Holy $hit! Sprott's PSLV @ 30% Over Spot!!!!!!!!!

I may not be reading that right but would that mean if it (the spot) goes too far down it will be raised (and i assume it would have to be a significant raise) to get us to sell our silver? In theory bonus for us?

(and if so, should we all still hold onto our silver maybe a further rise?)

Feel free to correct me if i have interpretted it wrong
 
SilverNash said:
I may not be reading that right but would that mean if it (the spot) goes too far down it will be raised (and i assume it would have to be a significant raise) to get us to sell our silver? In theory bonus for us?

(and if so, should we all still hold onto our silver maybe a further rise?)

Feel free to correct me if i have interpretted it wrong
Click to expand...

i think you are interpreting it correctly. sprott's etf is promised to be backed, each and every share. SLV is not. people are realizing this hence the price difference.
 
Bullion Baron said:
What possible reason would you have for buying this at a 30% discount instead of physical for a much lower premium?

No doubt if Sprott sells some PSLV into this premium spike the permabulls will (once again) be enraged by his sensible actions again :lol:
Click to expand...


Precisely! Appears to be a lot of ignorant money invested.
 
Perhaps institutional investors are finding it hard to get hold of large amounts of physical and don't trust the Comex or SLV hence the ridiculous premium of PSLV? Just one possible explanation. The other explanation is ignorant retail investors blindly bidding up the price, or chart traders bidding up the price, etc.
 
or the cost, security and insurnace is prohibitive for large qty's of silver
 
rbaggio said:
Well Sprott must be doing something right.
Click to expand...

Its an interesting point, and Sprott is nobody's fool. What's not clear to people is exactly how money flows in & out of this fund. For example, if a big money player hands 30 million to Sprott, and says, "Here manage this for me, etc..." Then Sprott themselves may decide to invest in this fund on behalf of the client, even though he may not have specifically requested it.

But Sprott talks about paper manipulation and its clear to everyone that this is happening. But it almost looks like he's on the other side of the coin now, being associated with a physical price whose divergence with spot is so great, it may appear to some as manipulated.

So... if Sprott's fund ends up trading at Spot + 100%, would this be great?? And if Sprott's fund ends up trading at this level, would you prefer to:

a) Spend $30,000 and then store 1000 oz in your own home safe.
b) Spend $30,000 and have Sprott store 500 oz for you?

Difficult question for some.
 
the last NAV premium over spot record was back in April 2011 just as silver went parabolic and the entire commodity complex experienced theinfamous May 1 takedownwhen it collapsed by $8 dollars in milliseconds on glaringly obvious coordinated intervention. Said otherwise, like back then, so now there is an actual shortage, manifesting itself in the premium. And while last time its was the price plunge which eased supply needs, we are not so sure how one will be able to spin a collapse of the current, far lower paper silver price.
 
Thor122 said:
the last NAV premium over spot record was back in April 2011 just as silver went parabolic and the entire commodity complex experienced theinfamous May 1 takedownwhen it collapsed by $8 dollars in milliseconds on glaringly obvious coordinated intervention. Said otherwise, like back then, so now there is an actual shortage, manifesting itself in the premium. And while last time its was the price plunge which eased supply needs, we are not so sure how one will be able to spin a collapse of the current, far lower paper silver price.
Click to expand...

Always good practice to quote your sources buddy...

http://investmentwatchblog.com/phys...mium-over-spot-in-backwardation/#.Twk1Q3ImSFU
 
Black_Sun said:
a) Spend $30,000 and then store 1000 oz in your own home safe.
b) Spend $30,000 and have Sprott store 500 oz for you?

Difficult question for some.
Click to expand...

Maybe, but think about liquidity and confidence. If i would be the guy with millions to invest in silver i would be tempted with sprott physical.
Sure 30% over spot, but it does exist, and as i've mentioned liquidity, buy and sell while you do know that the stuff is there.
Its still paper, tho backed by real thing, therefore in shtf scenario you actually have some options to play, unlike when going with slv.

30,000$ - small fish.

My simpleton thinking.
 
Aengrod said:
My simpleton thinking.
Click to expand...

Its not totally clear to me either, what is really going on here. One thing that I do know, is that lots of newsletter writers say things about silver and gold that are totally false; eg: (a) 100:1 paper leverage; (b) the Comex going bust. Add to this, a lot of precious metals investors who believe these myths, and hence act on their mistaken beliefs. This should not surprise anyone, after all, a lot of wealthy millionaires are also the same people sucked in by the Nigerian scams.

Bron's Gold Chat blog has some detailed chat about the Sprott fund. I have not managed to fully digest and comprehend everything that has been said, but if you have the inclination for this, then it would be time well spent.
 
It was ironic that Gerald Celente got caught out by the "white shoe boys", the very same guys he has been railing against for years :)

Hear what Gerald has to say about those guys...

[youtube]http://www.youtube.com/watch?v=lUKCdQdxyUQ[/youtube]
 
Black_Sun said:
It was ironic that Gerald Celente got caught out by the "white shoe boys", the very same guys he has been railing against for years :)

Hear what Gerald has to say about those guys...

[youtube]http://www.youtube.com/watch?v=lUKCdQdxyUQ[/youtube]
Click to expand...

Kevin James?
 
Black_Sun said:
It was ironic that Gerald Celente got caught out by the "white shoe boys", the very same guys he has been railing against for years :)

Hear what Gerald has to say about those guys...

[youtube]http://www.youtube.com/watch?v=lUKCdQdxyUQ[/youtube]
Click to expand...

hahaha. This video was fantastic. Had me in stitches. That's Gerald to a T!

HOLLLLLIDAAAAYYY !!!
 
^ Thanks Bron, great link

It seems that Sprott PSLV can
"- The Trust will not insure its assets and there may not be adequate sources of recovery if its silver is lost, damaged, stolen or destroyed

-If there is a loss, damage or destruction of the Trust's physical silver bullion in the custody of the Mint and the Trust does not give timely notice, all claims against the Mint will be deemed waived

-RBC Dexia, the Mint, the Trustee and other service providers engaged by the Trust may not carry adequate insurance to cover claims against them by the Trust.

-In the event the Trust's physical silver bullion is lost, damaged, stolen or destroyed, recovery may be limited to the market value of the silver at the time the loss is discovered

-Under Canadian law, the Trust and unitholders may have limited recourse against the Mint.

-The Trust may terminate and liquidate at a time that is disadvantageous to unitholders

-The Trust may suspend redemptions, which may affect the trading price of the units

-Unitholders will not have the protections associated with ownership of shares in an investment company registered under the Investment Company Act or the protections afforded by the Commodity Exchange Act

-The Manager and its affiliates also manage other funds that invest in physical silver bullion and other assets that may be held by the Trust, and conflicts of interest by the Manager or its affiliates may occur

-The Trust's obligation to reimburse the Trustee, the Manager, the underwriters or certain parties related to them for certain liabilities could adversely affect an investment in the units

-Unitholders may be liable for obligations of the Trust to the extent the Trust's obligations are not satisfied out of the Trust's assets"
Click to expand...
Well, not that much different from SLV then ;)

Well, you dont hold it you dont own it? :)
 
You must log in or register to reply here.
Back
Top