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Sprott Silver Bottom

Bob Moriarty
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May 16, 2012

I wrote this a month ago. “A bottom in silver is close. Watch the premium, it will signal the bottom.

If you have been watching the Sprott site, you may have noticed the premium went to 2.89% today. I can’t tell you if that is the all time low, I just know that there have only been 5 days between 2-3% since his fund started. That’s what you are going to see at a bottom.

I can’t say this is the bottom and it won’t go down a penny more but I can say, you will see a record low premium at a new bottom. At $50 silver investors wanted to pay a 26% premium and at $27 silver, people will only pay 2.89% premium. Given that investors are often dumber than bricks and silver investors get really loopy, look for a bottom.

Stocks are starting to sell for less than cash on hand. It doesn’t get any better than that. Forget the herd, forget the “GURUs” and use your basic common sense. Gold, silver and shares are cheap. That’s when to buy. When they get expensive, sell them. It’s no more complicated than that.

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Bob Moriarty
President: 321gold
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