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Message: No Proof Sprott Selling Gold juniors.

May 25, 2010 02:10AM

Hysteria,

Got Proof? No.

I first heard the "rumor" when Jim Pumplava on the Q-line several weeks ago was explaining to Drnols why Tyhee's SP was down. Jim said that there are two Canada Mutual funds, one much bigger, with new management with a new strategy that was selling its juniors while buying producers. JP never said how much they were selling, but at least he intimated this was the reason why TDC (aka "Mahi") was down.

Further, Kimber's IR man at the New York Hard Assets Investment Conference said Sprott was selling Kimber (and Tyhee), according to a couple of people who were there.

Still no proof!

Webb told me that Sprott has a number of entities where it can sell stock without it becoming obvious they're lightening up on ( or buying) certain companies.

Eric Sprott can still be publicly bullish on gold juniors but, at the same time, could possibly want to unload some explorers.

There are juniors, and then there are Juniors. Tyhee and Kimber Resources are juniors, while so is Minefinders, but Minefinders is a producing junior.

I don't know, but it'd pure speculation to suggest that perhaps Spott is selling only those "juniors" that are at least three years from production? I recall that someone posted on the Kimber forum (perhaps more of a rumor) that Sprott was selling just enough to get below a certain percentage of a company's total shares so as not to have to report its holdings.

And, pardon me for even thinking this, but if one wanted to be nasty and cynical, and I'm not saying Sprott and George Soros are ethically comparable, it might be said (again with no proof) that if Spott is selling juniors, might he, like Soros, be sayng the opposite of what he's actually doing, as was the case when Soros who publicly trashed the idea of gold as a sound investment, was actually buying huge amounts of bullion?

Yet, perhaps if true, and Sprott is indeed selling, maybe the sales are relatively small ones and could be described by what amounts to the innocuous expression of, "re-balancing portfolios"? Suggesting that, if true, we've made too much of this relatively inconsequential issue.

But you, Hysteria, are absolutely correct, at least to the extent that I have seen absolutely no proof to substantiate any of these rumors.

Baires

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