The Ultimate Silver Bug!

[Copper Catcher]

TORONTO, ONTARIO--(Marketwire - Jan. 18, 2012) - Sprott Physical Silver Trust (the "Trust") (TSX: PHS.U)(NYSE: PSLV), a trust created to invest and hold substantially all of its assets in physical silver bullion and managed by Sprott Asset Management LP, announced today that it has priced its follow-on offering of 23,000,000 transferable, redeemable units of the Trust ("Units") at a price of US$13.20 per Unit (the "Offering"). As part of the Offering, the Trust has granted the underwriters an over-allotment option to purchase up to 3,450,000 additional Units. The gross proceeds from the Offering will be US$303,600,000 (US$349,140,000 if the underwriters exercise in full the over-allotment option).

http://www.streetinsider.com/Press+Rele ... 89371.html


Seeing all this unfold I have to wonder out loud: With all this physical silver being purchased and taken out of the market, at what point will the price actually reflect the real value of silver? That, my friend, is the billion dollar question....

We wait and see....

[68Camaro]

I noted this in my little market thread, without the quote and link though, so thanks for that. I made a few comments on it, the gist of which is that this explains in part both why the PSLV premium rose last week, as well as what happened to it today when the offering came out at 13.20. This is just the first 20% of his pending offerings, about 10,000,000 oz at current prices. Silver spot is clearly up today as a result. I think we will see some serious silver action in the coming months because of this and the following offerings, not including any other effects.

[beauanderos]

I noted this in my little market thread, without the quote and link though, so thanks for that. I made a few comments on it, the gist of which is that this explains in part both why the PSLV premium rose last week, as well as what happened to it today when the offering came out at 13.20. This is just the first 20% of his pending offerings, about 10,000,000 oz at current prices. Silver spot is clearly up today as a result. I think we will see some serious silver action in the coming months because of this and the following offerings, not including any other effects.

So how does this work? He hasn't actually bought the silver yet, but will do so in increments as share purchases require?

[68Camaro]

Haven't read the fine print, but that's what I presume. I don't know if the plan requires that they buy within a certain time frame of accepting the cash, or if they have a max cash reserve, etc. Presume there are some rules like that. He will be dollar cost averaging...