Wednesday, January 18, 2012

Sprott Physical Silver Trust Announces Follow-on Offering of Trust Units

TORONTO, ONTARIO--(Marketwire - Jan. 17, 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 launched a follow-on offering (the "Offering") of transferable, redeemable units of the Trust ("Units").

The Trust will use the net proceeds of the Offering to acquire physical silver bullion in accordance with the Trust's objective and subject to the Trust's investment and operating restrictions described in the prospectus related to the Offering. Under the trust agreement governing the Trust, the net proceeds of the Offering per Unit must be not less than 100% of the most recently calculated net asset value per Unit of the Trust prior to, or upon determination of, pricing of the Offering. – Sprott Physical Silver Trust announcement continues at the link below.

Source:  Sprott Physical Silver Trust (PSLV) via MarketWatch

Comment:  With a premium now in excess of  24%, we cannot recommend this silver trading vehicle until such time as the premium returns to a more reasonable level.  Premium is the amount investors have bid up the shares over the net asset value of the trust’s silver holdings.    


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