If you own the Sprott Physical Silver Trust (PSLV) and are eyeing this closed-end fund’s outsized drop today, try not to fret. The follow-on offering that’s driving the fund lower than silver futures and the big silver ETF today was sold at a premium to yesterday’s net-asset value. The extra cash will help shareholders in the future.

The Sprott fund is down 3.8% in mid-Thursday trading at a time when the iShares Silver Trust (SLV) is up 0.3%. What gives! You ask. Sprott priced a follow-on offering of 18.1 million shares at $11.05, for proceeds of about $200 million, or $230 million if underwriters exercise their over-allotment option. Judge the offering by its relationship to the net-asset value, which stood at $10.71 as of yesterday, or a 7.2% premium to the market value, according to CEF Connect. The offering priced at 3.2% above last night’s NAV.