar Hog.

NO different than the others.

Screw em'.............

I smell a rat, ALSO.

Wed, 07/14/2010 - 18:43 | 469551 Cognitive Dissonance
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It might. But it's clear that Canada is connected politically with the USA and if the USA demands Canada protect the USA "interests" I suspect Canada will do so. I have great respect for Canadian citizens but their government has turned a dark ugly corner over the past few years.

It also appears Canada is playing the same PM shell game so I suspect they will play along. I just don't see the international Ponzi folding without destroying those around them.

Wed, 07/14/2010 - 19:43 | 469681 DosZap
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CD,

I agree, they will do whatever their PROTECTOR tells them.........

Roll over, do tricks, you name it.

Bought,Sold, and Paid For.

Wed, 07/14/2010 - 21:07 | 469890 Arius
Arius's picture

CD - good points if i might say, but in my humble view this game will soon be over...not because of Sprott but because of 6000 years of history....government always tried but at the end....it seems the game will be over soon

Wed, 07/14/2010 - 16:26 | 469133 tmosley
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*Flagged as INSIGHTFUL*

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