by David Kranzler
Investment Research Dynamics
Sprott Asset Management announced a secondary offering of its PSLV silver trust on Friday. If the over-allotment option is exercised, the deal will raise approximately $86 million. At today’s price of silver ($15.95), that would translate into 5.4 million ounces of silver. I believe that the bullion banks are having more issues sourcing silver than gold to deliver into paper bullion commitments (Comex futures, LBMA forwards and possibly OTC derivatives). It will be interesting to see if Sprott ends up having delays in getting the silver it buys for this offering.