Sprott Goes For The Silver Fences

Eric Sprott’s PSLV filed a prospectus, as he is required to do, with the intent of purchasing $1,500,000,000 of physical silver for the PSLV. (Click to download the propectus.)

“Though there are a lot of factors at play, such as a volatile silver price, the recent movement could have something to do with Sprott’s recently filed prospectus for a new offering of up to $1.5-billion of new Physical Silver Trust units. For the longest time Eric Sprott had been holding off on such a filing, telling the Globe in May that “there will not be an offering that negatively impacts the premium on the PSLV.” (Source.)

While this is a very exciting development for physical silver holders, I remain very skeptical about if this will really come to fruition.  I believe  Mr. Sprott is well intentioned and really intends on doing the deed, there is just not enough metal to deliver and I am quite sure heavy pressure will be brought to bear on Mr. Sprott to stop this date with destiny.  The counter party to physical silver is a group of criminal men who trade the paper form of it to control the world’s resources. When you read the true story about the Hunt Brothers, the Federal Reserve, SEC and Treasury had daily briefing on the Hunts and rigged the game to break their backs.  Mr. Sprott has been very wise not to use debt or leverage to make this move, but I know these guys are not going to give up the ship without a dirty fight.

I would like to suggest to Mr. Sprott that he keep hitting singles instead of a huge spectacle buy.  I know, I know, you are all saying he should just go for it.  If you knew the kind of scum he was up against, and you cared about Mr. Sprott, you would encourage that too.  If he goes for the gusto and stands for 50 million ounces when there is on 32 million in the Registered Vaults (if you believe that..) he runs the risk of being branded a “market manipulator” and bring the dog howls of bureaucrats, pundits, and politicians.  If that does not work, I am sure other under handed efforts will be made to stop reality from setting into the world’s markets.

“You cannot solve a problem with the same consciousness that created the problem.”  -Albert Einstein

I hope he does a great majority of his purchases outside of the CRIMEX and go right to the miners and refiners and even overseas.  By Mr. Sprott simply participating in the rigged CRIMEX market, he gives it legitimacy.  It is a crooked casino and should not be played in.  Starve the beast of your time, attention and money.  He would be much more effective and wise to do a majority of the purchases in the free market and deal with the miners themselves.  (Many of which he already has interest in…)

Couple this silver development with the EU debt crisis, the super fail of the Super Congress, MF Global scandal and 2.7 million ounces leaving the Eligible CRIMEX vaults yesterday, does any one still doubt that one day the whole world will change like a thief in the night?

This is also timed with the largest cup and handle bull market chart I have ever seen.  30+ years in the making for silver to finally break $50 an ounce.  We only probably need to break $36 or $40 for the rockets to start roaring again, this time for good.

If you are behind the curve on why you should sell every paper asset you have, right now and buy physical silver, I have create The Ultimate Silver Investor guide with 18 FREE reports. This is for you to have total confidence to take massive action to secure your generational wealth.  (Click here for the reports.)

An example of a Cup and Handle chart

Can you name me any asset that is still 30% below what it was in 1980???

Break that handle and let's get this party started!


26 comments to Sprott Goes For The Silver Fences

  • Chad

    Great Article Chiris. Thanks for your insight! With everythign that is happening it’s only going to get more interesting.

  • Howard

    They can call u names all they want, but if Eric sticks with the physical there screwed and the game will b exposed and then the real fun will start ….

  • Gareth

    I send my ‘prayers’ to Mr Sprott. May the power of the force protect him.

    Looks like the endgame is rapidly approaching. Hope you’re all prepared?


  • mong00se

    Excellent article and I agree 100% with your analysis. Why put himself in such a vulnerable position by forcing their hand? They don’t play by any rules and will do anything and everything to remain in power. This play only makes him a target. I’m sure Mr. Sprott knows many things we don’t but from the outside looking in it appears an impatient move. He’s already got them in a headlock so just keep applying a little more pressure instead it appears he’s going for the knockout punch. Godspeed Mr. Sprott but I believe slow and steady wins this race.

  • biggaloot

    Again, thanks Chris for this insightful report. Eric Sprott is a smart guy and I trust he is taking all factors into consideration.

    Maybe PSLV will be the new price discovery mechanism?

  • When Sprott started PSLV, it looks like he did not get any silver through COMEX. However, it appears that most/all of the silver he obtained was through the bullion banks that supply SLV (the brands PSLV has very closely match the ones added to SLV over the past year or so).

    So I doubt he will go through COMEX except as a last resort — at which point if confronted, he can say that nobody else had the silver, and COMEX claimed to.

  • Bobby

    All hands on deck when Silver hits $24/25 level….

    Technical analysis still reigns supreme….

  • MPB

    Yes, it would appear there is the possibility of a serious development in Silver brewing. I am with Gareth. I too send my prayers to Mr Sprott and may the “force” be with him indeed, he is likely going to need both. Regardless, I will just keep trying to add more physical at these bargain prices for as long as I am able.

  • anonymouse

    Outstanding–Force the failure of the silver derivatives–expose the overselling of the silver bullion banks–do the same for the gold markets–kill the comex, GLD,SLV ,JPM and HSBC –they all deserve to die and the crook executives and owners exposed–They gave us this worldwide mess–take delivery people–and expose the ‘Masters of the Universe’ for the frauds they are–

    And while you are at it–
    realize that there will be no jobs till $$ gets to Mainstreet-
    -The FEDeral Reserve [a Private Corporation-few know this] is Owned by the Big banks US and European. The FED gives Our money to those Banks.
    –No money gets to Main St.–Small Businesses make 70% of jobs–
    –Those small businesses get their capital from pensioners and middle class savers CD’s in local/regional banks and credit unions-
    -Those savings are wiped out by FED zero interest rate policy of Greenspan and Bernanke–
    –Until Interest rates normalize at 4-5% and people can save again–THERE CANNOT BE ANY JOBS INCREASE…SO–
    **Please send this viral–Americans have to know.

  • James Scott

    Consider this;

    It appears like JP Morgan are in the process of tanking if you look at their share price, which is heading southwards fast. Consider that they also have a huge derivatives liability to add to their suicidal short positions, as well as being a huge creditor in MF Global. Sprott’s play could see them tip over the edge.

    Do not be surprised if JP Morgan are being set up to fail on purpose, and Sprott is playing his part with a nudge and a wink. I am sure they have already entered into some pretty creative accounting to offload their losses onto the taxpayer, leaving their compadré Goldman Sachs free to continue their global raping spree alone.

    Taking JP Morgan down, which is the largest bank in the US by assets, would send the whole world’s financial economy into freefall, which is exactly where they want it, so they can provide a solution while the world is on its knees.

    Sprott would not be so stupid to play with his life by making a huge play like this, knowing the consequences of dealing with the criminals that are the financial elite, unless it was with someone’s blessing. He knows many bigger players have paid with their life for less.

    We may be watching the beginning of the endgame. Hhold onto your hats, as if this goes ahead we’re in unchartered territory and it isn’t going to be pretty.

  • Spooner

    Silver Stalwarts (that’s a good word) should never fear to buck up against the Worldly Money Machine Collective [for the good of all people]. We all embody the only restraining force-of-like-kind against their evil, ultimately bent on global enslavement. THREE CHEERS for the hero, Eric Sprott, giving requisite notice to be able to act on his resolve! He’s a smart man who will no doubt proceed prudently, with wise discretion.

  • jerry matt

    I love you Chris and respect all your hard work and efforts, but i’m betting on Eric, his last purchase that took 3 months for delivery,and much was mined after the purchase.COMEX is out, I think he knows it, and he’s going for the throat. if he doesn’t the JIG will be up soon when industry comes to the public looking for product.Rome is burning, market in the tank, and PM’s are down??? what’s wrong with this picture. now you have AGE with margines to dive the price down, but not to save JPMorgans behind, but to load up the trucks tot he back door. GO ERIC GO!!

    • Silver Shield

      @Jerry Matt
      Don’t get me wrong, his move will set off a chain of events that will profit all physical silver holders tremendously.
      On the face of it all he is doing is bringing about the inevitable.
      My only concern is for his personal safety.

      I do not think he is fully aware of what he is up against and I feel he will be taken down hard by those that own this paradigm, if he is not extremely careful.

      It is easy to cheer for Eric as he goes for the touchdown.
      These men that he is playing against own the team, the stadium, the refs, the TV station, the playbook, the rule book, and most of the fans.
      Even if he scores the silver touchdown, it will be ruled as a penalty, he could be banned from the game for life and held as an example of all that is bad in the world.

      My suggestion to him is slow and steady wins the race.
      Your “enemy” is in a no win position.
      By forcing them into a corner, they have no choice but to fight back with all of their might.
      Always leave them an out, even if it means saving face.

      This ultimately about much more than silver it is about human freedom and those that own and control humanity will not give up power easily.
      Running into the cave with swords drawn to slay the beast, is not the best idea.
      The best move is to keep the pressure up wait until the cancer kills the beast and be in position to offer a viable alternative to the failed paradigm.

      I have spent years studying every aspect of this game and I wish I could help from the inner circle as opposed to speculating in the sidelines.

  • Heres the plan an a dam good one. Just run over the crimex. Do this. Get as many huge investor as you can 100 million dollars would do. An start buying silver at your price over the crimex. Say the crimex price is $33.50. You put adds on tv an news paper saying the crimex price is a fraud an not justified. An your offer to buy silver at $35 an ounce. I bet you get local people an silver miners an even gov selling to you. Also i bet the crimex price would follow you up. You have no rules now for anybody telling you what you can do. Margin reqirements only thing stopping you is if you run out of money.

  • laticia

    Thanks for an informative article and perceptive readers’ comments. I don’t believe Sprott has permission to challenge JP. Rather, he is probably fed up with manipulation (and recent heavy losses) and decided to tackle the situation head on. If that’s the case, I hope that: 1. He no longer flies or drives, unguarded. 2. No longer eats in restaurants. 3. Heavily guard all himself and all family members. 4. Buy enough Canadian politicians so that they don’t make his life hell, in some way or another. He is challenging the Mafia, playing with fire, and should only do so if he is fully aware of the grave risks. I’m crossing my fingers that he survives this challenge. My advice: remove himself temporarily to a country where the CIA is not as strong as it is in N. America.

  • lastmanstanding

    Bobby, $24-25 sounds great…if any is available. You, I, we, us had better be buying NOW.

    How many articles, blogs, interviews do you and others need to read/hear… to realize that with what is going to happen, that a few bucks isn’t going to matter…especially if you wait for the perfect scenario.

    These bastards that have perpetrated this bs have been at it for 100+ years…If it gets that low…most-likely it will be by their design.

    Rest assured that THEY will get the lions share of “it” as THEY get the final play in THEIR “fiat” game.

    The thought of THEM getting the best value of “it” with their printed fiat worth NOTHING…Sucks more than death.

    Buy now, have no regrets…to survive later.

  • rangergord

    I am doing far more than wishing him well. I am sending him money. More money… I already invested in PSLV last year and had astounding capital gains. I am staying the course and adding to my position. I have most of my holdings in coins but this is the best way to anchor my registered investment accounts.

  • They always cheat. You know what that means: It is now time for a major distraction which would either grant them more power or topple them from their perch(probably both). Spectacular. It’s gonna get interesting now…

  • Steve G

    Perhaps you all would want to listen to the interview on King World News: http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/11/27_Eric_Sprott.html

  • maryann

    My ONLY problem with Mr. Sprott is that he has sold all his shares held in his privately managed funds before he announced this prospectus.And is now liquidating his share held on behalf of his charitable foundation.

    Food for thought. Even though I have absolute faith that Sprott silver holds every ounce; Mr. Sprott has sold his shares and cashed in the premium (as high as 22%)…in favour of other vehicles for his less public investment funds. Food for thought.

    Disclosure: I hold about 60K in the Sprott fund and probably will sell the shares to cash in the premium and buy CEF instead. the premium is hard to ignore.

  • maryann

    In just about 1 year of owning PSLV I have seen a gain of about 9.44% to date. Now Mr. Sprott began selling his share last spring and kept at it consistently. Now he is liquidating his charitable foundation holdings.

    I think this is a good investment but, I believe that Mr. Sprott sees that there are better silver backed funds that do not experience the volatility of the spot price AS WELL as the premium fluctuations.

    With all due respect to the man. If I had been on the ball I would have sold last spring and rebought when premiums were lowwr (as they are now).

    This fund after it hit the market carries a premoium to spot that is huge. I think that Sprott is fully aware that this is maybe not the best avenue.

  • SilverBull

    I continue to suggest the “they” (JP Morgan and the cartel) is backed by the government. “They” know a rush to silver and gold is the end game for the current banking system. “They” also know an increase in the investment demand will expose the existing shortages. Clearly, this is exactly what Sprott is attempting to do. He also had this to say:


    Every day we see the same phenomena. The price of silver tries to break up and is brought back down. They have had a lot of success in preventing a breakout above $35. This ongoing not for profit selling has to find its origin in very deep pockets. I suggest those are the pockets of the Fed. This repeated pattern has effectively extinguished the physical demand as seen by the US mint data for November. In the short term, we should expect a drop in the price of silver as the credit crisis takes on a life of its own. Maybe not in December; but, after the 1st of the year. Remember, 50% of the total silver available each year and 60% of the silver mined goes to Industry. That is a lot of downward pressure on the price.

  • laticia

    SilverBull, agreed. I would only add that J.P. Morgan + GS + a few other banks = The Fed. In other words, it’s not that JP is backed by the government. Rather, JP et al. ARE the government.

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