thiis would create an enormous amount of new demand for physical silver bullion. sprott doesn't buy the paper kind:

Earlier this year, commodity hedge fund manager Eric Sprott broke the mold for exchange-traded commodity plays with his Sprott Physical Gold Trust ETV (NYSE: PHYS - News), which allows investors to exchange their stake for bullion bars on a monthly basis. MarketWatch notes that investors have paid up to a 10% premium for the option. According to Dow Jones, the Canadian precious metals bull plans to follow up the success of his gold fund with the Sprott Physical Silver Trust, which he hopes to list on the TSX and NYSE.

Assuming the Sprott Physical Silver Trust maintains a similar structure to the gold fund, it will be interesting to see what type of premium investors are willing to pay for the option to exchange their stake for bullion instead of cash. Given the pricing disparity between the metals, it will take a much smaller investment in the silver fund to add up to the value of a bullion bar.

http://finance.yahoo.com/news/Sprott-Hopes-to-Launch-Silver-indie-3014889170.html?x=0&.v=1