BREAKING: Silver Miner To Buy Into Sprott's PSLV; Start Holding Silver In Lieu Of Cash

Update 2: In fact it was First Majestic; Endeavour did something different (held back inventory). Here it is straight from First Majestic's Todd Anthony (again, via Jim Willie):

Update: Max Keiser informs me that the miner is actually Endeavour Silver and you can hear about it from Sprott himself on his latest King World News interview (I haven't listened yet). Thanks Max!

Original post:

Via man of letters Jim Willie comes this news that a major silver miner has bought in to Sprott's latest PSLV offering (linked above is Jim's latest public article). This means that miners are starting to wake up to Sprott's call to keep their cash in silver rather than fiat money. The ramifications may quickly become huge.

From: N...
Sent: Thursday, January 26, 2012 9:05 PM
To: jimwilliecb@gmail.com
Subject: Re: Mktng in nYc today - hearing that blackrock is launching a
 massive silver equity etf
 
Yes I know but this is a mining etf not the metal 
You are probably right. Initially a pop then shorting of all equities 
till kingdom come
I dont trust the slv or gld that's why my largest holdings are pslv and 
phys
 
Here's an exclusive for your newsletter . I checked with Keith 
 
Ag first majestic took part in the PSLV recent financing 349 million
which closed monday the only silver miner to do that
The amount is 10 million of the financing
So it seems Eric Sprott's message to the silver miners of holding excess
 cash in silver taking shape
 
Another nail on the coffin for comex as miners seek to end the
manipulation

Other miners, are you paying attention? Note that by holding your silver this way, you get access to the premium that exists for exchange-marketable closed-end shares that have proven physical. In other words, if First Majestic needs to go back into cash, they can "instantly" sell their shares, and at a premium to physical (so long as a premium continues to exist for the Trust units).

So not only is there no liquidity "risk" to holding silver in lieu of cash, you will actually make more money from your silver should you have to sell it through such a vehicle. So there is no reason not to do it.