Sprott Confirms He Sold PSLV in May to Capitalize on 20% Fund Premium to Silver

When word spread in early May that Eric Sprott of Sprott Asset Management had sold a large portion of personal holdings in PSLV, rumors spread like wildfire throughout the silver community that Sprott was getting out of silver.
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:

Comments

  1. Anonymous says:

    i dont know why anyone who held PSLV when the premium was up around 23% didnt sell it for physical

  2. Anonymous says:

    how much silver does Sprott own? anybody know?

  3. As a fully paid-up member of the "always end up holding the shitty stick" club and a founder member of the "egg on face brigade" I have a built-in distrust of people (especially billionaires) who are paraded before me as "really good guys" and who are really looking after my interests.
    After many many years I can tell you that the only person looking after your welfare is you……. you alone…… got it!
    Never, ever be taken in by heroes. Try to do your best and think about what you are doing. Don't be led. Buy Gold and Silver if you think it's a store of wealth but don't listen to all the clap-trap and snake-oil salesmen that surround it. Just buy it. Hold on to it and forget it. You'll soon know if you've made the right decision. The only thing you will get following the "pundits" and "experts" is ulcers.

  4. Anonymous says:

    Well, Eric is a smart guy, he made the right decision by doing arbitraging on the spread.

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