Seeking Alpha

The Sprott Physical Silver Trust (PSLV) falls 2.6% premarket after announcing yet another...

The Sprott Physical Silver Trust (PSLV) falls 2.6% premarket after announcing yet another secondary offering. If there is a shortage of silver, asks Kid Dynamite, why didn't the price of the metal tick up on the announcement a big player is about to buy several hundred million dollars worth?
Comments (23)
  • So who ever said the silver market was simply supply and demand. Heard of JP Morgan?
    9 Nov 2012, 08:34 AM Reply Like
  • Is he buying physical? Or paper?
    9 Nov 2012, 08:39 AM Reply Like
  • If he is buying paper I have lost all sense of humanity.
    9 Nov 2012, 08:46 AM Reply Like
  • He buys physical....lol.....he is the biggest spokesperson for the real metal vs the ETF´s fake paper...plus its in Canada...I think that might be helpful in the future...plus these offerings and the immediate drop in price is usually a good time to buy...
    9 Nov 2012, 08:49 AM Reply Like
  • wouldn't the price drop if more silver is added to the mix but more shares are not offered?
    9 Nov 2012, 09:12 AM Reply Like
  • Herbert moolman has some real interesting
    Analysis. He targeted silver $150 by early 2014
    Predicting we are now in the early stages of another
    Parabolic move higher.

     

    Of course thats if Jamie Dimon lets it get there !!!
    That's what keeps me awake at night.
    9 Nov 2012, 09:20 AM Reply Like
  • SLV and GLD are really sucker plays for investors since they take money that would otherwise likely positively affect the price of the metals,but instead go to these paper trades. You are unwittingly participating in the same type of gold lending activiities that the banksters use to manipulate these markets. Anyone who thinks the CFTC is not similarly manipulated by the banksters needs to back off the hopium hookah. What is to say when the merde hits the fan that paper pushers like slv and gld dont get found out for not having anywhere near the bullion to be solvent, and screw you just like MF Global did. PHYS and PSLV would seem to be a better alternative for 401 Ks and purportedly have gold and silver for every share , but nothing beats having real money in your hands.
    9 Nov 2012, 09:31 AM Reply Like
  • He always buys physical. I dont know how he navigates this and if silver is as tight as silver bugs claim it will get harder and harder to do this as time goes by.
    9 Nov 2012, 09:47 AM Reply Like
  • The last time Mr Sprott bought a large quantity of silver it took a few days for the price to reach $40. an oz. Mr Dimon at JP Morgan Chase is in EFT paper sales being the largest EFT sales bank. With a few key strokes it can look like anything he wants on the computer. What it does not reflect is the cost of the mining process as well as the quantity of metal yet mined plus the availability of the ore.
    9 Nov 2012, 10:25 AM Reply Like
  • For my two cents, quoting myself in a comment quite a while ago, I said, [and stand by it] that I have tracked the price of SLV and SIVR since the price of silver was at the top. Daily I check it, and for my money, regardless of whether prices go up or down it is okay for now. Notice I said, "FOR NOW". I fully believe, that is the *hit hits the fan, we will get a bad notice that they don't have the silver, SO, again, buy it NOW if you don't have silver, and if things get out of hand, sell your shares early, and put it in Silver American Eagles, or Canadian Maple leafs.

     

    If that isn't clear let me know, or re-read it.

     

    Capt. Brian
    The Lost Navigator
    9 Nov 2012, 10:55 AM Reply Like
  • I looked at his post and all I could think of ROB SILVER TO PAY PAULSON, I don't know why, sorry. Kidding aside, who or what determined that silver is in shoart supply?
    9 Nov 2012, 11:22 AM Reply Like
  • If you buy USA dimes -prie 1964- everyone accepts the authinisty, no drilling a bar.
    And they could buy a loaf of bread in 1950 and they can today
    A silver dollar is too large. Today $40.
    9 Nov 2012, 05:42 PM Reply Like
  • What is curious about the timing of this offering is that Sprott has decided to increase the holdings of silver when the stock was only trading at a reasonably small premium to the spot price. Most other times he has waited for a much higher premium. He must have buyers lined up who are anxious to get in at these silver prices...

     

    http://bit.ly/VOuhkZ
    9 Nov 2012, 08:18 PM Reply Like
  • Hmmm...
    Curious why no one has mentioned that if one year ago you had bought shares in SLV and the same number of shares in PSLV; you would have 10% more money in your SLV account. I guess that paying 10% of your total investment over the last year is a small price to pay for the 'security' of knowing that your silver is safe and that you are somehow leading the charge in putting a stick up the collective asses of the global silver manipulators. I guess I'm just not cultured enough as I would prefer to have the 10%.

     

    Just in case you doubt, see the following link.
    http://yhoo.it/TzToUc;range=1y;compare=slv;...
    9 Nov 2012, 09:45 PM Reply Like
  • Yes SLV and GLD are day trading stocks....you say you are up 10%....in paper..but remember its only paper..
    10 Nov 2012, 08:41 AM Reply Like
  • Characterizing a one-year timeline as 'day trading' makes about as much sense as pretending that there is a difference between PSLV and SLV in terms of physical ownership.

     

    (I am bullish in the PMs and especially silver and both own ASEs and 'day-trade' as you say with fiat currency.)

     

    It's just that the PSLV crowd is starting to sound a little cult like in their in their unsupported belief that PSLV offers some advantage.
    I know that you are going to flame me but after you get your venom out try to answer this basic question.

     

    "If the price of open market silver has gone up over the last year but the price of PSLV has not kept pace, just where does the difference go?"

     

    An excellent analysis of the difference between PSLV and SLV & other ETF can be found here: http://bit.ly/PPcJT8
    I'll wait patiently for a factual discussion on any real differences.
    12 Nov 2012, 08:39 AM Reply Like
  • One more time if it's not in your hand you don't own it. For those of you who are still skeptic see how many silver mines are in operation and the cost it takes to produce one ounce. This includes fuel machinery workers same as any other mining business. Fact is the ore supply is short. It is ore of lower quantity and lower quality as compared back in the day of the Nevada mines. There was a time you could buy a Morgan proof coin for $4 90% silver 10% copper. Try and do that now. Or try and buy the .999% Standing eagle coin. for a similar price.
    11 Nov 2012, 10:25 AM Reply Like
  • Does anyone have an answer or theory on what happened Friday? The unit price of PSLV stayed level yet the price of silver shot up.
    11 Nov 2012, 06:38 PM Reply Like
  • Total confusion.
    11 Nov 2012, 07:36 PM Reply Like
  • I still don't understand what happened Friday.Will PSLV continue to trade tomorrow?
    11 Nov 2012, 06:42 PM Reply Like
  • This is in response to the request to tell something about myself. We've been married 35 years. I am an engineer. But most relevant to this forum, I once had access to the WSJ on microfiche starting the year it first published in 1898. I scanned everyday to the forward time looking for a method that would work. I proved that it is possible to make millions using the time honored phrase, “Cut your losses, let your profits run and time your moves.” I did it four times over the course of one semester starting with $10,000. It took 3 to 5 years using stocks and 2 to 3 years using commodities to amass a fortune. Of course, that was paper trades but until now, I have not had the funds to put this into practice until the present time. I welcome any questions fellow members may have. I believe we can make this machine work.
    12 Nov 2012, 09:03 AM Reply Like
  • Oooohhhh sounds like a deal! Where can I send you my money?
    12 Nov 2012, 09:40 AM Reply Like
  • Don’t get me wrong, I’m not purporting to start a mutual fund; rather I would greatly enjoy solicitations to my response for a particular trade beforehand.

     

    I emailed the fund contact and this is the response I got:

     

    http://bit.ly/SHLrLB
    12 Nov 2012, 01:59 PM Reply Like
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