Silver has been hot lately. The theory seems to be that gold and silver should move up and down somewhat in tandem, and gold has seen such huge gains lately that its gravity should pull up silver too. Local fund manager Eric Sprott has predicted great things for silver and has created a fund representing actual silver bullion (PHS-U.TO).
Well, silver took a huge dip this week. Sprott’s silver fund is down from last week’s close of 21.65 to this week’s close of 15.76 (down 27%!). Interestingly Sprott’s hedge funds sold their holdings in his silver fund in late April. Indeed, Sprott sold his own holdings. That makes him a smart investor, but perhaps not too popular with his silver investors!