Sprott shelf filing for PSLV to buy more silver

[PMBug]

...
Most people here know what Eric Sprott did to the silver market 14 months ago. It was moping along at 18, and from deep left field he did the Sprott Physical Silver Fund (580 million most of which he bought himself) and blew the Silver price to 50 in 5 months, almost taking JP Morgan to Chapter 11 in the process . They have been trying to raid it down ever since, including today, given that they were probably titularly bankrupted by the move.
...
It took 3 months for Comex to deliver that much physical, many bars POSTDATED the issue, some still warm from the refinery, meaning, in short , there is no size physical silver ANYWHERE and it certainly hasnt improved a year later. In effect Sprott did a perfectly aboveboard Hunt brothers corner on these Comex thieves, and hoist them on their own petard, talk about clever. ...

IMHO, one incontrovertible fact thus holds, there is no material size Physical Silver anywhere, Comex, LBMA, pick it, so silver is wildly vulnerable to a second similar sized issue. We would see 50 far in the rear view mirror. The JP Morgan raids, the coordinated margin call raises, the Sunday night massacres , all these are testimony to this fact. Silver is in substantial shortage and preposterously mispriced as JPM desperately tries to wriggle out from under their nightmare short position.

Ok fine, got it vamoose, we know all this. So then why doesnt that moron Sprott just do another 500 million and blow the shorts away once and for all, and have Blylthe turning tricks in the Bronx?

Well the short answer is he COULDN"T he had a 365 day waiting period, Obligatory , which ended two weeks ago. Please consider that the 580 million PSLV Issue tripled the silver price, 18 to 50, so....rinse and repeat, do we go to 100 if he does another? For starters yes.

The Toronto Globe and Mail announced this morning that Sprott has just filed a shelf offering for , brace yourselves, a billion five, followup, Physical Silver, same as PSLV so here we go. ...

http://www.tfmetalsreport.com/commen...#comment-90085

Sprott filing:
http://www.sec.gov/Archives/edgar/da...243774_6-k.htm

This could get interesting.

[PMBug]

Interesting bit of speculation here following up on the comment above and the Canadian Mint Gold trust story:

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What we have here is a match race, Secretariat vs. War Admiral, one or the other of these guys is going to do a Physical Silver issue very very soon and blow the Silver market apart again, , and the last such issue tripled the Silver price. its possible this Silver air raid stems from Eric filing that shelf Prospectus and i am told by informed people, it could be approved in two weeks. And importantly , once approved , he can move overnight, just bang, no road shows, no dog and pony shows giving JPM a few weeks to work with. NOPe, and critically, if he has the orders , its BANG , and Ciao manhattan for JP Morgan/ I am cheering for Eric, for many reasons, but one is the electrifying effect such an issue would have on the Silver price. Oerhaps this explains the current counterintuitive takedown.

Thats about enough from you Vamoose, watch on Tuesday to see the size of the Royal Canadian Mint Issue, if its 500 then they have street cred and the SILVER is coming in 30 days. People, this is a bit wild you know. If you held SLV god knows where in the HSBC vaults somewhere (you don't, its papar) and you could switch to a triple AAA Credit at half the carrying costs and many times the redemption convenience, well, connect the dots.

http://www.tfmetalsreport.com/commen...#comment-90104

[swissaustrian]

This is great news. Sprott will gladly take the low prices.
I don´t like what he did in late April and mid September this year though. He did interviews saying he sold some PSLV to buy mining shares when in fact he knew somehow (why???) that the big downturns for silver were right arround the corner. This perfect "timing" is a bit suspicious...

[PMBug]

$1.5B is roughly 46 to 47 million ounces of silver. How in the world is Sprott going to obtain that much physical silver in this market? The COMEX has less than 33 million ounces (supposedly). Will he raid the SLV vaults?

[swissaustrian]

$1.5B is roughly 46 to 47 million ounces of silver. How in the world is Sprott going to obtain that much physical silver in this market? The COMEX has less than 33 million ounces (supposedly). Will he raid the SLV vaults?

He´ll probably get some out of Europe and Asia aswell.
Supply of 1000 oz bars over here in Switzerland isn´t a big issue so far.
But, I agree: This is going to be funny.

[3L3V3N]

He´ll probably get some out of Europe and Asia aswell.
Supply of 1000 oz bars over here in Switzerland isn´t a big issue so far.
But, I agree: This is going to be funny.

Yeah try getting a few thousand bars and let me know if there is a supply issue or not...

[dereksatkinson]

ok.. this is a huge story. Why isn't zerohedge talking about it?

[PMBug]

Maybe they haven't heard about it yet. Sprott didn't publish a press release on it and it's flown somewhat under the radar at the moment.

I expect that it will be posted there soon though.

[dereksatkinson]

Maybe they haven't heard about it yet. Sprott didn't publish a press release on it and it's flown somewhat under the radar at the moment.

I expect that it will be posted there soon though.

Any word on how long it will take for Sprott to enter the market? I'm assuming he's going to have to put at least 1/3 of that amount into the market by year end which would put a huge bid under silver.

[PMBug]

From what I've read (and not verified so FWIW), the shelf filing has to be approved. That could take up to 2 weeks from the filing date, so another week or so to go. I don't know if there is a timetable for the purchases once the filing is approved.

Based upon what he did last time with PSLV, I'd expect his purchases to phase in over a period of a 4-6 months.

[dereksatkinson]

Based upon what he did last time with PSLV, I'd expect his purchases to phase in over a period of a 4-6 months.

4-6 month is reasonable but December is the big delivery month. They are going to have to buy balls this next month if they want to get 1.5 billion on by middle of next year.

[KMS]

Bullish.

[Steven Douglas]

Wow, tripling down - an actual run on physical silver, and in broad daylight. Totally expected, but I was hoping for selfish reasons that it wouldn't happen for another year, and not at this magnitude. Oh well, strap in tight - here we go, as we find out if JPM et al have any more tricks left up their sleeve. If they do, it will be the last ace they play.

[Island_Dweller]

Follow up article:

http://profitimes.com/free-articles/...ilver-bullion/

From the article:

Yet, only two Web sites mention the breaking news, The Globe and Mail and bullion market reporter Harvey Organ, HarveyOrgan.blogspot.com. Don’t expect Eric Sprott to herald the milestone purchase; he’s trying to avoid investors front running the purchase.

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Looks to me like they missed a website! Way to go PMBUG!

[swissaustrian]

Not to crash the party, BUT the prospectus says he MAY issue the shares. Not he Will.. Also up to 1.5 B. It could be less.

Sprott Physical Silver Trust (the “Trust”) may offer from time to time, during the 25 month period that this short form base
shelf prospectus (including any amendments hereto) (the “prospectus”) remains effective, up to U.S.$1,500,000,000 of
transferable, redeemable trust units (the “trust units”)

[PMBug]

If it's approved, it's pretty much guaranteed that he will issue shares and start buying as much silver as is economically feasible (not all at once though). IIRC, it's the same wording as the original PSLV prospectus.

[3L3V3N]

I wonder what he is going to call it... PSLV 2?

[PMBug]

Sprott confirms:

...
When asked to clarify what is happening with his company’s silver vehicle PSLV, Sprott replied, “Well, because we had to wait one year as a public company to file a new registration statement, we did that at our one year anniversary.

“That gives us the right because it’s now called a ‘continuous filing,‘ it gives us the right on an overnight basis to raise money for the silver fund, which would be used to buy physical silver.

I’ve always stated that I’m not going to do anything that would negatively affect the premium of that fund. In my ideal, we get a couple of institutions come in here and say, ‘Hey we’d like to take down a couple of hundred million bucks worth of silver, we love your vehicle.’ And then we might go and say, ‘Okay, I think it’s time to go out there and go raise some money to buy silver.’

So we’ll just have to wait for the right time and who knows when it happens? Maybe we have to imagine that the silver price is moving up, which we haven’t been in that environment recently, but the interest can come back very quickly.”

More and link to audio interview: http://kingworldnews.com/kingworldne...in_Silver.html

[dali lambone]

Anyone think this is the trough that Sprott is waiting on to make the big buy?

[ancona]

It could very well be. I want to see what happens in Asia tonight, and in Europe before the bell tomorrow.