The following Is a extract from an article Sprott wrote a while back, might explain why Sprott paid a 30% premium for a stake In BGS
By: Eric Sprott & David Franklin of Sprott Asset Management
We believe Asian demand for physical gold and silver is akin to a tsunami. While precious metals prices have corrected on the paper exchanges, the inflation resurgence in Asia is quietly driving new, unforeseen levels of physical demand for the metals. While the world continues to float on a sea of paper, this massive wave of physical demand silently threatens to crash into the physical gold and silver market, potentially wiping out tangible supply.
