Eric Sprott On The Silver Raid; Still Sees $100 Silver (Keiser Report Video)

Silver ETF Plunge ($SLV)
Two weeks ago there was a major exhaustion point in the silver chart which resulted in a 33% crash from its peak ($49.30 I believe). SLV (silver ETF) put options and vertical spreads were active and made a lot of money betting on downside risk. I think technicals combined with margin calls, and I'm sure manipulation (which Sprott gets into), played a major role in the plunge. To your left is a SLV chart showing the plunge.

Eric Sprott, who runs Sprott Asset Management, is active in silver and gold, and created the Sprott Physical Silver Trust (PSLV) which trades on the NYSE. He was on CNBC in May 2010 telling you to buy silver which was a great call. A few months later Mr. Sprott gave a presentation at the Casey Research Gold & Resource Research Summit and said "between the ETFs, you and us, there is no (physical) silver left."

Before the major sell off, Sprott sold PSLV units at a premium to NAV, but said he reinvested the proceeds back into silver (spot) or shares. He believes the silver sell off was a "raid" and related to the paper markets, margin increases and the commercial shorts. Zero Hedge explained the details today in a post. Eric Sprott is still very bullish on silver and thinks it could hit $100 an ounce. Watch the video below courtesy of Keiser Report.



Found originally at Zerohedge.com

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