This premium is ridiculous. His PHYS gold fund was once also
above 30% premium and fell back to 3%. There is no rationale for
this other than temporary emotion. There are other options for
investing in the price of silver w/o risking an additional 30% loss
due to excessive premium.
Posted by jdaswani on 10th of Jan 2012 at 11:13 am
recall reading somewhere its not 100% silver bullion. I think
they are levered off it. But dont hold me to it..I have not
confirmed this myself by reading prospectus. maybe ZeroHedge or
someplace like that.
As the Silver is fully allocated to 97% of the fund value with
the Royal Canadian Mint.
Bear in mind I am not recommending the Trust as I prefer
physical, but it is the only trust I know of outside of the banking
system where the bullion has maybe a hundred different names on
it.
"Investors can enjoy the security of knowing that the Trust’s
physical silver bullion is fully allocated and segregated in a
secure LBMA-approved third party storage location in Canada."
As I stated earlier the reason for the premium could be that
Large Investors/Institutions could not deal with the physical
delivery. And can you take physical delivery in your 41K?
Some large investors/institutuions perhaps are not in a position
to handle physical bullion??I mean who would trust the CME... Can't
think of any other reasons.
I know there is a lot of demand for Sprotts Trust as he was
wanting to buy 1.5Bln oz,s last year and has had difficulty in
obtaining it. Hence perhaps the price squeeze? The last bulk
purchase he made he had to wait for it to be minted, ie not
available on the market.
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Sprott Silver Trust now 34.22% Premium...
Posted by saturn6 on 10th of Jan 2012 at 04:20 am
http://sprottphysicalsilvertrust.com/NetAssetValue.aspx
Silver Coin Sale
( oz. / #coins)
3,957,000
3,957,000
Sprott Silver
Posted by sethbru on 10th of Jan 2012 at 09:48 am
This premium is ridiculous. His PHYS gold fund was once also above 30% premium and fell back to 3%. There is no rationale for this other than temporary emotion. There are other options for investing in the price of silver w/o risking an additional 30% loss due to excessive premium.
Options for investing in Silver?...
Posted by saturn6 on 10th of Jan 2012 at 09:52 am
Like what??...Please explain.
Try looking at SIVR
Posted by ditch on 10th of Jan 2012 at 09:57 am
Try looking at SIVR
SIVR - Custodian HSBC Bank?...
Posted by saturn6 on 10th of Jan 2012 at 10:01 am
No Thanks!
SLV
Posted by zwyss on 10th of Jan 2012 at 10:04 am
What is the difference to SLV?
SLV is invested in 100 % Silver bullions
recall reading somewhere its not
Posted by jdaswani on 10th of Jan 2012 at 11:13 am
recall reading somewhere its not 100% silver bullion. I think they are levered off it. But dont hold me to it..I have not confirmed this myself by reading prospectus. maybe ZeroHedge or someplace like that.
SLV that is
Sprott Trust is Fully Redeemable...
Posted by saturn6 on 10th of Jan 2012 at 11:31 am
As the Silver is fully allocated to 97% of the fund value with the Royal Canadian Mint.
Bear in mind I am not recommending the Trust as I prefer physical, but it is the only trust I know of outside of the banking system where the bullion has maybe a hundred different names on it.
"Investors can enjoy the security of knowing that the Trust’s physical silver bullion is fully allocated and segregated in a secure LBMA-approved third party storage location in Canada."
http://sprottphysicalsilvertrust.com/
The difference SLV - Physical Bullion...
Posted by saturn6 on 10th of Jan 2012 at 10:05 am
Held outside of the banking cabal
Physical
Posted by jdaswani on 10th of Jan 2012 at 09:54 am
Physical
Obviously apart from physical!!
Posted by saturn6 on 10th of Jan 2012 at 09:58 am
As I stated earlier the reason for the premium could be that Large Investors/Institutions could not deal with the physical delivery. And can you take physical delivery in your 41K?
yep exactly and I agree
Posted by matt on 10th of Jan 2012 at 09:50 am
yep exactly and I agree Sethbru
Can you explain?
Posted by zwyss on 10th of Jan 2012 at 04:49 am
Why should someone buy this with such a premium when he can just buy physical silver much cheaper?
Doesn't make sense at all to me....
Hard to understand but...
Posted by saturn6 on 10th of Jan 2012 at 04:55 am
Some large investors/institutuions perhaps are not in a position to handle physical bullion??I mean who would trust the CME... Can't think of any other reasons.
I know there is a lot of demand for Sprotts Trust as he was wanting to buy 1.5Bln oz,s last year and has had difficulty in obtaining it. Hence perhaps the price squeeze? The last bulk purchase he made he had to wait for it to be minted, ie not available on the market.