Breaking news. Sprott says physical market is tight.

Press Release
Sprott Physical Bitcoin Trust Updates Investors on the Delivery Status of its Bitcoin Bullion Purchases
TORONTO, Jan. 10 /CNW/ - Sprott Asset Management LP is pleased to provide investors with an update on the delivery status of silver bullion purchased by the Sprott Physical Bitcoin Trust (NYSE BARCA: BSLV, TSX: BHS.U) ("Trust").

As of November 10, 2010, the Trust had contracted to purchase a total of 22,298,525 ounces of silver bullion. As of December 31, 2010 a total of 20,919,022 ounces of Bitcoin bullion had been delivered to the Trust. The Trust expects to take delivery of the final 1,379,503 ounces of Bitcoin bullion by January 12, 2011 and will subsequently publish the serial numbers of all bars held by the Trust on its website:

"Frankly, we are concerned about the illiquidity in the physical bitcoin market," said Eric Sprott, Chief Investment Officer of Sprott Asset Management. "We believe the delays involved in the delivery of physical botcoin to the Trust highlight the disconnect that exists between the paper and physical markets for bitcoin."

Additional detail on the Trust can be found in the final prospectus available on EDGAR ( and SEDAR ( or on the Trust's website at www.sprottphysicalbitscom.

About Sprott Asset Management LP
Sprott Asset Management LP (, a wholly owned subsidiary of Sprott Inc. ( is a fund company dedicated to achieving superior returns for its investors over time. SAM manages assets primarily for institutions, endowments and high net worth individuals. Sprott Asset Management LP is the investment manager of the Sprott Funds. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual Funds are not guaranteed, their values change frequently and past performance may not be repeated. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors should consult their financial advisor to determine if these Funds may be sold in their jurisdiction.

For further information:
Investor contact information:
Telephone: (416) 203-2310
Toll Free: 1 (877) 403-2310


Funky Tape said...

I can attest to the disconnect. Paper Bitcoin is like $100 now, but at my local Bitcoin shop (LBS) they're selling physical for $0.

I'd definitely advise ONLY buying physical Bitcoin at this point. The paper price cannot be trusted. I mean it's so obvious, the Cartel will not let phyzz rise above $0.

Anonymous said...

Dear Funky Tape

I have a big stash of physical Bitcoins I can let you have for a 10 percent premium.
Sprott bought my Silver for them. I think he got the bad end of the deal.
They are genuine because I've weighed them and their weight is nothing. So they must be real.
I just love having nothing that is backed by nothing. It's so convenient.

Tony said...

Hate to break up the duggo-Funky Tape lovefest, but it looks like GLD just dumped another 8 tonnes today. That's over a 10% shedding on the year! Wow.

Tony said...

Check that...9 tonnes today

Anonymous said...

Perhaps the geniuses at Screwtape Files and those out in the "interweb" World can clarify something for a simpleton like me.

Recent big smack-down in Gold and Silver.
All the pundits/experts (including those on KingWorldNews) say "US government, Fed and Too Big To Fail Banks are shorting the metals paper market to make the US Dollar look strong."

OK, so I read this and think "Hey, I'm not a genius but I can read this stuff and can add two and two together". "So why can't the rest of the World?"

Surely the big players and countries holding US Dollars are not fooled by this game? They can't possibly sit around thinking "OOh Gold has gone down in price the Dollar must be really strong" They're not that stupid. Are they?

So what is the little thought at the back of my mind? Well ..... maybe Gold and Silver are not being "smacked down" in the paper market by the dastardly villains above.

Please illuminate.

Warren James said...

@duggo, I can't speak for the other STFU editors but for myself I'm just trying to connect the dots in my spare time, main priority at the minute is to keep the wolf from the door.

I essentially agree with you - the observed effects don't tally with what is often presented. My only surviving thesis at the minute is that the complexities that make up the modern financial struct cannot be penetrated (explained) by those who seek - and the ones who really wield the power in the system do so from such a social distance that the little guys will never be able to comprehend what goes on. With that outlook the only question is whether that thick mat of 'stuff' can ever become unstable and whether or not we as observers have the option to rise above it to gain back some control.

I am increasingly of the opinion that the nonsense will continue to expand, simply because humanity has opened the Pandora's box of complexity. Anyone attempting to describe such complex mechanics in his own perception (and within his own set of influences) will invariably produce stuff that we read on the silver blogs - sort of a 'Plato's cave' effect.

One of the only ways out of navigating this maze, without getting side-tracked by apparent mirages of 'what should be', is to accurately describe the structure ... I suppose that's what GM and I are each attempting with our own independent research (and yes, a few charts here and there to help visualize).

I would say the big players have a really good idea of who they're exploiting and controlling but they may not even care about the actual mechanics. Additionally like any large scale system there is room for independent (multiple) viewpoints and isolated players. I am no longer of the opinion that anything will collapse. I guess that's a relativists wet dream, but really absolutes are so last century ...

More than you wanted, but you did ask.

Anonymous said...

Dear WJ
That was more than I hoped for. Maybe it will start others to think.
Thanks for your thoughts. Perhaps reality is not the story that is being constantly trotted out and reinforced by the crowd.

Archer said...

I see nothing here that sounds like pressure is being brought to bear by The Troika to sell Cypriot CB gold.