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Sprott Physical Silver Trust ET (PSLV) Message Board

silverbars 7 posts  |  Last Activity: Jan 21, 2015 6:44 PM Member since: Mar 9, 2007
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  • Reply to

    Secondary Offering

    by silverbars Jan 16, 2015 10:34 AM
    silverbars silverbars Jan 21, 2015 6:44 PM Flag

    If they don't do the secondary by next month they will have to start selling off the silver held in the trust just to pay the bills.

  • Reply to

    Secondary Offering

    by silverbars Jan 16, 2015 10:34 AM
    silverbars silverbars Jan 20, 2015 2:16 PM Flag

    Intraday premium is +3.4%. Sprott needs to pull the trigger now for the secondary.

  • silverbars by silverbars Jan 19, 2015 10:18 AM Flag

    Goldcorp up 1%+ in early TSX trading after announcing the buyout of Probe Mines at a 49% premium. Investors must like this deal as acquiring companies normally get their stock slammed on such news. With the green light flashing on the gold market, now is the time to gobble up undervalued assets on the cheap.

  • silverbars by silverbars Jan 16, 2015 10:34 AM Flag

    The silver market is turning up as the S is starting to HTF with world fiat currencies. If the premium stays up it looks like Sprott may be able to get the secondary offering through just as they are about to run out of cash. Taking more physical off the market will make some headlines and be a big psychological boost for retail demand. Only $800+K left in cash so Feb should be crunch time for a PLSV secondary.

    A good related article is pasted below.

  • silverbars by silverbars Jan 7, 2015 2:21 AM Flag

    Ya'll are aware that SGDM has been on the naked short list (NYSE Arca - Threshold Securities list) almost continuously from it's inception. I haven't seen anyone from Sprott pounding the table about this with the regulators. Of course the regulators don't go after the crooks who are doing this. With everything electronically traded one would think that it would be a piece of cake to track down who is counterfeiting shares.... if they wanted to know.


  • silverbars by silverbars Dec 18, 2014 11:43 AM Flag

    The intraday premium for PLSV is now negative, meaning that share holders are willing to sell their silver at below market prices. As I mentioned before, a secondary offering is not possible with a negative NAV. Possibly this is just a temporary phenomena as people may be selling for tax loss purposes and not because they are shunning silver.

    From the PSLV web site a few minutes ago:

    Intraday Indicative Value** $6.18
    Intraday Premium/Discount Calculation -0.25%

  • silverbars silverbars Dec 7, 2014 4:24 PM Flag

    The premium on PLSV shares is down to +1.1%. PSLV's cash levels are now scraping bottom -- currently $1.577 million. Another 3 months and we're below 0. With the drop in NAV, the management expense ratio is rising -- .73% as of Sept 30 2014 (the fees don't drop, but the NAV does, thus a higher ratio). Maybe people are thinking a secondary offering is imminent, but unless the premium starts to pick up soon that's not going to be the case and the drain of physical silver from the trust will begin.

    From the prospectus:

    "The Trust may conduct further offerings of units from time to time. Under the provisions of the trust
    agreement, the net proceeds to the Trust of any offering must be above NAV at the time of the offering."

    Underwriting fees tack on as much as 4% to a secondary offering which currently would put the offering price well below NAV. So what happens when the cash dries up and no one is willing to buy PSLV at a premium to allow a secondary offering to take place?

    Again from the prospectus:

    "The Manager will sell physical silver bullion held by the Trust to pay Trust expenses or to cover certain
    redemptions on an as-needed basis irrespective of then-current silver prices, and no attempt will be made
    to buy or sell physical silver bullion to protect against or to take advantage of fluctuations in the price of
    silver. Consequently, the Trust’s physical silver bullion may be sold at a time when the silver price is low.
    Sales of physical silver bullion at relatively lower silver prices will require the sale of more physical silver
    bullion, which in turn will have an adverse effect on the value of the net assets of the Trust and the NAV."

    Sort of the start of a self-licking ice cream cone.

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