STOCKS OF SILVER

[DiscoverGold]

Sprott Physical Silver Trust Files Shelf

* Wednesday, November 16, 2011

This shouldn’t come as a surprise, although today’s $PSLV price action in the face of the 4pm announcement might be surprising to some (see EDIT below). $PSLV filed a 6-k at 4pm today:

TORONTO, November 16, 2011 — Sprott Asset Management LP announces that it has filed a preliminary short form base shelf prospectus containing information relating to units of the Trust with securities commissions or similar authorities in all provinces and territories of Canada. Under the shelf prospectus, the Trust may offer from time to time during the 25 month period after a final receipt is received for the prospectus up to US$1.5 billion of units of the Trust.

This is the “secondary*” offering that has been expected – Sprott sold almost all of the shares that his asset management funds owned at a huge premium, and the Trust will now issue more shares. It should be noted that this filing is not the announcement of such an offering – only the request for approval to do such an offering. As of tonight’s close, PSLV’s premium to NAV is down to around 14%.

But what’s interesting is today’s PSLV price action. See, the SEC filing didn’t hit until 4pm:


16:00 time stamp

And yet, PSLV underperformed hard all day – starting with a sharp decline early. Almost as if someone knew about the filing and was trading ahead of it (see EDIT below).



I’ll give you one more screenshot – an email I sent to two friends at 11:55am noticing this:



http://kiddynamitesworld.com/sprott-physical-silver-trust-files-shelf

George.