Sprott put a bid in..

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DSAbug

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http://www.silverdoctors.com/sprott-announces-230-million-follow-on-for-pslv/

Wondering why silver suddenly just popped $1.00?
Sprott Asset Management has just announced a $200-$230 million follow-on offering for the PSLV.
As Sprott will once again be draining all available physical supply from the market to complete the placement, it is safe to say we have likely seen a bottom in silver.



TORONTO, July 12, 2012 /CNW/ – Sprott Physical Silver Trust (the “Trust”) (NYSE: PSLV / TSX: PHS.U), a trust created to invest and hold substantially all of its assets in physical silver bullion and managed by Sprott Asset Management LP, announced today that it has priced its follow-on offering of 18,100,000 transferable, redeemable units of the Trust (“Units”) at a price of US$11.05 per Unit (the “Offering”). As part of the Offering, the Trust has granted the underwriters an over-allotment option to purchase up to 2,715,000 additional Units. The gross proceeds from the Offering will be US$200,005,000 (US$230,005,750 if the underwriters exercise in full the over-allotment option).

The Trust will use the net proceeds of the Offering to acquire physical silver bullion in accordance with the Trust’s objective and subject to the Trust’s investment and operating restrictions described in the prospectus related to the Offering. Under the trust agreement governing the Trust, the net proceeds of the Offering per Unit must be not less than 100% of the most recently calculated net asset value per Unit of the Trust prior to, or upon determination of, pricing of the Offering.
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I was just musing a few days ago (to myself and not online) about the possibilities of this happening. It will be interesting to see how tight the supply of physical gets now. $200MM on the conservative side is going to run well over 7MM ounces of silver.
 
What I find interesting is that almost all holders of silver that I have talked to have no interest in selling. They are only adding to their stack.

So ... why would they be excited about the price going UP? If one has no immediate plans of either buying or selling, then the price doesn't really matter.

If one has plans to buy, then get excited when the price is manipulated down.

If plans are to sell in the near future, only then should there be any positive interest in seeing the price rise.

The psychology of many PM holders is far more interesting than any daily fluctuation of price in my opinion.
 
is it just that we try to convince ourselves and others that buying PM's is not so dumb ?

All i want em to do is track real inflation .........
 
Jetstream said:
What I find interesting is that almost all holders of silver that I have talked to have no interest in selling. They are only adding to their stack.

So ... why would they be excited about the price going UP? If one has no immediate plans of either buying or selling, then the price doesn't really matter.

If one has plans to buy, then get excited when the price is manipulated down.

If plans are to sell in the near future, only then should there be any positive interest in seeing the price rise.

The psychology of many PM holders is far more interesting than any daily fluctuation of price in my opinion.
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It is not the increase in price that interests me. It is the phycial base of the paper manipulation being attacked by someone willing to buy large amounts of silver and demand physcial delivery.
$.02
 
Case against paper manipulation:
http://www.321gold.com/editorials/moriarty/moriarty071312.html

"Everything is manipulated and no one has lost a dime based on silver or gold being manipulated down. It’s just not so. All commodites go up, all commodities go down. There are many reasons why. Manipulation of gold and silver, if true, has been the biggest failure of the last dozen or so years if someone was trying to knock the price down."

Discuss!
:popcorn:
 
Eric Sprott is doing what I wish I had the steam to do myself. He is removing silver from the market for his clients [shareholders] and keeping it in a safe place. Until Da Boyz find a way to relieve him of it, he will have the only silver pile in the world that does what it is supposed to do, and that is exist in the real, tangible physical form.
 
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PMBug said:
Everyone likes validation.
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I can see that. My point is the excitement I see on so many boards and commentaries over DAILY even HOURLY changes. Validation comes from an upward trend over at least a few weeks, not a 20 minute spike.
I repeat, the actions of many PM holders is not consistent with what they say. That doesn't make it necessarily good or bad, but like I said ... interesting for its inconsistency.
 
Sprott had this to say regarding the latest Sprott Silver Trust offering: “We thought the timing was good in the sense that the silver price has been in the doldrums and there would be some underlying interest in the metal. We were happy the announced offering reached the target of $200 million because the issuing market is not very robust these days.

So we were quite happy with the results. And initially it will allow us to buy seven million odd ounces of silver, which we haven’t bought yet, but it will certainly help the silver market.”
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http://kingworldnews.com/kingworldn...ening_Black_Swan_Nobody_Is_Talking_About.html
 
I remember reading one idiot saying that sprott was the one "chasing" on the day of the announcement. He even wrote some long article about it and came to the conclusion that sprott was actually expecting silver to drop because he didn't get the entire order done in one day. It was ludicrous.
 
The recent fully subscribed $200 million offering of new units by the Sprott Physical Silver Trust has received an additional boost by the offer underwriters - Morgan Stanley and RBC Capital Markets - taking advantage of an option that enables them to buy additional units on their own accounts. The two underwriters have between them taken up1.8 million units, in addition to the 18.1 million units on offer at US$11.15 each, bringing the amount raised by the Trust to a little over $220 million.

As previously noted here, Sprott plans to use the proceeds to purchase, and take delivery of physical silver to the value of the amount raised, which at current silver prices would amount to some 8 million plus ounces of physical metal.
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http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=156407&sn=Detail
 
I'm kind of confused here. How can Hans Tulving move thirty million in silverr through his shop with no trouble, yet Eric Sprott can't seem to find enough silver? Maybe he should hook up with tulving? I agree that 20 million dollars is nothing to sneeze at, but at 28.00 an ounce, that's only 714,285 ounces. While that seems like a lot, it's only a little over 20,000 kilos.

When i look at the COT, I see lots of reports showing larger amounts than that being moved in to the customers vault.
 
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And courtesy of Ed Steer, we learn that Eric Sprott received a tiny 320,000 ounces of silver that he purchased.

He still has more than 1 million ounces left to go to complete his deal. Already it has taken 44 days to receive just under 7 million ounces out of 8 plus million.

(courtesy Ed Steer)


Sprott's Physical Silver Trust reported receiving 320,000 ounces of silver yesterday...and still has over a bit over a million ounces left to be delivered from their latest offering. Since they got the first tranche on July 11th, they have received just under seven million ounces...and since they purchased a bit more than eight million ounces, they're just awaiting the balance...44 days [6+ weeks] since receiving the first shipment. It will be interesting to see how long it takes to get the rest. From this information it should be obvious that good delivery bars are not exactly laying around.
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http://harveyorgan.blogspot.com/2012/08/saturday-august-25-2012-republican.html
 
Interesting news. I'm gonna call my local dealer (the biggest in Switzerland) and ask him about tightness in the market.

Zürich is a major pm marketplace, so he has very good market insight.
 
I've talked to my local dealer today. He still has ample supply of standard / good delivery bars (1000 oz) but also said that demand has been picking up during the last month, including from institutional investors.
 
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