Gold and Silver are at heavy resistance, and on the verge of breaking out. More on this in the gold and silver commentary this evening.
The Sprott Physical Gold Trust continues to underperform a bit on premium because the market is still digesting its follow on offering at $14. The numbers have been updated to include the details on shares and ounces of gold release thus far.
Although priced at $14.00, the fund paid a commission to the underwriters amounting to about $10.6 million, or about .56 per new unit offered, roughly 4 percent. So the effective revenue to the fund is about $13.44. I assume this is the price that the underwriters, Morgan Stanley and RBC Capital Markets, will pay for any over allotments which they take.
"The Trust has granted the underwriters an option to purchase up to an additional 2,850,000 trust units at the public offering price, less underwriting commissions, within 30 days of the date of this prospectus supplement, to cover any over-allotments."
