My view:In an attempt to better position its products, Sprott Asset Management announced an $898 million hostile bid for two competing funds backed by gold and silver.According to the company’s latest press release, Sprott intends to acquire the Central Gold Trust (GTU) and Silver Bullion Trust (SBT), two funds similar to its own physical gold and silver funds. The offer would entail GTU and SBT unitholders to trade their units for units into Sprott’s funds.“Sprott today announced that it intends, together with Sprott Physical Gold Trust, to commence an offer (the "GTU Exchange Offer") to acquire all of the outstanding units of GTU and, together with Sprott Physical Silver Trust, to commence an offer (the "SBT Exchange Offer") to acquire all of the outstanding units of SBT,” the release said.“The aggregate value of these proposed transactions would be approximately US$898 million and the resulting Sprott Physical Trusts would be highly-liquid, best-in-class bullion vehicles managed by a firm with a globally-recognized precious metals franchise,” it added.
Between the hostile take over of other physical precious metal funds and the hording by JP Morgan of hundreds of thousands of ounces of physical silver (just announced), it seems that the fiat currency confidence game will soon be concluded.
If futures markets are not easily manipulated by the bullion banks, what is to stop the price of gold and silver from shooting upward?
By summer, we should also find out the true holdings of China's gold reserves that have not been updated since 2010. Their desire to be included in the IMF's SDR will give some transparency to their opaque financial holdings.
Every month that passes there seems to be more evidence that the US dollar's reign of reserve currency is rapidly coming to a close.
Are we prepared?