“Sprott Has More Physical Silver Now Than Ever!”

With silver recently plummeting from $50 to the $40 area, today King World News interviewed Eric Sprott, Founder of Sprott Asset Management to clear up some misperceptions about Sprott’s sales of PSLV.  There is a great deal of misinformation out there regarding what Sprott was actually doing when SAM sold some PSLV.  When asked about what has transpired Sprott remarked, “Well Eric in response to your question, any proceeds that we’ve received from selling PSLV have immediately gone back into silver or other silver equities.  And I can tell you we have the highest position in physical ownership that we’ve ever had, and we have not lost one ounce of our encouragement for the outlook for the silver price.”

Sprott continues:

“I sort of regard the things that are going on in the (silver) market as basically some group of traders working to get the price down quickly, particularly the overnight action on Sunday night when it (silver) goes from $48 to $42 in whatever it was, 9 or 13 minutes.  It’s a travesty of a trading system that would happen.  

We’ve been committed to silver and the fundamentals for silver and people’s interest in silver, so it would be massively incorrect to suggest we think silver has hit a high.  We don’t think that at all, I’ve suggested it (silver) should trade at a ratio of one to sixteen to gold.  Gold I am sure will be $1,600 not too long from now, and by implication that would suggest it (silver) could trade up to $100 and I’m not shying away from that.” 

When asked if the sale was small compared to overall holdings Sprott replied, “Well, relative to what we owned it was an incredibly small sale.  As a portfolio manager we have to manage the portfolio and there were other things that were underperforming PSLV that we thought we should reinvest our money in so that’s exactly what we did, all in the silver area...Our position in silver today in physical ounces is higher than it’s ever been.” 

Another mainstream outlet put out a story today about Sprott selling silver and buying mining shares.  The truth is that Sprott Asset Management has in fact increased its holdings of physical silver to the largest level ever and the KWN audio interview with Eric Sprott explains his stance on the the silver market, Sprott Asset Management’s position in physical silver and more.  To hear the interview CLICK HERE.

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