Interesting developments in the realm of silver - Spott announces big follow on offering for PSLV and note the action in the Scotia vaults in conjunction with the SLV ETF !

http://www.silverdoctors.com/sprott-announces-230-million-follow-on-for-pslv/

Sprott Announces $230 Million Follow-On for PSLV

Wondering why silver suddenly just popped $1.00?
Sprott Asset Management has just announced a $200-$230 million follow-on offering for the PSLV.
As Sprott will once again be draining all available physical supply from the market to complete the placement, it is safe to say we have likely seen a bottom in silver.

TORONTO, July 12, 2012 /CNW/ – Sprott Physical Silver Trust (the “Trust”) (NYSE: PSLV / TSX: PHS.U), a trust created to invest and hold substantially all of its assets in physical silver bullion and managed by Sprott Asset Management LP, announced today that it has priced its follow-on offering of 18,100,000 transferable, redeemable units of the Trust (“Units”) at a price of US$11.05 per Unit (the “Offering”). As part of the Offering, the Trust has granted the underwriters an over-allotment option to purchase up to 2,715,000 additional Units. The gross proceeds from the Offering will be US$200,005,000 (US$230,005,750 if the underwriters exercise in full the over-allotment option).

The Trust will use the net proceeds of the Offering to acquire physical silver 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. Under the trust agreement governing the Trust, the net proceeds of the Offering per Unit must be not less 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.

The Units are listed on NYSE Arca and the Toronto Stock Exchange under the symbols “PSLV” and “PHS.U”, respectively. The Offering will be made simultaneously in the United States and Canada by underwriters led by Morgan Stanley and RBC Capital Markets in the United States and RBC Capital Markets and Morgan Stanley in Canada.

Copies of the U.S. prospectus related to the Offering may be obtained by contacting Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, New York 10014 Attention: Prospectus Department (telephone 866-718-1649 (toll free) or 917-606-8474) or by e-mailing prospectus@morganstanley.com, or RBC Capital Markets, LLC, Attention: Prospectus Department, Three World Financial Center, 200 Vesey Street, 8th floor, New York, New York 10281-8098 (telephone: 212-428-6670, fax: 212-428-6260). Copies of the Canadian prospectus related to this Offering may be obtained by contacting RBC Capital Markets, Attention: Distribution Centre, 277 Front St. W., 5th Floor, Toronto, Ontario M5V 2X4 (fax: 416-313-6066) or Morgan Stanley & Co. LLC 180 Varick Street, 2nd Floor, New York, New York 10014 Attention: Prospectus Department (telephone 866-718-1649 (toll free) or 917-606-8474) or by e-mailingprospectus@morganstanley.com. The Offering in Canada is only being made by the Canadian prospectus, which includes important detailed information about the Units being offered.

http://www.silverdoctors.com/is-the-cartel-moving-silver-from-scotia-vaults-to-the-slv-to-meet-delivery-requests/

Is the Cartel Moving Silver from Scotia Vaults to the SLV to Meet Delivery Requests?

For the 3rd consecutive day (following the 1 million ounce withdrawal Monday and 651k ounce withdrawal Tuesday) we have a massive silver withdrawal to report from Scotia’s vault Wednesday.

SD reader Saddle has noted that the previous 2 silver withdrawals almost exactly equal a coinciding massive new silver deposit just reported into the SLV fund.

As Harvey Organ has long alleged, it would not surprise us if the cartel is currently scrambling to move around what little PHYSICAL silver they have left to meet delivery requests at the SLV.

Saddle notes:

I want to point out something very important.  SLV is allowed to increase its inventory through paper contracts, physical, and futures.  If you look at the SLV inventory for July 10, 2012 you’ll see it increased from 311,271,605.500 ounces up to 312,823,227.900.  This is a net increase of: 1,551,622.4 ounces.

Remember that number.

Scotia has lost a lot of (supposedly physical) silver in their COMEX vaults on the following dates:

July 11, 2012 – 651306 ounces withdrawn

July 10, 2012 – 996615 ounces withdrawn

Add these up and you get: 1,646,921 ounces removed from the vaults.  This is extremely close and only about 6% different.  Its so close and when you’re talking over a million ounces moving around, these are big movements.  Remember how hard it was for Eric Sprott to get physical silver in quantity?  Well, I can tell you these two movements are very likely connected.

We need only look to the famous FOFOA for an explanation of the relationship between ETFs and actual physical/delivery demands:  http://fofoa.blogspot.com/2011/01/who-is-draining-gld.html

A clearer picture is over at Victor the Cleaner’s site: http://victorthecleaner.wordpress.com/2012/06/01/gld-the-central-bank-of-the-bullion-banks/

So here is what is likely going on:

The authorized participants need more physical silver urgently.  A large withdraw request was thrown at the Scotia Mocatta vault to deliver the physical.  Once the receipt was available, the SLV ETF was able to consider the silver purchased and part of their inventory.  It takes time to move large quantities of silver, so the movement was done over two days.

Now we’re left to wonder why they so urgently needed physical in the SLV ETF…

Go back to FOFOA and Victor’s explanation and we realize that someone needs to borrow the silver out of “the central bank of the bullion banks” and this was done to load up the ETF with actual physical (rather than paper claims or derivatives on silver which are normally part of the SLV inventory)… or maybe…. just maybe a bank has resupplied physical silver they borrowed from their “central bank” — that being the SLV ETF.

With this week’s segregated client theft by PFG, it might not be long until this list is expanded, but here is the missing phyzz from MFG:

www.cmegroup.com/delivery_reports/Silver_stocks.xls

Every day we’re shufflin….shufflin

While the CME is now reporting inventory levels to 3 decimal places, strangely enough- once again, NO MENTION FROM THE CME OF THE MISSING 1.4 MILLION OUNCES OF REGISTERED SILVER THAT SIMPLY DISAPPEARED IN THE AFTERMATH OF THE MF GLOBAL BANKRUPTCY!

As a strangely coincidental supply turned up in JPMorgan vaults almost simultaneously as the MFGlobal clients phyzz went missing, until the CME provides an update of what happened to this stolen inventory, The Doc will continue to provide the latest available info on this from the CME:

*Registered ounces of metal currently not available for delivery

as of 11/4/11 due to MFGI bankruptcy. Included in above totals.

DEPOSITORY Registered 

Brinks 210,320

Delaware 65,706

HSBC 793,734

Scotia Mocatta 351,156

COMEX SILVER INVENTORY UPDATE 7/12/12

METAL DEPOSITORY STATISTICS
SILVER						Report Date: 7/12/2012
Troy Ounce						Activity Date: 7/11/2012
DEPOSITORY		PREV TOTAL	RECEIVED	WITHDRAWN	NET CHANGE	ADJUSTMENT	TOTAL TODAY
BRINK’S, INC.
Registered		17,150,042.090	0.000	0.000	0.000	5,193.000	17,155,235.090
Eligible		11,394,032.820	596,154.500	0.000	596,154.500	-5,193.000	11,984,994.320
Total		28,544,074.910	596,154.500	0.000	596,154.500	0.000	29,140,229.410
DELAWARE DEPOSITORY
Registered		2,292,012.912	0.000	0.000	0.000	20,872.522	2,312,885.434
Eligible		21,480,361.826	0.000	10,187.877	-10,187.877	-20,872.522	21,449,301.427
Total		23,772,374.738	0.000	10,187.877	-10,187.877	0.000	23,762,186.861
HSBC BANK, USA
Registered		4,645,996.540	0.000	0.000	0.000	0.000	4,645,996.540
Eligible		35,591,118.650	0.000	0.000	0.000	0.000	35,591,118.650
Total		40,237,115.190	0.000	0.000	0.000	0.000	40,237,115.190
JP MORGAN CHASE BANK NA
Registered		7,447,368.180	0.000	0.000	0.000	0.000	7,447,368.180
Eligible		9,391,803.206	0.000	0.000	0.000	0.000	9,391,803.206
Total		16,839,171.386	0.000	0.000	0.000	0.000	16,839,171.386
SCOTIA MOCATTA
Registered		7,152,902.780	0.000	0.000	0.000	0.000	7,152,902.780
Eligible		27,919,310.440	0.000	621,840.300	-621,840.300	0.000	27,297,470.140
Total		35,072,213.220	0.000	621,840.300	-621,840.300	0.000	34,450,372.920
TOTAL REGISTERED		38,688,322.502	0.000	0.000	0.000	26,065.522	38,714,388.024
TOTAL ELIGIBLE		105,776,626.942	596,154.500	632,028.177	-35,873.677	-26,065.522	105,714,687.743
COMBINED TOTAL		144,464,949.444	596,154.500	632,028.177	-35,873.677	0.000	144,429,075.767