Sprott Comments On Liquidity Disconnects Between Paper And Physical Silver Market

Posted: January 10, 2011 in Current Events, Financial Survival, Precious Metals, Silver

We have discussed on this blog there will be a point where the physical silver market and paper silver market disconnect, according to billionaire investor Eric Sprott this is beginning to happen.  On 11/10/10 Sprott contracted to purchase 22,298,525 ounces of physical silver, as of 12/31/10 a total of 20,919,022 was delivered to their silver trust.  Sprott is expecting to have the additional 1,379,503 delivered by 1/12/11. 

As you can see the physical market is drying up.  Eric Sprott said the following “Frankly, we are concerned about the illiquidity in the physical silver market” .  Eric went on to say: “We believe the delays involved in the delivery of physical silver to the Trust highlight the disconnect that exists between the paper and physical markets for silver.”

Folks be prepared for extreme volatility in the silver market moving forward.  As the disconnection continues volatility will increase.  There are a lot of shenanigans being played in silver, the easiest thing for you to do is continue to accumulate.  Continue to watch the physical silver market, the paper market may soon completely disconnect from the physical market.

Full Article Here


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