Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Net Asset Value Premiums of Certain Precious Metal Funds - Sprott Places Gold Offering at Premium

IMG Auteur
Published : February 07th, 2012
258 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

 

 

 

 

Sprott Physical Gold Trust Announces Completion of Its Follow-on Offering of Trust Units
Feb 3, 2012

TORONTO, Feb. 3, 2012 /CNW/ - Sprott Physical Gold Trust (the "Trust") (NYSE: PHYS / TSX: PHY.U), a trust created to invest and hold substantially all of its assets in physical gold bullion and managed by Sprott Asset Management LP, today announced that it has completed its follow-on offering of 20,000,000 transferable, redeemable units of the Trust (the "Units") at US$15.19 per Unit for gross proceeds of US$303,800,000 (the "Offering").

The Trust will use the net proceeds of the 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 the Offering. The net proceeds of the Offering per Unit are greater 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, as required under the trust agreement governing the Trust.


At today's prices this offering will pull about 176,000 ounces of gold off the public market.

In the reverse of what we saw with silver, the big follow on offering for the Sprott Physical Gold Trust priced out at a premium to its NAV and its market price. I think that is not possible with silver because of the huge premium that the Silver trust often carries. The Gold Trust premium is normally in the 3-4% range.

Sprott placed the entire gold offering fairly quickly, having announced it last week.





 

 

<< Previous article
Rate :Average :0 (0 vote)
>> Next article
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Gold & Silver Market Morning
17 Decsamking731
Gypsie, my take on what he's saying is on paper gold, not actual gold that you are holding in your hand. In that way, gold is gold, though Pandas ...
Gold & Silver Market Morning
17 DecGypsy1
You have me confused Julian. When you say "We believe that holders of gold in the Ruble. . . . ." I take it you are not talking about someone hold...
New Poll Shows US Citizens in Ev...
17 DecJosu O.
It's very sad to see such support of torture in USA. What is incredible is that a lot of those people consider themselves christians and nice peopl...
Mark of the Beast: Microchips ‘T...
15 DecGypsy
The really scary Future Event (scary to The Powers That Be) will be telepathy: communication without implants among ALL humans. That point comes wh...
Elliott Wave Charts Point to Sho...
15 DecS W.
Are they the same Elliott waves by Bo Polny who predicted that Gold would be $2000 by year end? Gold remains in a downtrend for all to see.
Hugo Salinas Price Asks Mexico f...
15 DecGypsy
Mish, the Salinas idea is only half a solution. On the up side; it would be only a half-solution here too. The other half of the solution is to get...
Mark of the Beast: Microchips ‘T...
15 Decsamking732
With things like this and the news that the govt is buying top bankers survival kits, why are preppers still considered the "Kooks"? It seems to m...
Declaring War on Russia?
14 Decphrv3
Why wouldn't the Obama administration lie? It has always worked, and will... as long as americans let their "representatives" misrepresent them!
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Comments closed
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.