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http://www.newswire.ca/en/releases/a.../10/c9211.html (via jesse) Shows disconnect between physical and paper silver. TORONTO, Jan. 10 /CNW/ - Sprott Asset Management LP is pleased to provide investors with an update on the delivery status of silver bullion purchased by the Sprott Physical Silver Trust (NYSE ARCA: PSLV, TSX: PHS.U) ("Trust"). As of November 10, 2010, the Trust had contracted to purchase a total of 22,298,525 ounces of silver bullion. As of December 31, 2010 a total of 20,919,022 ounces of silver bullion had been delivered to the Trust. The Trust expects to take delivery of the final 1,379,503 ounces of silver bullion by January 12, 2011 and will subsequently publish the serial numbers of all bars held by the Trust on its website: www.sprottphysicalsilver.com. "Frankly, we are concerned about the illiquidity in the physical silver market," said Eric Sprott, Chief Investment Officer of Sprott Asset Management. "We believe the delays involved in the delivery of physical silver to the Trust highlight the disconnect that exists between the paper and physical markets for silver." |
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Re: Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases
I don't believe Sprott. I tried dealing with them and no one ever picks up their phones. More importantly, I ended up buying a very large amount of silver from someone else, had it delivered to Canada and tried to sell it. This is all institutional size business and no Canadian broker was willing to take it from me unless I agreed to a 50 cent discount to spot. There is no shortage of physical. I can buy even now a decent amount with no delivery problems.
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Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases
http://www.newswire.ca/en/releases/a.../10/c9211.html (via jesse)
Shows disconnect between physical and paper silver.
TORONTO, Jan. 10 /CNW/ - Sprott Asset Management LP is pleased to provide investors with an update on the delivery status of silver bullion purchased by the Sprott Physical Silver Trust (NYSE ARCA: PSLV, TSX: PHS.U) ("Trust").As of November 10, 2010, the Trust had contracted to purchase a total of 22,298,525 ounces of silver bullion. As of December 31, 2010 a total of 20,919,022 ounces of silver bullion had been delivered to the Trust. The Trust expects to take delivery of the final 1,379,503 ounces of silver bullion by January 12, 2011 and will subsequently publish the serial numbers of all bars held by the Trust on its website: www.sprottphysicalsilver.com.
"Frankly, we are concerned about the illiquidity in the physical silver market," said Eric Sprott, Chief Investment Officer of Sprott Asset Management. "We believe the delays involved in the delivery of physical silver to the Trust highlight the disconnect that exists between the paper and physical markets for silver."
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Re: Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases
So, what is the "decent amount" you can afford?
1 million ounce or 5 million ounce?Comment
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Re: Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases
I think silver supply depends a lot on where you are in the country. Apmex seems to have plenty still. In Ohio, you can get coins at some auctions below spot price or at least you were able to at the beginning of December. It's been a month since I've been to one so I don't know if they've picked up in popularity or not. Went to a coin shop in Alabama, before Christmas, and they were pretty much out of silver. The owner said he sold most his stock when silver hit $25. He sells silver as soon as it comes through the door and he would buy more if silver went up a lot in price. I tried not to think too much about his logic.Comment
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Re: Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases
A little perspective might help here. The Sprott Physical Silver Trust more than likely wants LBMA good delivery bars, which for silver is between 750 and 1,100 troy ounces. (1,000 troy ounces is about 68.5 lbs.) In total Sprott needs around 22,000 LBMA bars of silver. Doubt Apmex would touch that!
My biggest concern about the Sprott Physical Trusts is that the bullion is stored by the Royal Canadian Mint, a government corporation.Comment
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Re: Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases
Someone brought up the point that perhaps canada will have an "emergency" and confiscate gold.
Is there another trust structure similar to GTU, CEF, PHYS, SLV that is available to U.S. citizens through
a brokerage account, but domiciled in another country besides canada?Comment
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Re: Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases
SGOL holds its gold in SwitzerlandOriginally posted by charliebrown View PostComment
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Re: Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases
From the perspectus:
Gold held in Zurich, Switzerland- The Shares represent
beneficial interest in the Trust, which in turn holds allocated
physical gold bullion bars stored in secure vaults in Zurich
Switzerland on behalf of the Custodian, JPMorgan Chase Bank,
N.A.,. Each physical bar is properly segregated, individually
identified and allocated towards the property of the Trust. All
physical gold conforms to the London Bullion Market Association’s
(LBMA) rules for Good Delivery.
The bold text doesn't give you a warm fuzzy does it?
Although the change of jurisdiction might be considered a diversifier.
Comment
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Re: Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases
No idea. Googling around, much to my amazement Wikipedia has a page on such products: http://en.wikipedia.org/wiki/Gold_ex...traded_productOriginally posted by charliebrown View Post
I'd be more concerned about the vault owner than its location. (I'm skeptical about another gold confiscation in the United States because I'm guessing that enough influential people now own gold.) I wouldn't touch anything with a bank owned vault.Comment
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Re: Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases
awesome, thanks much. It seems almost all the funds have bank owned vaults. Maybe I should diversify on
bank vault ownership.Comment
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Re: Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases
If Sprott's physical silver trust performs as well as his physical gold trust then you'd be better stuffing the cash under the matress.Comment
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Re: Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases
well not exactly true. The problem with the Sprott Funds are the super high premiums. I think early last year Sprott gold fund
had a premium of 20%, now the premium is around 2%. So most of gold's gains has been wiped out by premium compression. I did not buy it then. You could have bought GTU for something like 7% at the same time period.
I started buying PHYS when the premium was down to around 6%. Now it is 2%.
Now the silver trust PSLV has a premium of 15%. I wouldn't buy this one either at this price. Wait for the premium to get to
something normal around 6 - 7%.
I am still puzzled why GTU, and PHYS now have sub 2% premiums when last year they were 8, 9 ... 20%. Has everyone
deemed GLD safe? Are the big boys going physical?Comment
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Re: Sprott Physical Silver Trust Updates Investors on the Delivery Status of its Silver Bullion Purchases
Not exactly the same thing, but have you considered http://goldmoney.com/ ?Originally posted by charliebrown View PostComment
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