06 January 2015

NAV Premiums of Certain Precious Metal Trusts and Funds - Another 30,000 Gold Ounces Redeemed

Sprott Physical Gold Trust saw about 30,000 ounces of gold bullion redeeming, with a commensurate elimination of unit shares in the exchange.  That makes it about 66,680 ounces, or 2 tonnes, redeemed at these prices since December 1, 2014.  
The withdrawal from Sprott Gold Trust is an indication of the mispricing of gold bullion and the tightness and leverage behind the scenes in the physical gold market.

The Sprott Physical Silver Trust's cash levels have fallen below one million. There is going to be a secondary offering to bulk up those cash levels some time this year.

While the spike in gold and silver prices today were enjoyable for those who are bullish on the metals, these sharps rises and drops are symptomatic of the highly leveraged paper pricing that is called the Comex.

And one's mind goes back to the last high, which was ruthlessly driven down by equally baseless, paper selling.

There is a Non-Farm Payrolls Report on Friday. Let's see what happens with this.