Q: Good morning,
I see "Sprott Physical Gold and Silver Trust Updates Its 'At-The-Market' Equity Program" and may issue up to one billion dollars of new units. If I understand this correctly, Sprott will issue new units at the market price. So say gold and or silver go up, Sprott will issue new units, does this not stop the price of CEF from participating in the price rise of the metals and they issue new units and therefore reduce the demand from the market for units currently available and cap the price rise? If one wants to participate in the rise in gold and or silver appreciation it seems to me CEF is therefore not the way to do it.
Thanks.
I see "Sprott Physical Gold and Silver Trust Updates Its 'At-The-Market' Equity Program" and may issue up to one billion dollars of new units. If I understand this correctly, Sprott will issue new units at the market price. So say gold and or silver go up, Sprott will issue new units, does this not stop the price of CEF from participating in the price rise of the metals and they issue new units and therefore reduce the demand from the market for units currently available and cap the price rise? If one wants to participate in the rise in gold and or silver appreciation it seems to me CEF is therefore not the way to do it.
Thanks.