This is the 2nd time he has sold at or before the crash. He has obviously inside information, since this type of sale requires months to get authorized. The most interesting part of the document:
Is Sprott a fraud? I am starting to doubt the whole silver story. Why would you say that silver is the investment of this decade and then sell? Not only sell, screw the investors in your trust and not tell them you are selling! And to do it TWICE. Another thing I have a problem with was the whole "buy silver crash JPMorgan" campaign. Max Kaiser also said at $47 silver, JPM goes bust. Obviously that didn't happen, and a big suprise, we NEVER heard that from him again, or the campaign for that matter. (I didn't really believe it anyways) I feel like I am being taken for a fool by these supposed "leaders". It seems like these guys are into some pump and dump silver scam. People say, you buy physical, you havn't lost anything. To them I say bullshit. I, like everyone else works hard for their money. I get excited when I can buy a kilo of silver or a gold buffalo. Its not so exciting that before it even arrives its already $300 cheaper. I honestly don't know what to think and DO want your answers and opinions. I'm not just ranting, I do want answers, but I am a little pissed off. My gut tells me these guys are not as clean as we would be led to believe.
Personally, I have a tremendous amount of respect for Eric Sprott and his team. He makes his clients a LOT of money. Rick Rule would not have joined forces with Sprott if there was anything nefarious going on. But...
It amuses me how people get caught up with so-called "experts" who are not really experts at all. Kaiser is an example. People follow him, but what makes him a silver expert? How long as he been around the sector? (answer: Nothing, and not that long).
That whole stupid "Wynter Benton" thing is another one. I guess people love the intrigue, but is it really logical to make investment decisions based upon that Wynter Benton idiocy?
The precious metals sector is the most volatile sector on the planet (and silver more so than gold). Investors owe it to themselves to seek out the best of the best when it comes to information on the sector. That means find people with years of experience in the sector, and a track record of success. Why base investment decisions on anything less? The true experts will tell you that silver is not an investment for someone who cannot tolerate an extreme amount of volatility.
One answer: Mining companies is to silver as silver is to gold. Undervalued.
If anything, I would imagine Hedge Funds sold off on this news as well. Information from the SEC could have easily been leaked.
Therefore, it is possible that Sprott was the trigger and the rest followed.
Don't, ever, think people like Sprott are out there to help or rescue you. As long as people have a vested interest in the silver market, they and what they say is most likely aimed to make money for themselves.
In Sprott's case, getting more people to buy PSVL simply means getting more money. How do you get people to buy your fund rather than a different fund? Spin all kinds of yarn about how its not easy to get silver, insinuate that if you had trouble getting your silver then you can't imagine where other ETF's got theirs, and so forth, basically get a rumor mill running.
Currently the manager of PSVL gets a monthly management fee of 1/12 of 0.45% of the value of net assets of the Trust. (it's in their prospectus, page 10 https://www.sprottphysicalsilver.ca/documents/Sprott_Physical_Silver_Trust_Prospectus_US.pdf ). Now, that might not sound much, but consider that the total net asset value of the trust stands at $669,279,407. A bit of calculation brings this to a monthly salary of about $250979. Not bad, a quarter of a million each month.
Sure, in case silver goes up, Sprott management will get even richer, but in case it goes down, it doesn't matter much, as long as people still buy PSVL. So of course will he repeat and repeat that the silver bull isn't over, can't be over. Not that I'm saying we've seen the end of high silver prices, just that Sprott has absolutely no reason to get people to sell PSLV.
And then there's the thing about the premium, which is an absolute marvel if you think about it. Rather than track silver straightaway, PSVL can rise in price depending on demand, thus building up a premium. And of course, this premium is part of the asset value and thus also taxed.
My guess why Sprott is selling? Either he thinks we're going into a longer term correction, or he thinks the premium will go down and he wants to cash in on whoever bought PSVL at too high a price versus the price of silver.
And Sprott is not the only one. The safest way of making money on the silver bull is to sell the bull, meaning, to sell the story to other people. James Turk gets 4%-5% of every transaction on goldmoney.com, Mike Maloney makes a nice sum every year from the premium by selling gold and silver, not to mention by selling his books he writes to entice even more people to buy silver from his site.
Their might not be anything malicious about these people, and I've got a huge amount of respect for their financial acumen. But never, ever, doubt whose side they are on. They'll make money regardless of where silver goes, but they'll make more money if people think silver will go up. When do you make more money? Most probably by avoiding them and finding someone like The Turd.