The Doc has discovered that on Wednesday November 16th, Sprott Asset Management filed a prospectus with the SEC detailing intentions to offer an additional $1.5 BILLION UNITS of the PSLV trust.
Notice that the cartel initiated a new massive silver raid THAT VERY EVENING, so far taking silver nearly 15% lower from $35 to near $30! This obviously seems counter-intuitive as a 15% discount on silver means that Sprott will be able to obtain 15% more phyzz with the proceeds of his follow-on.
We believe that the cartel is gambling with this move BIG TIME, and GOING ALL-IN with their play to induce massive panic/fear in the hopes of scaring potential investors away from PSLV/ silver.
As to the potential implications of what a $1.5 billion unit PSLV follow-on would mean to the physical silver market, Sprott's last issue in 2010 was for $580 million, and silver ran from $18 to $49 over the next 6 months while it took Sprott over 2 months reportedly to source all of the silver.
$1.5 billion would be approximately 40-50 million ounces of silver- meaning we are talking an amount of physical silver equal or possibly exceeding the ENTIRE 2011 US MINT SILVER EAGLE PRODUCTION!
Also meaning we are talking an amount of physical silver that is 10-20 million ounces greater than the entire COMEX registered silver inventory!!
Word is that this could be approved in UNDER 2 WEEKS, and that Sprott already has the silver orders in place. As in, SEC approval, BANG! 50 MILLION OUNCE PHYZZ ORDER PLACED.
Perhaps The Morgue really is going home in a body bag....do da, do da.
TORONTO, November 16, 2011 — Sprott Asset Management LP announces that it has filed a preliminary short form base shelf prospectus containing information relating to units of the Trust with securities commissions or similar authorities in all provinces and territories of Canada. Under the shelf prospectus, the Trust may offer from time to time during the 25 month period after a final receipt is received for the prospectus up to US$1.5 billion of units of the Trust.
This notice does not constitute an offer of securities for sale in the United States.
Sprott's prospectus with the SEC can be found here:
34 comments:
That is a big IF
ya know.. you can rationalize an idea in many ways but lately ive been having a hard time not seeing some of these sprott moves as very... well timed events. very interesting to me.
- runlevel
I agree with runlevel... In the last three smashes this year Sprott always has some form of "activity" just before each smash. The first two smashes he sold a lot of his silver literally a day or two before the smash took place. Either he is a genius or he is on the "in." I guess only time will tell whether all these silver guru's are pumper's or if they are legit...
sng8643
THIS IS HUGE NEWS FOR SILVER INVESTORS !
Don't look to much into it. He's going to be buying a huge amount of silver, something I've been hoping for. If that doesn't make you a supporter of sprott I don't know what will. He's got a lot of money and connections, maybe he knew something, I don't think it's a big deal. The bottom line is he's a silver bug with deep pockets and he's putting his money where his mouth is.
T
i Think may be the sprott is front for Morgue accumulating silver phyzz at lower prices from joe
You don't get to the level that Sprott has without being in 'the club.' You really think The Morgue, which is a de facto extension of the US Government, would let this happen unchallenged?? There's something under the surface here most definitely.
Sprott is not in the club, give your head a shake. He stands for almost everything the "club" hates.
For over a decade he has focused on gold, gold equities, resources. Then a year or so after the first big QE, he opens PSLV, buys a crapload of silver on the market just when the silver supply is starting to get really tight, and we all know silver is the long lever on gold.
Plus he is Canadian so it doesn't matter as much if he is connected to the big US money center banks - it is more important for him to have a working relationship with some of the big Canadian banks, such as Scotia, RBC etc.
I don't know why people are trying to read so much into this - Sprott has said he believes this is silver's decade - and he knows we will probably get one more big deflation smash of silver into the low/mid twenties and when more QE is inevitibly unleashed $50 silver will look like a bargain - so do you think he'd rather buy now with the risk that he'll have it but the price might go down to the mid to low twenties - or wait and try to time the market to the ultimate low and face the risk that the bottom might be short lived and he might have to end up paying well over $50?
Give the guy some credit, he's a billionaire in Canada which is about as rare as someone with over $10 billion in the US, and has helped thousands of his loyal investors over the past decade to make multiples more than they would have in any other funds.
Mrgneiss - AMEN! Well said.
I told you. Sprott is 2 days ahead the Morgue. He has an insider. Follow him.
and he knows we will probably get one more big deflation smash of silver into the low/mid twenties
MrgNeiss, I hope that $26 we had was it.
We dun smashed e-nuff!!!!!
Think of it as one more buying opportunity.
I don't like to see silver smashed either, but as long as you don't hold any paper silver, especially with margin, it doesn't matter.
In order for QE2 to happen, there will have to be some serious deflation occurring, IMO. If we get deflation - silver will be taking a hit - but it will only be temporary.
The PTB will stretch this ridiculous cycle out (deflation - more QE - deflation - more QE...) further than most of us can imagine with the hope the economy will come back naturally on it's own - but there are just too many headwinds to overcome, like babyboomer demographics, housing, consumer debt, outsourced jobs.........etc.
This is the news of the month.
Nothing else out there is bigger than this.
I've waited for this for a long time.
-Cleburne61
Sprott is our modern day "Hunt brothers", and the big difference this time is he is doing all physical.
Just a passing thought on this one. Maybe Sprott is doing his part in making sure JP can't cover, by buying up a large chunk of available silver. "Gosh I want to invest in silver now that it's skyrocketing because of the scandal, but who do I invest in? Well there is this Sprott guy who has just as much and more than COMEX should have had..."
It would delight me no end to see a King Stacker take all the chips off the table. He is doing what we have been yelling about for months if not years. He BTFD. If he can take 50 million ounces off the table, the other players will be sent to the rail to borrow a phrase from Texas Hold'em . If Sprott goes all in, he forces anyone with a smaller stack to fold or match his bet. This is Riverboat Gambling at its best.
And Sprott didn't get to his position as a billionaire be being stupid. It wouldn't surprise me if he had his own moles inside JPM and MS, let him know in advance the plans of the cartel. Sprott, The ultimate insider: The ultimate contrarian.
If we are really fortunate in this cycle we will been able to coat tail this silver raider. I doubt if he will be shorting this market since he accumulates the physical side of this metal but he may be able to break the back of the US cartel nonetheless.
This could dovetail into the proposition by Hommel that if 1% of world currency goes to silver and gold the PM supply goes to near zero and the price goes ballistic.
The buy and hold mentality of those aware of the crises coming our way are absorbing a large part of the available above ground metal. Gold purchases are in hundreds and even thousands of tons.
FIAT is being printed at light speed. This debasement of currencies will only rev up in earnest as we try to save the Euro and the US Dollar. This FIAT will slosh around the globe chasing yields, any yields. Certainly some of of it will find a home in PMs. If you reread the optimism of Hommel's post you'll see the potential prices of PM if even a tiny portion of the world currencies settle on silver. I believe that $30 silver will be a faint dream of those who missed the bus and regret their decisions to buy now.
If nothing else, we can support the giant stackers by continue to buy Phyzz ounce by ounce and adding out strength in numbers.
Silver is up nearly $1 this AM
MRGneiss: you should watch out.. most here will start labelling you as a troll buddy! Long time no chat btw... when you coming back to the thread?
Crouching (Ag) Tiger... Sprott waiting for the next raid.
Being well off does not automatically put anyone in the 'club'. Granted, those in the 'club' seem well off because they profit immensely from the fiat money system, but that does not mean one can only become well off that way.
There are people who profit from actual wise investments, because they see something undervalued (or manipulated down), and they invest in places that most others do not even pay attention to, or do not understand. When one understands something, it becomes easy to invest in that something. There are many other people with excellent reputations in the same boat, such as Sinclair, Rogers, Turk, Faber, etc (in no particular order).
With the big ax Sprott is swinging he could derail the next raid entirely, should he choose to do so. 1.5 billion simolians will mop up a lot of their paper. They will have to tone it down a notch or two.
I see there's a two week wait for permission of some sort, so it looks like a Merry Christmas for us.
IN the military you attack an enemy when he's weak or you have the element of surprise. The surprise element is gone. The attack could take place any time now. Giving an enemy time to regroup would be unwise. Attack now while the enemy is weak.
Sprott is King Stacker.
I will follow him into battle anytime.
James B Canada
Keep it simple. There is an audience willing to pay 15-25% premium for the same silver they can buy directly. He sold all his shares in pslv to them & now will attempt to increase the size of his fund (they do charge fees)His investors will loose money on dillution but he will keep them happy by stating that he is buying more silver. He wins no matter what happens to the silver price. Of course he will play it up as much as possible & may contribute to pushing the price up.
Semper Silver. Ooh Rah!
Interesting that he announces this major accumulation right in the heart of the Indian and Chinese purchasing season. Me thinks that there won't be many ounces left come Feburary. This may be where reality strikes the Comex's virtual world.
It's good to see these remarks, so many strong hands. These periodic raids have weeded out the weaklings, the nervous, the get rich quicksters.
Now there is a growing battalion of angry stackers, unshakable. It's giving them a "Nightmare on Wall Street". HA!
Hey ILUVPM's - nice to see you as well buddy!
I don't think I'll be able to wrest the troll title away from the likes of such righteous SLV defenders as Brain O'Fagagain and Skid (mark) dynamite.
You know I'm a believer of way higher silver in the long term, but we need more QE first and that ain't gonna happen until we get more severe deflation - which you know what that will do to PM's - but it will only be a short term phenomenon.
As usual..you guys have it all wrong. Fucking idiots among us. 1) Silver Doctors acquired public information...which required no effort 2) This doesn't mean 1.5B of silver ordering to back the trust. He could order 1 ounce tomorrow and wait 10 years if he wishes.
But if Sprott doesn't use his $1.5 billion he won't get new clients and thereby generate new fees. His clients expect results and Sprott expects fee income.
He doesn't have 1.5 Billion you idiots. What is wrong with you people? Is it the whole southern belt that can't read or just this hick blog. It's the ability to raise and issue the shares NOT 1.5 billion dollars he just found.
Crusso33,
That is what I got from this filing as well. Not that there would be an immediate purchase of 50 million ounces of silver on the open market. He is just allowing the expansion of the share offerings to another $1.5 billion. He still needs to HAVE the increased demand for the shares and that may or may not come.
This one really confused me until I actual read the prospectus. Sometimes these guys can get a little overzealous. LOL
yo, us jigs up in dat brookyln crew still be rockin dat platty shine...aint touchin no hoe ass silver dawwgs nothin less than 5gs worth of dat fiat drapin round dis cats neck.
check yo stack before y'all wreck dat stack yo.
jiggaboo jones
Can someone elucidate for me the meaning of the timing of this Sprott announcement coming right on the heels of the vast increase of registered silver? Or am I the only one who thinks they're maybe related?
You need to understand what Shelf purchase is first before commenting on this news. It is not that he will buy right out $1.5B of silver
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