Sprott's Follow On Offering of PHYS Prices at US$14

Sprott Physical Gold Trust Prices Follow-on Offering of Trust Units In An Aggregate Amount of US$266 Million

TORONTO, ONTARIO--(Marketwire - 07/15/11) - Sprott Physical Gold Trust (the "Trust") (TSX:PHY.U - News)(NYSE:PHYS - News), a trust created to invest and hold substantially all of its assets in physical gold bullion and managed by Sprott Asset Management LP, announced today that it has priced its follow-on offering of 19,000,000 transferable, redeemable units of the Trust ("Units") at a price of US$14.00 per unit (the "Offering"). As part of the Offering, the Trust has granted the underwriters an over-allotment option to purchase up to 2,850,000 additional Units. The gross proceeds from the Offering will be US$266 million (US$305.9 million if the underwriters exercise in full the over-allotment option).

The Trust will use the net proceeds of this Offering to acquire physical gold bullion in accordance with the Trust's objective and subject to the Trust's investment and operating restrictions described in the prospectus related to this 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 the NYSE Arca and the Toronto Stock Exchange under the symbols "PHYS" and "PHY.U", respectively. The Offering will be made simultaneously in the United States and Canada by Morgan Stanley and RBC Capital Markets.

Global Gold Reserves Update

These are the offically reported reserves of the countries as of the end of June according to the World Gold Council.

It should be noted that these do not include any private holdings, which may be quite significant especially in certain countries like India and the Middle East.

It also does not reflect the reserves of certain countries that may be more opaque in providing this information, such as China.

Gold Daily and Silver Weekly Charts - Liberté, égalité, fraternité - PHYS Follow On Offer

PHYS is down 1.6% after hours on news of a follow on offering. You can read it here.

TORONTO, ONTARIO, Jul 14, 2011 (MARKETWIRE via COMTEX) -- Sprott Physical Gold Trust (the "Trust"), a trust created to invest and hold substantially all of its assets in physical gold 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 this Offering to acquire physical gold bullion in accordance with the Trust's objective and subject to the Trust's investment and operating restrictions described in the prospectus related to this 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 the NYSE Arca and the Toronto Stock Exchange under the symbols "PHYS" and "PHY.U", respectively. The Offering will be made simultaneously in the United States and Canada by Morgan Stanley and RBC Capital Markets.

I took the day off so I have not followed the market closely this day, and have no active positions.

Tomorrow will be an interesting day with all the cross currents and the options expiry.

Lost your place in the gold and silver bull run?

For those that haven't, Shout and Feel It by Count Basie.




Remember the price for liberty that was paid by those who went before us.

SP 500 and NDX Futures Daily Chart

The pivotal .50 retracement support at 1307 held again today on the close.

Tomorrow is options expiration.

Obama is calling for a meeting this weekend at Camp David to discuss the debt ceiling.

Watch it, this market may take off one way or the other over the next three weeks.