Confidential To Eric Sprott

Dear Eric,

A friend recently sent me this link where there is a quote from Ed Steer:

“I was talking to Eric Sprott yesterday…and asked him how he was making out getting all the silver from his last offering in PSLV.  He told me that they had already received it.”

Now, we all know how you hyped the logistics of the initial delivery of silver from the $PSLV IPO, talking about freshly minted bars and how long it took them to get to you, even though you are the one that structured the delivery terms.   Never mind that – the point is that you clearly think that the receipt of the actual physical silver bars in the Physical Silver Trust is material information.   How could it not be?   After all, the Physical Silver Trust is (in another fit of *incredible* irony) the only major silver exchange traded product that actually issues shares backed by paper silver – the other Trusts issue new shares only after they physically receive the silver.   So we’re all watching eagerly to see when PSLV’s paper silver will be replaced with real silver.

I checked the PSLV website and didn’t see a press release.  I checked the PSLV SEC filing page and didn’t see an SEC filing.  Heck, I even checked the SEDAR filings.  But I found absolutely nothing about the PSLV trust receiving its silver.   Then I started to worry.

See, we have this rule here called Reg FD – Regulation Fair Disclosure – which, if you boil all the legalese* out of it, can be translated into:

“You can’t just tell material non-public information to Ed Steer – you have to tell it to everyone at once.”

Since I’m a major shareholder of your $PSLV Trust (logic explained here,) I certainly don’t want the SEC to get all up in your grill and start hassling you for not complying with the rules.   So maybe you wanna get that 8k filed ASAP – just sayin’.

While you’re at it, it might get the silverbugs fired up if you explain away the quick delivery of this recent silver purchase by blaming it on the Evil Banksters destroying Eastman Kodak in order to plunder their legacy photographic silver stash.   If that doesn’t work, mumble something about MF Global, and use the word hypothecation – we’ll get that PSLV NAV premium back up to double digits in no time.

Thanks in advance,

your adoring follower,


I currently have a long $PSLV vs short $SLV greater fool trade position on, which is subject to change at any time


*Reg FD Executive Summary from SEC.Gov:

Regulation FD (Fair Disclosure) is a new issuer disclosure rule that addresses selective disclosure. The regulation provides that when an issuer, or person acting on its behalf, discloses material nonpublic information to certain enumerated persons (in general, securities market professionals and holders of the issuer’s securities who may well trade on the basis of the information), it must make public disclosure of that information. The timing of the required public disclosure depends on whether the selective disclosure was intentional or non-intentional; for an intentional selective disclosure, the issuer must make public disclosure simultaneously; for a non-intentional disclosure, the issuer must make public disclosure promptly. Under the regulation, the required public disclosure may be made by filing or furnishing a Form 8-K, or by another method or combination of methods that is reasonably designed to effect broad, non-exclusionary distribution of the information to the public. “

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