A registration statement has been filed by Toronto-based Sprott, Inc. for a new physical silver ETF. The Sprott Silver Trust will provide investors with the liquidity characteristic of an ETF, while at the same time exposing them to silver bullion. For some investors, this represents the best of both worlds in the currently unstable economy.
First came the Sprott Physical Gold Trust, an investment vehicle that allows individuals to exchange investments for holdings of gold bullion. The Sprott Physical Silver Trust will work in much the same fashion. The Trust has filed with the SEDAR and SEC to raise capital by initially selling $10 shares. According to analyst estimates, this IPO will allow the trust to raise a minimum of $287.5 million.
The money made from this public offering will be invested in a supply of physical silver bullion. Shareholders will have the ability to redeem all or a portion of their shares once per month in exchange for physical silver. According to the registration statement filed by Sprott with the SEC, the silver bullion acquired will be stored at the Royal Canadian Mint in Winnipeg. The Sprott Physical Silver Trust will be listed on the NYSE and TSX, Toronto’s stock exchange.
The Sprott Physical Gold Trust has been highly successful and it raised $442.5 million during its IPO. At least $279.5 million has been raised since this time through shares sold at a price of $11.25 each. The company is currently led by Eric Sprott but he will be stepping down on September 7 to hand the CEO reigns over to Peter Grosskopf. Mr. Sprott will remain employed, serving as Chief Investment Officer for Sprott Asset Management. This division oversees Sprott’s Physical Gold Trust and Physical Silver Trust accounts.
The success of the Sprott Physical Gold Trust was most likely a large factor in the development of the Physical Silver Trust. Being able to gain exposure to gold or silver bullion when desired is something that many investors are seeking in this poor economy. They want to hold something of value should the U.S. currency system collapse.
Source: Mineweb.com. Kosich, Dorothy. Sprott files registration statement for new physical silver trust.
Tags: Investing in Silver, investing in silver etf funds, silver etf funds