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Wondering why silver suddenly just popped $1.00?
Sprott Asset Management has just announced a $200-$230 million follow-on offering for the PSLV.
As Sprott will once again be draining all available physical supply from the market to complete the placement, it is safe to say we have likely seen a bottom in silver.
TORONTO, July 12, 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 18,100,000 transferable, redeemable units of the Trust (“Units”) at a price of US$11.05 per Unit (the “Offering”). As part of the Offering, the Trust has granted the underwriters an over-allotment option to purchase up to 2,715,000 additional Units. The gross proceeds from the Offering will be US$200,005,000 (US$230,005,750 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.
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Anyone recall what yearly production is?
761.6 million ounces, or 23,689 tonnes.
So 1% of yearly production..
761.6 million ounces, or 23,689 tonnes.
So 1% of yearly production..
What I find interesting is that almost all holders of silver that I have talked to have no interest in selling. They are only adding to their stack.
So ... why would they be excited about the price going UP? If one has no immediate plans of either buying or selling, then the price doesn't really matter.
If one has plans to buy, then get excited when the price is manipulated down.
If plans are to sell in the near future, only then should there be any positive interest in seeing the price rise.
The psychology of many PM holders is far more interesting than any daily fluctuation of price in my opinion.
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So ... why would they be excited about the price going UP? ...
Everyone likes validation.
http://kingworldnews.com/kingworldn...ening_Black_Swan_Nobody_Is_Talking_About.htmlSprott had this to say regarding the latest Sprott Silver Trust offering: “We thought the timing was good in the sense that the silver price has been in the doldrums and there would be some underlying interest in the metal. We were happy the announced offering reached the target of $200 million because the issuing market is not very robust these days.
So we were quite happy with the results. And initially it will allow us to buy seven million odd ounces of silver, which we haven’t bought yet, but it will certainly help the silver market.”
The recent fully subscribed $200 million offering of new units by the Sprott Physical Silver Trust has received an additional boost by the offer underwriters - Morgan Stanley and RBC Capital Markets - taking advantage of an option that enables them to buy additional units on their own accounts. The two underwriters have between them taken up1.8 million units, in addition to the 18.1 million units on offer at US$11.15 each, bringing the amount raised by the Trust to a little over $220 million.
As previously noted here, Sprott plans to use the proceeds to purchase, and take delivery of physical silver to the value of the amount raised, which at current silver prices would amount to some 8 million plus ounces of physical metal.
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Eric Sprott still hasn’t got his silver yet. I can’t remember exactly how much, but he’s still short on his order. He hasn’t completed it yet as of last week. ...
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And courtesy of Ed Steer, we learn that Eric Sprott received a tiny 320,000 ounces of silver that he purchased.
He still has more than 1 million ounces left to go to complete his deal. Already it has taken 44 days to receive just under 7 million ounces out of 8 plus million.
(courtesy Ed Steer)
Sprott's Physical Silver Trust reported receiving 320,000 ounces of silver yesterday...and still has over a bit over a million ounces left to be delivered from their latest offering. Since they got the first tranche on July 11th, they have received just under seven million ounces...and since they purchased a bit more than eight million ounces, they're just awaiting the balance...44 days [6+ weeks] since receiving the first shipment. It will be interesting to see how long it takes to get the rest. From this information it should be obvious that good delivery bars are not exactly laying around.
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