Trust Highlights
The Sprott Physical Silver Trust is a closed-end trust that
invests in unencumbered and fully-allocated London Good Delivery
("LGD") silver bars.
The Trust was created to invest and hold substantially all of
its assets in physical silver bullion. Its purpose is to provide a
secure, convenient and exchange-traded investment alternative for
investors who want to hold physical silver bullion without the
inconvenience that is typical of a direct investment in physical
silver. The Trust does not speculate with regard to short-term
changes in silver prices.
Convenient
Units of the Trust trade on the NYSE Arca and the TSX and
provide investors with access to the physical silver bullion market
with the liquidity of an exchange traded security.
NYSE Arca: PSLV
TSX: PHS.U
Secure
Without exception, the Trust's physical silver bullion is fully
allocated and stored at a secure third party storage location in
Canada. The physical silver bullion is subject to periodic
inspection and audits. Unlike other bullion funds, the Trust does
not have an unallocated account that is used to facilitate
transfers of silver between financial institutions that act as
authorized participants.
Cost Effective
For many investors, the transaction costs related to owning the
Trust are expected to be lower than the costs to purchase, store
and insure physical bullion directly.
The Sprott Physical Silver Trust charges a 0.45% management fee
per annum. There is also an administration fee charged yearly which
is estimated to be roughly 0.20% per year. In 2011, the all-in fees
for the Trust totaled 0.66%.
Tax Effective*
For U.S. non-corporate investors who hold units for one year or
more and timely file a QEF form, gains realized on the sale of the
Trust's units are currently taxed at the
long-term capital gains rate with a maximum of 20%, versus the
maximum of 28% applied against most precious metals ETFs and
physical silver coins.
Redeemable for Physical Silver Bullion
Unitholders who hold certain minimum dollar value equivalents
have the ability to redeem their units for physical silver bullion
on a monthly basis. Please see "Redemption of Units" in the prospectus for
details.
Manager of the Trust
Sprott Asset Management
LP
Service Providers
Trustee
RBC Investor Services Trust, Toronto, Ontario, Canada
Custodian for physical silver bullion
The Royal Canadian Mint, Ottawa, Ontario, Canada
Custodian for assets that are not physical silver
bullion
RBC Investor Services Trust, Toronto, Ontario, Canada
Registrar and Transfer Agent
Equity Financial Trust Company, Toronto, Ontario,
Canada
Auditors
Ernst & Young LLP, Toronto, Ontario, Canada
Valuation Agent
RBC Investor Services Trust, Toronto, Ontario, Canada
* The information provided is general in nature
and is provided with the understanding that it may not be relied
upon as, nor considered to be, the rendering or tax, legal,
accounting or professional advice. Readers should consult with
their own accountants and/or lawyers for advice on the specific
circumstances before taking any action.
