Sprott’s PSLV Thursday announced a follow-on offering, the proceeds of which will again be used to acquire physical silver bullion.
The offering will be made in both the US and Canada by Morgan Stanley and RBC Capital Markets.
From Sprott Physical Bullion Trusts:

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

Nov 8, 2012

TORONTO, Nov. 8, 2012 /CNW/ – Sprott Physical Silver Trust (the “Trust”) (NYSE: PSLV) (TSX: PHS.U), 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.

The Units are listed on NYSE Arca and the Toronto Stock Exchange under the symbols “PSLV” and “PHS.U”, respectively. The Offering will be made simultaneously in the United States and Canada by underwriters led by Morgan Stanley and RBC Capital Markets in the United States and RBC Capital Markets and Morgan Stanley in Canada.

Copies of the U.S. prospectus related to the Offering may be obtained by contacting Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, New York 10014 Attention: Prospectus Department (telephone 866-718-1649 (toll free) or 917-606-8474) or by e-mailing [email protected], or RBC Capital Markets, LLC, Attention: Prospectus Department, Three World Financial Center, 200 Vesey Street, 8th floor, New York, New York 10281-8098 (telephone: 212-428-6670, fax: 212-428-6260).  Copies of the Canadian prospectus related to this Offering may be obtained by contacting RBC Capital Markets, Attention: Distribution Centre, 277 Front St. W., 5th Floor, Toronto, Ontario M5V 2X4 (fax: 416-313-6066) or Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, New York 10014 Attention: Prospectus Department (telephone 866-718-1649 (toll free) or 917-606-8474) or by e-mailing [email protected]  The Offering in Canada is only being made by the Canadian prospectus, which includes important detailed information about the Units being offered. 

This news release does not constitute an offer to sell or a solicitation of an offer to buy the Units, nor shall there be any sale of the Units in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

SOURCE: Sprott Physical Silver Trust

  1. And it’s paper!

    A promis to pay….

    I feel if your in the markets trading for work or have unlimited resources fine. But if your “Investing” to try and grow your little nest egg you are gambling with your future. We can have a collapse any day into the very near future and paper will evaporate.

    Is this your “Investment”


      While you are of course technically correct 427, the Sprott PM “Trusts” (not ETFs) are as close as you can get to phys’ without taking possession!
      The metal is 100% secure, audited, and you can take possession at any time… of course there is a minimum share threshold (they’re not a local coin shop) and, for those with serious holdings, it’s much more economical to hold PSLV than to pay for secure storage of the metal. Finally, it gives you the flexibility to step to the sidelines while the crooks have their way with the price… an opportunity to gain from the volatility resulting from the fraud…. it’s also the only way to hold phys’ within an RSP.
      Finally, the follow on offerings can hit the premiums pretty hard but they tend to recover quickly, and they can really spike during rallies (I once sold near 30% over NAV).

  2. Sprott’s PSLV ACTUALLY buys phyzz for the vaults.  As we saw a year ago, his buying usually causes a rise in the price, as you would expect.
    Meanwhile SLV can add a ton during a down day and the price is dropping.  The difference is plain.
    I don’t recommend any ETF, but Sprott’s would be the least risky, IMO.

    • @Marchas45
      lol People think just because Sprotts name is attached and is his fund that it’s safe. Digital evaporation of funds in the western banking system!! He will not be able to pay no matter how nice he may be   

    • @427 Exactlly Dan it’s another PAPER game no matter who’s name is attached. Geez I just don’t understand people. LOl
      Now I have to go and show a few homes to make some Fiat to buy some PHYSICAL.

  3. I’m not saying the Sprott people would run a scam, but people have to realise what they are buying with this ‘investment’.

    Realise this: It’s PAPER silver, no matter how reputable and respectable the company offering it. The paper is an abstraction of the physical metal. Paper is not metal.

    Last I heard, Sprott had not acquired the full quantity of metal to back the last tranche. Does anyone know if that is still the case?

    Mr Sprott could get caught short if he’s not careful.

    My point is, why go into this kind of investment, when you can just as well hold your own physical metal, thereby totally eliminating counter-party risk?      

    • You’re right that paper is not metal because industries are not going to use paper silver to build up some electronic circuit. Most of the silver’s demands are for the physical ones and not the paper ones. Also, there could be a lot of scandals in the paper market such as the incident of MF Global.

  4. Even if it was backed by Eric Sprott’s decree, I still wouldn’t trust these paper silver because “If you don’t hold it, you don’t own it”. Paper silver will totally lose their value when the whole fiat system will collapse because they are related to it and as for the physical silver, it’s value will stay the same because it has intrinsic value.

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