Friday, January 20, 2012

Is Sprott Making a Dent into Silver Prices?

UBS analyst Edel Tully, finally caught wind yesterday that Sprott was making a huge purchase which "may" have an impact on silver prices.  Tully noted in a letter sent to his clients that the run up in silver prices could be tied to buying of physical metal by the Sprott Fund.  Silver finished the week up 7.9% and up 14.7% month to date.  Someone let Edel in on a little secret called  Heck yes it's making a dent into silver prices!  The only thing different from what was reported by the Doc on November 22nd and today is that it was a lot harder for Sprott to lock up physical silver! 

From:   Tuesday, November 22, 2011

Sprott Asset Management Files Prospectus With SEC for $1.5 BILLION PSLV Follow-On

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

Perhaps The Morgue really is going home in a body 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:

You may also want to let him on the follow-on offering to PSLV.