While Sprott quickly denied those rumors, he clarified his reason for dumping PSLV in a recent interview:
Sprott states he sold PSLV to capitalize on its then 20% premium to silver, and turn that premium into more ounces of physical silver.
Sounds like a smart move to us- providing he was able to source delivery of that silver. Assuming he's sourcing said silver from the COMEX, he won't be able to duplicate this trick too many more times before he single-handedly bleeds COMEX registered silver dry.
“If I can buy the silver back at a 20 percent discount from the value, then I can buy back 20 percent more ounces of silver in the physical market. One hundred percent of the proceeds of those transactions went either in the physical silver or into silver equities.”
Click here for entire interview from Silver Investing News:
