Eric Sprott has filed a prospectus with the Canadian Securities Commission to add a 1.5 billion dollars in additional of his PSLV Trust fund. This will enable him to acquire up to 50 million ounces to his dedicated silver fund.
PSLV is a fund that holds silver in contrast to SLV which contains far more paper derivatives than bullion. In event of a collapse paper will have zero value and silver bars and coins will soar in price.
In 2010 Sprott added 580 million dollars to his fund. Ir took him 2 months to acquire that much silver. When he started, silver was $18 an ounce. The markets currently have been driven down by the collapse of MF Global and the seizure of the assets of 25,000 investors. The Federal Reserve has been paying brokerage houses and banks to naked short silver and gold. I have seen screen shots of the FED risking ten billion dollars your money on one minute to drive down the paper price of silver.
The amount of silver Sprott plans to acquire over the next two months is more than all the silver eagles sold by the US Mint for 2011.
Credit Suisse bank has issued a warning to its customers that the euro could collapse in weeks if not months. An article at Zero Hedge claimed that the MF Global bankruptcy was deliberate in order to drive markets down.
My regular readers know that I said months ago silver would not begin to soar until November. It could take two weeks for Sprott’s prospectus to be approved by the Canadian Securities Commission. I stick by my original prediction that silver will go up faster than gold and that silver will have no resistance except normal profit taking after it passes $53 an ounce. The Federal Reserve will be in the markets naked shorting silver with your money to keep the price below $50. I do not trade silver. I do not have a lot. I just buy and hold junk silver coins which I can use to make purchases after the dollar goes bye bye.
A gold and silver dealer said he has heard that Sprott is already lining up silver to be purchased.
I must caution you that I am not a registered financial adviser. In any event your situation is not known to me so I cannot give you advice. Pleases seek qualified financial advice before investing money. If someone told me to invest in Netfix or SLV, I would walk away. I personally would much prefer http://www.GoldMoney.com which has vaults in London, Hong Kong and Switzerland. James Turk says half of the new funds coming to Gold Money goes to solver which will lower the gold silver ratio over time.
Hugo Chavez Gold Update: Hugo Chavez has demanded the return of 211 tons of gold held in England and in New York. The Bank of England has finally sent the first 1,700 gold bars to Mr Chavez. No word if this is gold liberated by the CIA and MI6 from Libya.
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