ATAC Week In Review - May 19, 2013: Dollar Dilemma And Anomalies [View article]
Michael
Thanks for another valuable article. Of late I am trimming longs and deploying capital into other investments. What's your take on silver? I started buying a while back and look to add more at lower levels.
Silver Mine Production Surges, Boosted By 17% Increase In U.S. Output [View article]
This chart says it all. People who cry manipulation miss this one critical component, if the world is well supplied in silver they can sell short all they want. And, given certain limitations there is nothing wrong with that. In fact it lets people like us buy cheap.
The miners must be happy with the market or supply would not be at such lofty levels. If the miners are willing to sell cheap so be it. It lets people like us buy cheap.
That said, the chart looks to be parabolic while the price has continued to drop. If ever there looked to be a reversal on the horizon that chart would be a strong candidate.
My thought is to dollar cost in until this inevitable reversal takes hold. It's coming.....
It's Still Fool's Gold For A While Yet [View article]
Interesting Times
I agree with your comment. Silver feels like the better buy right now but gold is getting quite interesting. Physical will overwhelm paper at some point and the real market price will be settled, either higher or lower but based on actual physical deliveries.
People say the markets are always right. I disagree. EPD on March 9 2009 was priced at $16 a unit even though they were increasing their distribution again! Currently I believe PSLV is mispriced. Physical silver selling at paper prices.
It's Still Fool's Gold For A While Yet [View article]
Lets hope you are right! I am slowing taking profits on my MLP units and waiting to deploy into gold. I have already started buy silver via PSLV at prices well below its IPO.
Silver: Lower Levels Still Ahead Despite High Premiums [View article]
Looking at PSLV and its recent discount to NAV tells you all you need to know about the silver market. For now, there is ample silver in the marketplace in bullion form. True, ASE's and other silver products may be in short supply, but that should be temporary.
If this were not the case, people would take delivery from PSLV ans sell into the physical market. The threshold for redemption of PSLV units is quite low on a macro level (about 10,000 ounces) so this could be arranged by many market participants. The fact that they have not undertaken this path tells you all you need to know about the physical silver market. For now, there is plenty of physical in the market.
That said, buying PSLV at this price point and this discount to NAV is an exceptional opportunity to buy into the silver market. I have been aggressively accumulating units recently as I view PSLV as the cheapest place to buy physical silver anywhere on earth.
Silver: Do Not Be Fooled - Lower Prices Ahead [View article]
Noc:
Absolutely right. I may never take delivery, but if the premiums do blow out someday other investors WILL take delivery and cash in on the gains available in the physical market. Realistically that won't happen, as the premium of PSLV would certainly rise to eliminate the spread. Free money doesn't exist.
As for my frequent posts of late, I'm truly just letting people know that real silver is being sold, in size, at near spot price. I am also letting people know that I am buying so I am certainly biased. I still have another 1500 units I want to buy at this price so don't rush into the market just yet! lol
Silver: Do Not Be Fooled - Lower Prices Ahead [View article]
No need to believe me. Do your own research and follow your own conclusions. I know Mr. Sprott and have talked to Investor Relations regarding withdrawl. I've made my decision to buy PSLV at current low spot prices and just wanted to make the owners of SLV aware that a better vehicle is available. I also own a lot of ASE's so I'm ready for anything.
Silver: Do Not Be Fooled - Lower Prices Ahead [View article]
Based solely on my own research, but I believe that PSLV offers the cheapest physical silver prices in the world. I've been buying units capable of converting to physical silver bars at near spot prices. And I've been buying in size of late.
PSLV offers real physical ownership, better tax treatment and is selling at spot. SLV perhaps has better liquidity which is certainly important, but with premiums in the local coin stars running 20-40% I'll take less liquidity and buy more ounces at spot.
Silver: A Supply And Demand Tightrope Act [View article]
A quick note about PSLV (I am long):
In a previous life (some 10 years ago) I ran a small public company on the TSXV. Eric Sprott was a large investor in my company at the time. I recall today the name of the Analyst he had working my account, Nathan XXXX. The reason I recall his name, and no others, is that Nathan would call me weekly and discuss every aspect of the company. What customers I was working with, who was in the pipeline, what's the next product we are taking to market, etc. Bottom line, these guys are damn thorough and that's what makes Eric Sprott a brilliant investor.
I had several meetings with Eric at his office in Toronto and found him to be a wonderful man. Always respectful to me, always interested in my company (even though I was small potatoes) and just the nicest person your could hope to hang out with.
I continue to buy PSLV for all its rational reasons, and because the head guy, Eric Sprott is the kind of guy I want watching my money.
Silver: A Supply And Demand Tightrope Act [View article]
This is one of the problems with SLV. When they settle at cash they are buying you out at spot without the premium being paid in the physical market. This is a big deal now, but could become a HUGE deal in the long term.
Example: Supply suffers some kind of crunch driving premiums temporarily through the roof. Demand for physical silver explodes and everyone wants it now. The Comex, instead of delivering real silver elects to settle in cash. They pay you spot when your real physical silver would be worth substantially more.
My advice, ANY investment that offers a cash settlement instead of the real deal is a terrible investment. That fact alone should carry considerable weight with investors.
I am long PSLV and they do have the real thing and I can order delivery if and when I decide. There will be NO cash settlement on my investment.
Gold And Silver Speculator Long Positions Wiped Out [View article]
What you are seeing now is the real danger of the COMEX or SLV or GLD not holding the physical to settle all potential redemptions. many write "the will settle out in cash" and the markets are clearing showing you the problem with that logic. The paper price for silver is anywhere from 10-20% less than the physical price. Just imagine if this spread rises to 40-50%. Instead of being able to take delivery and sell into a real market and lock in gains, you will be cashed out at the paper price.
I am long PSLV. I want the premium. I want the tax advantages. At some point I might want the physical. PSLV is the best deal around right now and I am adding more on dips.
Worldwide Silver Shortage As Premiums On Silver Eagles Reach 40% [View article]
PSLV is a great choice for investors looking to own physical silver. The author makes a good point regarding the spread between spot and physical silver pricing and PSLV may indeed be the vehicle used to take advantage. PSLV has delivery options available to anyone owning 10,000 ounces. Very soon someone will take delivery from PSLV which is selling at spot prices and sell into the market at premium. If I could do it I would.
ATAC Week In Review - May 19, 2013: Dollar Dilemma And Anomalies [View article]
Thanks for another valuable article. Of late I am trimming longs and deploying capital into other investments. What's your take on silver? I started buying a while back and look to add more at lower levels.
I am long PSLV.
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Silver Mine Production Surges, Boosted By 17% Increase In U.S. Output [View article]
The miners must be happy with the market or supply would not be at such lofty levels. If the miners are willing to sell cheap so be it. It lets people like us buy cheap.
That said, the chart looks to be parabolic while the price has continued to drop. If ever there looked to be a reversal on the horizon that chart would be a strong candidate.
My thought is to dollar cost in until this inevitable reversal takes hold. It's coming.....
It's Still Fool's Gold For A While Yet [View article]
I agree with your comment. Silver feels like the better buy right now but gold is getting quite interesting. Physical will overwhelm paper at some point and the real market price will be settled, either higher or lower but based on actual physical deliveries.
People say the markets are always right. I disagree. EPD on March 9 2009 was priced at $16 a unit even though they were increasing their distribution again! Currently I believe PSLV is mispriced. Physical silver selling at paper prices.
I am long PSLV.
It's Still Fool's Gold For A While Yet [View article]
Thanks for your article. Very informative.
Silver: Lower Levels Still Ahead Despite High Premiums [View article]
If this were not the case, people would take delivery from PSLV ans sell into the physical market. The threshold for redemption of PSLV units is quite low on a macro level (about 10,000 ounces) so this could be arranged by many market participants. The fact that they have not undertaken this path tells you all you need to know about the physical silver market. For now, there is plenty of physical in the market.
That said, buying PSLV at this price point and this discount to NAV is an exceptional opportunity to buy into the silver market. I have been aggressively accumulating units recently as I view PSLV as the cheapest place to buy physical silver anywhere on earth.
If the price drops more, I will buy more.
Silver: Do Not Be Fooled - Lower Prices Ahead [View article]
Absolutely right. I may never take delivery, but if the premiums do blow out someday other investors WILL take delivery and cash in on the gains available in the physical market. Realistically that won't happen, as the premium of PSLV would certainly rise to eliminate the spread. Free money doesn't exist.
As for my frequent posts of late, I'm truly just letting people know that real silver is being sold, in size, at near spot price. I am also letting people know that I am buying so I am certainly biased. I still have another 1500 units I want to buy at this price so don't rush into the market just yet! lol
Gold And Silver Speculator Long Positions Wiped Out [View article]
http://bit.ly/Y6ENUY
SLV quote:
http://yhoo.it/13E9X6K
34.6% premium (and no I am not buying ASE's at this price. I am buying PSLV ounces at a fraction of a percent over spot).
Call me crazy! lol
Silver: Do Not Be Fooled - Lower Prices Ahead [View article]
Have a great day and thank you for your comment.
Silver: Do Not Be Fooled - Lower Prices Ahead [View article]
PSLV offers real physical ownership, better tax treatment and is selling at spot. SLV perhaps has better liquidity which is certainly important, but with premiums in the local coin stars running 20-40% I'll take less liquidity and buy more ounces at spot.
Silver: A Supply And Demand Tightrope Act [View article]
In a previous life (some 10 years ago) I ran a small public company on the TSXV. Eric Sprott was a large investor in my company at the time. I recall today the name of the Analyst he had working my account, Nathan XXXX. The reason I recall his name, and no others, is that Nathan would call me weekly and discuss every aspect of the company. What customers I was working with, who was in the pipeline, what's the next product we are taking to market, etc. Bottom line, these guys are damn thorough and that's what makes Eric Sprott a brilliant investor.
I had several meetings with Eric at his office in Toronto and found him to be a wonderful man. Always respectful to me, always interested in my company (even though I was small potatoes) and just the nicest person your could hope to hang out with.
I continue to buy PSLV for all its rational reasons, and because the head guy, Eric Sprott is the kind of guy I want watching my money.
Silver: A Supply And Demand Tightrope Act [View article]
Example: Supply suffers some kind of crunch driving premiums temporarily through the roof. Demand for physical silver explodes and everyone wants it now. The Comex, instead of delivering real silver elects to settle in cash. They pay you spot when your real physical silver would be worth substantially more.
My advice, ANY investment that offers a cash settlement instead of the real deal is a terrible investment. That fact alone should carry considerable weight with investors.
I am long PSLV and they do have the real thing and I can order delivery if and when I decide. There will be NO cash settlement on my investment.
Gold And Silver Speculator Long Positions Wiped Out [View article]
I am long PSLV. I want the premium. I want the tax advantages. At some point I might want the physical. PSLV is the best deal around right now and I am adding more on dips.
Worldwide Silver Shortage As Premiums On Silver Eagles Reach 40% [View article]
I am long PSLV.