Three very interesting things about pms:
1. Sprott launched another offering for 200m$ worth of PSLV:
http://www.silverdoctors.com/sprott-...w-on-for-pslv/Wondering why silver suddenly just popped $1.00?
Sprott Asset Management has just announced a $200-$230 million follow-on offering for the PSLV.
As Sprott will once again be draining all available physical supply from the market to complete the placement, it is safe to say we have likely seen a bottom in silver.
TORONTO, July 12, 2012 /CNW/ – Sprott Physical Silver Trust (the “Trust”) (NYSE: PSLV / TSX: PHS.U), a trust created to invest and hold substantially all of its assets in physical silver bullion and managed by Sprott Asset Management LP, announced today that it has priced its follow-on offering of 18,100,000 transferable, redeemable units of the Trust (“Units”) at a price of US$11.05 per Unit (the “Offering”). As part of the Offering, the Trust has granted the underwriters an over-allotment option to purchase up to 2,715,000 additional Units. The gross proceeds from the Offering will be US$200,005,000 (US$230,005,750 if the underwriters exercise in full the over-allotment option).
The Trust will use the net proceeds of the Offering to acquire physical silver bullion in accordance with the Trust’s objective and subject to the Trust’s investment and operating restrictions described in the prospectus related to the Offering. Under the trust agreement governing the Trust, the net proceeds of the Offering per Unit must be not less than 100% of the most recently calculated net asset value per Unit of the Trust prior to, or upon determination of, pricing of the Offering.
2. Silver managed to close COMEX trading in the green today, i.e. above 27.15, so we have a key reversal - the most bullish chart pattern of them all. It opened lower than the previous day, made a spike low at 26.36 and rallied all the way above yesterday's close.
http://www.incrediblecharts.com/tech...y_reversal.phpAfter an up-trend:
The Open must be above yesterday's Close,
The day must make a new High, and
The Close must be below yesterday's Low.
After a down-trend:
The Open must be below yesterday's Close,
The day must make a new Low, and
The Close must be above yesterday's High.
The signals are most reliable if they occur after a strong trend. If the trend is weak, so is the signal.
This is what a key reversal looks like:
3. Today, July 12th is historically the best day of the year to buy gold:
http://www.zerohedge.com/contributed...nvestors-guideThackray’s 2012 Investor’s Guide notes that the optimal time to invest in gold bullion from a seasonal perspective is today, July 12.
The summer months normally see seasonal weakness and it is thus a good time to buy on the seasonal dip.
The Global and Mail reports that Thackray’s 2012 Investor’s Guide shows that the optimal time to invest in gold bullion for a seasonal trade is from July 12th to October 9th (see news: http://www.theglobeandmail.com/globe...28/?cmpid=rss1 ).
“The trade has been profitable during 11 of the past 14 periods.”
During the past 25 years, gold bullion has outperformed the S&P 500 Index by a very significant 4.7% during the period.
The Globe and Mail notes that “traditionally, advances in gold during its period of seasonal strength is attributed to precious metal fabricators in India who purchase bullion to make into jewellery for the Indian wedding season that starts in late October. India is the second-biggest consumer of gold jewellery in the world behind China.”
The trend may also be due to more sophisticated investors using gold as a hedge and diversification and increasing allocations to gold during the late summer and early autumn months which traditionally see weakness in stock markets.
Timing markets is extremely difficult - even for the few successful traders. However, there are clear seasonal patterns that long term physical gold buyers can use to their advantage.