I know that PSLV is relatively popular in the silver community, so I decided to do some research and discover for myself why everyone swears by it. What I found was that PSLV is actually an exceptionally POOR investment, and there is actually little to no difference between it and SLV.
Tonight I'd like to discuss a little known secret buried deep into PSLV's prospectus under the category of tax consequences. Are you aware that if you redeem PSLV units for physical silver bullion, you must pay income tax on any profits between the selling price of the silver bullion to you and THE ORIGINAL PRICE PAID BY THE TRUST. In other words, if the Trust purchased physical silver in the summer 2010 at $15/oz, and delivered silver to you tomorrow, you would have to pay taxes on the difference between $15 and $28. YOU, as a unit holder (not shareholder), must pay income taxes on any profits the Trust gained and the cost basis is NOT when you bought the units, but rather when the Trust originally bought the silver.
PSLV: Not what you think.
More secrets revealed soon....
When Sprott launched PSLV, he owned ~26% of all the units. Large banking institutions on Wall Street owned the rest of the "units." The fact that Morgan Stanley - a bank that has been accused numerous times of market manipulation - was chosen as a lead underwriter is very strange, especially given Sprott's constant hype about how sinister and manipulative the big banks are - but that's another topic for this thread.
Here's the 13G showing Sprott owning ~26%:
After two years of pumping PSLV and doing numerous media events where he encourages everyone to buy his fund, his personal ownership is down to ~4% from ~26%. His most recent 13G form was filed in December and showed that he has basically dumped all his "units" into the investment portfolios of the ever-gullible retail investor.
From December 2012:
EVERYONE in PSLV has lost money. EVERYONE. The fact that Sprott would liquidate his PSLVunits so quickly really makes one wonder what his intention with PSLV was in the first place. It certainly could not have been to make his followers wealthy.
PSLV Exposed: it's not what you think....
As I've pointed out in the above posts, since the IPO of Sprotts PSLV, he has sold most of his shares for massive premiums to unsuspecting retail suckers. And here's he is again this past week, selling like crazy:
Here is Eric Sprott selling off millions more of his Silver Trust units (shares) this past week:
And, of course, here he is a few weeks ago telling everyone that silver is going over $100:
Here is Maria Bartiromo from March 27, 2013 doing a "Sprott Infomercial" wherein Sprott says he's "all-in" in precious metals. 4 days later, as the above link shows, Sprott began HEAVY SELLING in his fund...
Eric Sprott: billionaire hedge fund shark? or looking out for the retail investor?
Setting aside the money honey interview, can you address the silver supply issue that we raised over this past weekend.
2011 and 2012 US mint silver sales were around 950 metric tons of silver.
Mining supply in the US was 1050 mt.
RioTinto's Kennecott mine was 100 mt of the production.
In your opinion is silver a monetary metal or industrial?
Name one government entity or commercial player who is not in the silver industry who accepts silver bullion as payment for debts. When you've answered that question you'll have your answer about whether silver is money or a commodity.