Eric Sprott Dispels One of the Greatest Silver Myths

One of my favorite myths in the online silver bug community is that there is a “paper” price for silver – that’s the one that the infidel banksters manipulate – and a “physical” price for silver – the one good God-fearing silver warriors pay for real hard physical metal.  People who believe this myth think that the spot price that you see on the screen isn’t real – they think that “real” “PHYSICAL” silver actually costs more than that.  Well it does – for some people – but it’s got nothing to do with physical vs. paper – it’s one of the simplest concepts in sales/retailing: the difference between wholesale prices and retail prices. If you buy an ounce, or a hundred ounces of silver from a coin dealer, or even an online distributor, you pay a premium to spot.  That’s how these dealers make their money.

Larger silver buyers, however, pay no retail premium – they buy silver at spot.   But don’t take my word for it – take the word of The Silver Fox, Eric Sprott. Sprott says, at 3:19 of this interview, verbatim:

We can buy silver, basically, at spot.”

Of course, Sprott was explaining why he sold his PSLV shares which were trading at a huge premium to Net Asset Value – a topic I’ve covered at length on these pages, even before his sale was officially announced.

This should come as no surprise – of course Eric Sprott can buy silver at spot – that’s what SPOT means – it’s the price of silver for people who have the ability to buy wholesale quantities.

Don’t confuse wholesale vs. retail with paper vs. physical


I am long May SLV calls and puts.



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