23 October 2012

Net Asset Value Premiums of Certain Precious Metal Trusts and Funds


GTU must be a difficult borrow, since it maintains a robust premium during an obviously calculated raid on the metals.  It is thinly floated as these things go, and there are no options on it that I can find.

Subsequently I am told there are no shares available for borrow by several brokers.  Whether this is a general condition everywhere I do not know.

The financial firms obtain a number of Sprott shares from the underwritings. This can be used for the borrow game, and are probably subject to leverage and naked shorting at that given the condition of the shorting and clearing in these equity markets.