Sprott Physical Silver Trust Prices Follow On Offering at $13.15

As we have watched the cash levels of the Sprott Physical Silver Trust drop below $7 million in the occasional Net Asset Value Premiums calculations posted here, I have been cautioning that they were going to be doing another follow on offering to raise cash and expand the silver inventory.

This offering is generally bullish for silver as it will take another large chunk of bullion out of the spin machine, further reducing the physical basis for leveraged paper silver.

The premiums have been reflecting that anticipation for some weeks now. The offerings tend to compress the premium on the fund for a period of time.

And here it is.

Press Release
Sprott Physical Silver Trust Prices Follow-on Offering of Trust Units In An Aggregate Amount of US$269,575,000

Nov 9, 2012

TORONTO, Nov. 9, 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 priced its follow-on offering of 20,500,000 transferable, redeemable units of the Trust ("Units") at a price of US$13.15 per Unit (the "Offering"). As part of the Offering, the Trust has granted the underwriters an over-allotment option to purchase up to 3,075,000 additional Units. The gross proceeds from the Offering will be US$269,575,000 (US$310,011,250 if the underwriters exercise in full the over-allotment option).

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...

Jon Stewart's Post-Election Show Wrap Up

Bill Moyers and Tom Engelhardt On America's 'Supersized Politics' and the Age of Spectacle

The Grandeur That Was Rome

"In the past thirty years it seems that Anglo-American culture has grown increasingly narcissistic. I do not know if there are more narcissistic individuals in society now, and perhaps there are not.

But I do think that narcissism is much more widely tolerated, rewarded, and even admired now than it would have been in the period of 1930 to 1950 for example. And that is what makes all the difference. More people feel free to indulge their selfish and egotistical tendencies, and to cultivate them, in order to be fashionable and competitive.

As an aside, I think this also tends to explain the decline of literature and poetry in American culture, and the rise of reality shows and the preoccupation with extravagance. Literature calls us out of ourselves, ex stasis, in order to fill us with knowledge and the creative impulse, while spectacle merely panders, and flows in to fill the empty and undeveloped voids in our being."

Jesse, Empire of the Exceptional:  The Age of Narcissism

Tom Engelhardt is the founder of TomDispatch.com and author of The End of Victory Culture and co-author, with Nick Turse, of Terminator Planet: The First History of Drone Warfare.



The impulse to evil is not the domain of any particular people or time, but a recurrent problem that must be confronted by each generation, and each individual person, in their own way and calling.

There is always the temptation to look upon injustice as insurmountable, and to simply turn away and to wash our hands with the thought that there is no use of trying, and even worse, in a descent into the apathy of relativism and uninvolvement saying, 'what is truth?'

That is the fate of those who who have ceased trying to be human, who have given themselves over to self-absorption, addictions, or despair, who are dying inside, and who when the time comes will make beasts of themselves, to escape the painful fragility of their own insubstantial being.

If there was any good news in the recent elections it is that so many well funded corporate efforts to promote particular candidates and their own agendas failed, despite the expenditure of hundreds of millions of dollars in slickly deceptive advertising campaigns.

This was a small victory for the American people, as the sputtering Karl Rove and the more cynical among the corporate interests went down to a general defeat, even as they were unable to accept or even comprehend that not everyone will play the fool for money, all the time.

But the more general problem of the corruption of the political parties by big money remains, and reform is the ingredient without which there will be no progress, and no sustainable economic recovery.